What is an ideal yet realistic conversion rate (from lead into sale) for my business?
If you are getting 10 leads per month, through organic reach, then how many of these leads can I expect to be able to convert? If you are unable to convert a single lead out of 50 leads - would you consider this a problem? How many leads should I realistically be able/expect to convert out of 50?
Dinesh, as they have already mentioned, this will depend solely on your sales process and skill level. Even if someone is able to guess what they think a close ratio should be, another question to ask is how can you continue to measure between the numbers (lead.close) to continuously improve. If 50.1 is your current number, then what is your process improvement plan?
After many years in sales & marketing go back to basics. It depends on what you are selling? Is there a demand, a need or can you create a want for it?
1. If its cold calling or emailing expect 1- 2%. Being positive, that means you need to contact thousands to get a result & aim your marketing that way.
2. Try 10 to 15 different approaches & then use the best one.
3. Really if you are getting theca leads & not getting the sales, perhaps the leads are poor quality & you need to provide more information in your organic searches. Good leads should be 50% sold before you approach them.
It depends on what product it is and what you margins are What is your business
How are you currently trying to convert your leads? Are you actively engaging with them?
Converting leads to quality sales opportunities is usually a sales activity, but sales does need quality leads to work with to start with. Judging by your comments above I believe you may need some kind of lead scoring system.
Hey. Without having any background info, it FEELS as if you are not 'cutting it'. No offense! I train and coach through my own developed time-analyzer.com. One thing I can reveal that would bring better conversions: build maximum trust and relationship first during the sales process. I sometimes have a conversion 1:1. All because of trust and relationship. Hope this helps a little bit. Good luck and be the best in your field! David Rakers
I got a spiffy landing page together a few years ago then was disappointed when no money was coming in. Checking the stats I realized that no one was looking at the page. Literally no hits. So I focused on getting people to the page and sales improved dramatically.
No conversions out of 50 leads doesn't make me panic. It does make me curious where people are stalling in your process.
Are they opening the email?
Are they clicking on links?
Are they returning phone calls?
Do you have a sense of how far people are getting in your process? That's the place to start. Then over time you can keep tuning your process to improve your conversion rates.
Let us know how it goes!
A realistic Conversion rate is dependent on the type of business that you deal in . in reality the conversion rate ranges from 3%-10%
How long is a piece of string? Dinesh, the answer to your question is it depends. I work with clients who achieve a 2:3 ratio at one end of the spectrum to clients that achieve 1:10 at the other end. The factors that could affect this many and varied. Here are a few to think about.
Your product / service / sector
The value your product delivers to your customer
The speed of your response to the lead
The source of the lead
Your customers expectations
Sorry to be vague. But there isn't really a right answer here. Happy to elaborate/help further if you can share more info about your business/product etc
All the best
Hi Dinesh - there are two approaches to answer your question:
A. Traditional (also called: seek/mudsling, hit/miss, hope/pray, statistical odds) systems , similar to what you described = 20-50% conversion maximum ... and only if it is a lucky day. How's that working for you? (see my PS, below for an immediate, guaranteed, permanent solution).
B. What your Inner Truth attracts to you = 80-100% close rate. Consistently.
To explain (my focus is clearly 100% on B): When you attract those people and resources that serve you best, there is no conversion needed. Ever. They already want what you offer and are willing to pay full value, up front. And bring you more business like them. That's right.
I just posted a resource here recently, to be included in this month's MosaicHub monthly ezine on productivity tools. I called it 'Isn't This Your Time to Get UNstuck NOW?" where I provide my results-achieving "95-5 Strategy' to empower yourself to consistently attract only resources that serve you best, including the above. Nice. Do take a peek. Apply it for yourself and share it.
How soon will you decide how I can be of further support to you now?
PS Ever wonder why is it even the most seasoned pros don't close, even in the right fishing hole and with the right fishing bait? It is because there is something UNconscious (within them) that they don't know ... that they don't know (you read that correctly!) about what's holding them back. And it has zero to do with the system or the fish or the tools. What to do?
I empower my VIP clients who experience this (don't we all?) to wipe out all their UNconscious self-limiting beliefs/decisions and all negative past, unwarranted emotions. Permanently via a Quantum Change Breakthrough (completed in just hours, often by Skype). Then install resources to CREATE positive outcomes to achieve 80-100% close rates, consistently. Find someone certified to empower you this way or check the info at www.is.gd/Quantum. To your improved, measurable results, Dinesh.
We are intimately involved with clients from a variety of business sectors in lead management and what we see is that it entirely depends on the business sector. Some have very high lead gen initiatives as a key part of their marketing process but a very small % of closings that result in a sale. Auto dealers are a perfect example.
You really need to look into a CRM and enter all you leads and at what stage they are. The further down the funnel they are the higher the conversion rate. once you get to giving a quote you might expect better than 50% but before that could be as low as 10%
Have you classified the lead? Is this person a decision maker or lower level manager searching for information? Perhaps it is a competitor searching our information? You need to first understand the "LEAD" before you can answer the question that you pose. Once you put a means of qualification together, you will then and only then be able to identify a close rate or at least what you need to know in order to better your close rate.
Generally speaking, in B2B sales, a 20-25% closing rate is considered good. A lot depends upon the quality of the lead. If the lead is an unqualified "name" then expect a 5-10% closing ratio, if that. If on the other hand, the lead is less a "suspect: and more a "prospect" than the 'normal' closing rate would apply. (A 'suspect' is someone who MAY need what you're selling and a 'prospect' is someone who DOES need what you're selling.)
If the salesperson is receiving pre-qualified leads, expect a 45-55% closing ratio. (A pre-qulaified lead is someone who WILL buy, hopefully from you.)
In my experience, B2C and retail sales will have different closing ratios.
Really depends on your business.
I work in hospitality and we would expect about one in ten.
It would depend on what you define as organic leads.
If you literally mean people that stumble across your site, then I would say that a 1 in 5 or maybe even 1 in 10. If these leads are via an advertising or marketing campaign then you need to be pushing for a 1 in 3 conversion.
The company I work for advertise and market in different sectors, depending on the value of what we are offering the sectors, the ratio changes. We always however, look for a 5:1 return on our investment.
Leads aside, it is critical that you have salesmen/women with the ability to actually close the lead itself. Are they trained on the brand you are offering, can they build a rapport and gain a customers trust.
Providing that you have a solid sales team, and a sales funnel that suits what you are offering, there is no reason why you can't see a decent return on your investment.
Dinesh - great question! It's not a mathematical formula, unfortunately. So much depends on the nature of the lead. But what you can control is your follow through. How is your introduction on the phone? Do you have a concise and appropriate "script" to use, and do you ask the right open ended questions to get the information you need to make an offer? Are you engaging and personable, and adapt your style of communicating to match that of your potential client? These are what will get you more conversions.
I am a Realtor and my lead conversion is about 5% (includes all lead types).
Conversion rates are going to entirely depend upon your sales funnel and value of your product to the consumer. Many factors affect it, say for example, your organic keywords are not buying keywords. I go back to a time when I was promoting a site:
Rolex Submariner Watches
Rolex Submariner 16613 Watch
Buy Rolex Submariner 16613 Watch
These are five keywords, going in order from most impressions to least. If you're looking at conversion rates, you need to look in the other direction, bottom to top. These 5 keywords go in order from generic to long-tailed and needless to say, you're going to get fewer impressions for the most long-tailed, but as the searcher is further into the buying process, your conversion rates will be higher.
With a top notch buying funnel, even the 10% you state is pushing it, I'd suggest an optimised sales funnel should be converting at 5-10% but that's also going to depend on your price and authority within your industry.
I think lead conversion is a process. It's helpful, if you can afford it, to hire someone who specializes in lead conversion.
That being said, I think one of the most common mistakes we can make is attacking leads with sales pitches. We need to qualify the lead first. There are tons of questions to ask in that process, but here are a few to help:
1. Are the the decision maker for the product/service your offer?
2. What product/service, if any, are they using that you're offering to replace?
3. Are they satisfied with their current solution?
4. Are they contractually able to switch to you?
5. Is your product/service really better than what they have? (hardest question)
You should market your product/service, qualify leads, go through the sales process with qualified leads, and send the unqualified leads back to the marketing lists.
Also, following up within a couple hours of interest is exponentially more successful than waiting even 24 hours.
This is my experience on both sides of sales anyways. Buying has effected my selling. I want to know that the seller is concerned with my satisfaction up front. It is a relationship. They woo me with marketing, make sure it's the best solution for me, convert me, and check in on me as often as appropriate. It's a very relational process for me.
I hope any of this helps you. I'm not a sales expert, but I have good conversion rates with leads, and I believe it's because of honestly walking each lead through that process of building relationship.
Best of luck!