Do you know your lead conversion rate?
Your lead conversion rate in my view is a number that is equally as important as revenue and profit.
It should be reported right along side these numbers monthly
What is a lead conversion rate?
It is the calculation of how many leads that were generated by your marketing efforts.
Social media, advertising, tradeshows, cold outreach versus how many sales you make.
And it is important as without it you have nothing.
If you are not sure of your conversion rate read this https://thesalesstrategist.com.au/lead-conversion-not-lead-generation/
By monitoring your conversion rate you develop an insight into
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Your business performance
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The performance of your sales team
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The performance of sales team individuals
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The effectiveness of sales training you engage in
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The effectiveness of your marketing efforts at providing quality leads
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The ability to track which lead source is more effective in providing conversions
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The ability to track industry trends that may effect performance
If you spend a little time getting clear on your conversion rate it can have a double impact or reducing expenses and increasing revenue.
Reducing expenses by calculating which lead generation sources that you are paying for that may not as effective as others.
For example if you have a 5% conversion rate from leads generated on social media and this is costing you $1500.0o per month, versus a paid for advertisement in a trade publication that is costing $2000.00 per month with a conversion rate of 20% its easy to see where extra funds could be channeled.
Knowing your conversion rate is an excellent way to hold your sales team accountable and set reasonable and realistic KPI’s, and sets benchmarks for others to aspire.
