Senior Writer: Heena Soni
Are you facing low sales despite having many visitors to your website? Well, you are not alone. Many businesses around the world are suffering from low lead conversion rates.
Poor lead conversion is a typical scenario that makes you uncomfortable even though your website’s contact form experiences high filling.
About 91% of marketers highlight that lead conversion is the most important goal for them to achieve. Nearly 53% of marketers around the globe spend half of their marketing budget on the lead conversion process.
These statistics clearly say generating leads isn’t a piece of cake.
According to the state of lead conversion in marketing & sales, only 12% of professional marketers manage to meet their lead-generating goals with their ability.
This article is about briefing lead conversion and the lead conversion strategies helping marketers to create efficient lead conversion strategies with a better understanding of the lead conversion process.
What is Lead Conversion?
Before we can explain how to build an effective lead process, let’s first define what lead conversion is:
In today’s digital business world, almost all business leaders would become aware of what is lead conversion? But still, it is mandatory to have clear thoughts about lead conversion. So, here is the expert’s explanation for lead conversion.
Lead conversion converts your website/online store visitors/lead into a customer. It is a collaborative process carried out by marketing professionals and sales professionals.
The strategies and process of lead conversion entail and stimulate the visitors/lead to buy a product or service and push towards a positive purchasing decision.
How to Build a Lead Conversion Process in 4 Easy Steps?
To fully get how the Lead conversion process works, it’s also important to understand how to build an effective lead conversion process in 4 simple steps.
As mentioned early, lead conversion isn’t an easy thing to do. A visitor or a lead generally goes through several stages before turning into a potential customer. This means businesses need to nurture their visitor’s so-called lead at every stage and create opportunities to turn them into customers.
Here are the 4 easy steps to build an efficient lead conversion process.
1. Gather information on leads
To start with the lead conversion process, you need to first look at the data you have on your leads. Data like source from where the lead came, industry, company, and how leads engage along with leads volume will be useful. Moreover, gathering such lead information is easy.
With that lead information, you can easily create an effective strategy that will brief you on your lead’s needs. Working on the lead conversion process would waste time without a proper lead strategy.
2. Identify high-intent behaviors
Identifying potential leads is the key for businesses to increase their lead conversion rate.
A visitor/lead who reacts to the business’s campaign is not likely the same as the person who visits your online store to make a purchase. So, it will be difficult for the sales team to close a sale with unqualified or non-potential leads sent by the marketing team.
To avoid this, marketers should send every lead with low intent or high intent to the sales team to close a sale quickly and easily.
3. Use a service-level agreement (SLA) to combine your sales and marketing teams
Lead conversion strategies will struggle or be ineffective if there is no alignment between the sales and marketing professionals.
To create an effective strategy for lead conversion, both sales and marketing teams should be on the same page. Therefore, there should be a typical service-level agreement (SLA) between the professionals of both sales and marketing teams.
4. Build the lead conversion path
Thinking of building your lead conversion path?
Here is the strategy example of one of the top B2B SaaS companies you can follow. The fictional UK SaaS company ‘Zion’ strategy will guide the right path where you can easily turn your leads into customers.
- Based on the SLA between Zion’s sales and marketing teams, the marketing teams send 100 qualified leads to the sales team every month.
- After identifying the potential leads with high-intent behavior, emails inviting the leads to take part in the scheduled product demo should be sent automatically.
- At the same time, the responsible sales rep should receive a backend mail containing all the information on the lead and their behavior, including the follow-up timeline.
- If the responsible rep fails to engage with the lead on time, an automated personalized email should be sent on behalf of the sales rep.
This is how the fictional SaaS Company Zion builds a strategy for improving lead conversion rate. This is how the fictional SaaS Company Zion builds a strategy for improving lead conversion rate.
Like Zion, every business can easily minimize SaaS mismanagement using SaaS Management Software that provides required visibility on applications used by the sales and marketing team. This software helps to track SaaS Applications within minutes.
Lead Conversion Strategies
Top companies worldwide spend around 198 USD on average to generate a potential lead.
Companies consider that amount as an investment rather than a cost. Therefore, a proper lead conversion strategy is essential to get a high return from the investment in B2B lead generation.
Here is the list of the top 8 lead conversion strategies you can use to gain better business ROI.
- Use landing pages: Landing pages gain more attraction since the home page of a website lacks personalization. Marketers address narrow audiences through personalized landing pages.
- Build content marketing: Content marketing is always a go-to tool for marketers. By creating high-quality content, you can easily educate leads about your products/services and engage them to make a positive purchase decision.
- Go social: Social media platforms are a great way to new-gen shoppers. Also, going social will let you know more about the leads and nail customer conversion through personalization.
- Apply email marketing: Over the years, email marketing has been considered the most efficient way for customer retention. Using different email strategies and personalized content will easily turn high-intent leads into a customer.
- Try push notifications: Employing customized or personalized web push notifications will be a perfect strategy to increase lead conversion rates. Push notification is one of the most preferred strategies for several top companies.
- Proceed to call: Implementing the SPIN (Situation, Problem, Impact, and Need) technique over the phone sales of your business will be an effective sales tool for increasing lead conversion.
- Consider chatbots: AI-powered chatbots simplify the lead conversion process and increase the ROI with minimum effort. Chatbots allow businesses to leverage lead conversion goals by understanding your lead’s needs.
- Retarget through PPC: PPC campaigns effectively create more interaction between the brands and interested/high-intent leads. Offering relevant PPC campaigns on the lead’s interest and location can be one of the worthy lead conversion strategies for businesses to follow.
How to Calculate Lead Conversion Rate?
Wondering how to calculate the lead conversion rate of your business? You are in the right place!
Take a look at how simple calculating the lead conversion rate of your business is.
If your total lead is 150 and your total conversion is 15 means, your lead conversion rate would be (15/150)*100 = 10%
What is a Good Lead Conversion Rate?
The ideal lead conversion rate depends on various factors.
Factors like what channels are being employed for lead conversion and how audiences are nurtured play a key role in determining a good lead conversion rate. In addition, the lead conversion rate will differ from industry to industry.
However, according to eConsultancy’s performance benchmarks tool, the answer for the ideal lead conversion rate then the answer would be around 1 to 3%.
5 Lead Conversion Metrics To Track
Source – whatfix.com
- Site traffic: Site traffic is one of the key lead conversion metrics to track your site lead conversion by measuring the number of people who visit your site.
- Conversion rate: It is a lead conversion metric used to predict the success of your sales funnel. It measures the total number of leads versus those converted as customers.
- Engagement rate: This lead conversion metric measures the time each lead spends on your website ads. This metric is useful for tracking how your company’s promotional materials are performing.
- Customer attrition: It is the measurement of how long a lead engages with the brand or businesses. This metric helps your business to identify and improve customer loyalty and sales.
- Customer lifetime value: It measures the total time a customer spends on your business’s products or services. With this metric, businesses can easily identify the value a customer brings to the business.
Lead Conversion Examples
Here are perfect lead conversion examples that show how popular brands convert their leads into customers using successful lead conversion strategies and tools.
1. Hootsuite goes for an eBook
Hootsuite, a popular social media management tool, prefers content marketing for generating leads. The proposal of Hootsuite understands what the customer wants through the proposal. Then they educate leads on their landing page through promotional sections and end with calls to action. They use email marketing and free eBooks to increase conversion if it doesn’t work.
The clothing retailer Mango uses the social media platform Instagram to drive more leads. Mango uses social media shopping pages to convert leads into a customer. Leads are redirected to the product page upon engaging with the social shopping page.
3. Hubspot uses chatbots
The marketing software developer Hubspot uses chatbots to generate leads. The chatbots make things easier for visitors to understand more about the products/company through presenting documents. Later, bots directly lead to a salesperson.
Summing up, lead conversion isn’t a one-and-done process and not a simple, clean-cut process. But with proper organization and automation, you can make it easier.
Figure out the appropriate strategy that suits your business task well from the above-enlisted for improving your lead conversion rate. Also, you should provide full support to your team despite offering a suitable conversion strategy to yield a better outcome.
Lead Conversion FAQ's
Leads are the number of customers visiting your websites, whereas conversion leads are the number of leads that convert into your customer.
It depends upon the time duration of customer attrition. To calculate actual time, you can apply this formula: Time to Conversion = (Total time spent by all leads / Total number of converted leads).
During the lead converting process, a separate account and a new contact is created based on the information gathered from the lead.
During the lead conversion, the CRM system stores all the lead and purchase details in one place. This helps businesses to close sales much faster and to build strong relationships.
Here are the lists of ways you can convert leads to sales:
- Offering discounts Creating an effective and worthy FAQ page
- Creating an effective and worthy FAQ page
- Creating personalized emails
- Doing normal follow-up
- The awareness of your lead's potential
- Using a more appealing call to action