To achieve success for your company, you need a lot of planning and spending hours analyzing and reporting various information and relevant data about the company’s current situation.
Among the various rates that exist in managing a company, the sales conversion rate is one of the most important, as it reveals how much your company is selling.
With this, it is possible to identify whether sales are favorable or not for the healthy development of the company. However, do you know how to calculate the sales conversion rate correctly and what is the ideal sales conversion rate for your company?
In this article, we will talk everything about this subject, so you can put it into practice in your company and optimize your sales results. Check out!
What is sales conversion rate?
The sales conversion rate is a metric widely used to measure how many people went from prospects to customers, that is, it is the number of conversions carried out that generated sales in your company.
It is the number that shows what percentage of the audience converts and actually brings results to the business.
Therefore, it is important to explain that this indicator is not just a sales metric, but an important number to analyze to understand how many opportunities throughout the funnel become closed deals, that is, how many visitors become customers.
To give you an idea of how important sales conversion rates are, we have separated some data on closing sales.
- Typical business referral closing ratios are between 50% to 80%.
- The conversion rate for warm leads is between 30% to 70%.
- The conversion rate for cold prospecting with qualified leads varies between 20% and 35%.
- Furthermore, the average conversion rate for semi-qualified leads is around 10%.
In other words, conversion rates reveal several things about your entire business, presenting opportunities and weaknesses that can be used to optimize the company and, consequently, further increase the number of sales.
How to calculate the sales conversion rate?
Before we identify the ideal sales conversion rate, it is necessary to know how to calculate this rate.
Doing this is easy. To calculate the sales conversion rate, simply divide the number of conversions by the number of total visits or contacts.
For example, if in a month your website received 5,000 visits and had 1,500 sales, then the conversion rate is 30%.
The conversion rate formula is:
(Conversions in the period / total contacts) * 100 = conversion rate (%)
When carrying out the calculation, it is important to use data from the same period so that there are no contradictions in the results.
What is the ideal sales conversion rate?
Now, what is the ideal sales conversion rate? The big reality is that this depends a lot and is influenced by several factors, such as your market segment, seasonality, economy and much more.
Therefore, it is recommended that you carry out an in-depth study of the market and frequently evaluate your company’s conversion rate.
For a store, for example, sales conversions during periods such as Christmas and Black Friday are much higher than during the rest of the year. However, for a B2B company, which offers services to other companies, this rate is not so high during these periods and this does not mean that the company is in crisis or that there is a problem to be solved.
To better understand the company’s reality, it is possible to ask some questions that can serve as a guide to identify the ideal sales conversion rate.
Why is the rate this way?
- Are they not yet mature enough to close a deal with my company?
- Is it necessary to nourish them with rich materials?
- Is the sales team’s approach not convincing?
With this in mind, you can understand where you need to improve so that your sales conversion rate increases and brings more results to your company.
Count with ASB Marketing to increase your sales
If you want to implement demand generation strategies in your business, it is of paramount importance to start with planning.
In this scenario, understand your audience, online behavior, preferences and, especially, make an analysis of your competitors and current demands of the market.
Then understand how your sales process works and what characteristics need to be changed to meet your ideal customer profile.
In addition, it is essential to keep in mind that demand generation does not only occur by paid media, on the contrary, inbound marketing actions (attraction marketing) and demand generation generate very advantageous results for organizations when well employed.
Finally, you can count on an experienced marketing and sales company to support the implementation of these strategies, such as ASB Marketing.
With the best innovative methodologies and tools, ASB Marketing finds its ideal customer and qualifies them through fully automated and personalized email cadence.
When the lead arrives at the purchase decision phase, we only passed on to your commercial team to close the negotiation. With this, we guarantee increased sales, reduction of trade cycle, cost optimization and support in long -term business expansion.
Do you want to know more? Go now and see how ASB Marketing can help your business!