The conversion rate in your business can act as a perfectly accurate barometer reflecting the health of your business. Conversion Rate is the rate that you turn enquiries or leads into sales. Very often there are several conversion rates to consider as follows:
If you have a retail business, it may be true that most people who come into your business buy something so the conversion rate here may not tell anything. However, you might like to measure how effectively you turn 1-2 time buyers into regular customers. This can be an amazingly effective measurement.
If you have a multi-faceted lead management system with various stages, you might like to measure the conversion rate from one stage to the next and then look at an overall measurement.
The brilliant thing about conversion rate is that any improvement in conversion give you an immediate improvement in bottom line, very often without having to cost you a cent.
An improvement in conversion rate automatically improves the effectiveness of your marketing reducing your cost of acquisition.
An improvement in conversion rate is a great moral booster for any team member involved in sales.
Strategy to Improve Sales
The biggest challenges in attempting to improve conversion are as follows:
- Getting into the habit of measuring a conversion rate
- Getting people involved in improving the system to change and when they do change, enforcing this so that it becomes the norm.
By improving conversion rate and maintaining the habit gives an ongoing and consistent boost to a business. It is the single thing that we focus on the most at ActionCOACH in terms of a strategy to improve sales.
At ActionCOACH, the accountability that we bring, plus the training on what to do and how to do it combine brilliantly to ensure successful breakthroughs in conversion.
There is also a flip side to this. Very often a business owner will tell you that they are extremely busy, with a brilliant conversion rate but are making now money whatsoever.
The signal here is that they are selling for less than they should and then cannot keep up with the business. We may encourage an increase in margin here with a consequence of a reduced conversion rate, very often with improved profitability and less “busyness”. This tactic paves the way for growth in a business in a measured way.
The first step in improving conversion is to identify the different rates in the business, measure them and then identify ways to improve – we have about 50 strategies in ActionCOACH. Call us today.