Many companies look at the conversion rate as a metric to be used as a thermometer to understand the actual efficiency of communication on the website or on a specific page. Also, there are those who prefer to use that information purely for the definition of goals of a commercial team or an e- commerce .
Others prefer to only consult that data once a year, to understand how performance was throughout the year and define strategic actions on it. And there are those who do not look at that data and do not fully understand its importance or even do not know how to measure it.
But in the end, is it really that important to actually measure that data? Where is it directing us and how can I use it to my advantage? We are going to answer these questions here and even open a space to discuss the issue.
What is The Conversion Rate?
The objective of this metric may be to understand how is the return on each investment of your company, be it time or money, in relation to sales . But it can also be a good way to measure the results of your digital marketing strategy .
From the simple filling of a registration, through the request for a quote, to an inscription in a newsletter .
Understanding your conversion rate is very important, since it will make clear how efficient and mature the website is, and it is also of utmost importance to accompany the results of the business as a whole.
The conversion rate can be calculated between all stages of the sales funnel and provide a diagnosis of where the bottleneck is, the weak point of the strategy and, mainly, shows where we should act.
How Does The Conversion Rate Help Measure Results?
There is always some investment in money or even time in a company for the launch of a campaign. Now imagine if you had ways of understanding exactly the result of that work as accurately as possible.
You can, for example, create a landing page of a promotion and promote it in your communication channels. People would go to start entering the page, showing interest in the content.
Of all the people who enter, those who are actually interested in the subject will complete a form, according to your strategy to achieve conversion. Done, one more conversion for your page! With each period or with each campaign, you can evaluate the number of people who converted versus the total number of visits.
Hence it’s just following that number to understand how many actually prospered toward closing the sale. Thus, you will have a more precise understanding of the return on your investment, be it in money directly or in time.
This is just an example of how measuring the conversion rate can help your company to better direct its efforts in Digital Marketing. And we know from our own experience that an optimized conversion rate helps keep the funnel healthy.
How To Calculate The Conversion Rate?
In a very simple way, we managed to measure the actual conversion of the website. We can measure the percentage between each stage, considering the following criteria:
- Leads Visitors;
- Leads for opportunities;
- Opportunities for clients;
The following image better illustrates how the funnel looks:
That is just one example, but if in your company’s strategy you find it interesting to “break” the funnel in more stages or reduce it, just adapt it to your reality.
Let’s go to a practical example, calculating the conversion of website visitors to Leads.
The goal here is to capture the contact of the person who is browsing the website and understand who they are to later work on their nutrition.
A website with a visitor volume of 10,000 revenue in a given period had 598 forms completed, between conversion points that are strategically arranged on some pages and pop-ups.
In that case, we calculate as follows:
- Income: 10,000
- Number of Conversions: 598
- Calculation: 598 / 10,000 = 5.98%
We have here a 5.98% conversion rate for visitors to Leads.
It is important that you know what measures to analyze at each stage and have a total diagnosis of the performance of your website and, thus, direct efforts to the right point.
Conversion Rate: How to Optimize the Entire Sales Funnel
Sometimes it happens that we see many companies that, to generate more volume at the bottom of the funnel, that is to say sales, works to increase the volume of visitors (top of the funnel) more and more, precisely because they think that by maintaining current rates, they will be able to increase proportionally sales.
The problem is that this strategy does not work well like this and it is not sustainable in the long term.
For this there is an area of study in Digital Marketing that is conversion optimization: using techniques to make the Leads advance along the funnel, without necessarily increasing the volume.
We’ll give you some ideas of what to do to optimize each stage of the sales funnel, but before we get started, two things are necessary:
- Know the current metrics of your company’s funnel. For this we have the Digital Marketing Funnel
- Ideally, you should identify where the bottlenecks are and work to improve one stage at a time
Conversion Rate, Funnel Top: Traffic Generation and Leads
The top of the funnel is where the visitors to your company’s website arrive, deluded by those who think that optimizing the top of the funnel is just focusing on traffic generation. As we have said, it is not something sustainable, and many times it is not cheap.
There are some ways to increase the conversion rate of the website, taking advantage of the volume of existing visitors, to also increase the number of Leads that advance in the funnel.
Some of these ways are:
Optimize The Conversion Rate Of Each Channel
Understand where the traffic is coming from (social networks, paid advertising, Google, etc.) and which pages are being visited from each channel.
For example, in paid advertising, better matching the ad to the offer and the target audience will make it easier for the visitor to find what they are looking for. This will increase the conversion rate. In the case of paid advertising, increased conversion still lowers the cost per Lead.
Increase And / or Optimize The Contact Points That a Lead Has With Your Company
This involves not only the forms, but also:
- Improve the design and localization of call-to-action (try different variants)
- Use Lead capture tools such as scroll-box (window that appears after a certain height rolling the page), exit-intent (that pop-up that appears when you are leaving the site), among others. It may seem boring or tedious but it works.
Do A / B Tests
Perhaps this is one of the first things that comes to mind when we talk about optimizing conversions – and it’s not for nothing.
Doing an A / B test many times is simple and brings incredible improvements in conversion. where by removing just one field from the form, we increased the conversion rate of Landing Pages by 167%.
Half the Funnel: Preparing Leads for Purchase
Now that you have managed to transform more visitors into Leads and have gotten their attention, it is necessary to keep them committed to your company and make them consume more content to advance in the buying process.
Optimizing this stage is crucial for the performance that sales will have later. For this, 3 actions can help you:
Define The Purchase Process
This first stage will help you define the contents for each of the purchase stages, identify which stage each Lead is in and treat it according to it.
By defining and understanding your customer’s purchasing process, you know what type of information is most important and when it should be delivered. Giving the right information at the right time makes the Lead have a much greater attachment to your company.
Example: if the Lead is already well advanced in the matter, he has already understood what problem he is going to solve and he is already in a phase of making the purchase decision, there is little point in sending him super basic information. The important thing in this case is to build content that helps you make this decision (such as cases, comparisons with the competition, sample materials, etc.)
Create Marketing Automations to Nurture Leads
After the purchase process has been organized, it is necessary to be smarter in order to make the Leads advance the purchase process in a more automatic and scalable way.
With marketing automation it is possible to deliver the right content, for the right Lead, at the right time, and on a much larger scale. The two main major benefits are increased sales and reduced acquisition costs.
Qualify the Leads Before Passing For The Sales Team
As the generation of Leads increases, we begin to create another problem: an excessive number of Leads for the work of the sales team. In theory, if we have sales force to do boardings, more Leads is always better. However, from our own experience we know that each seller has an ideal volume of approaches per period, and exceeding this number will imply a decrease in the effectiveness and productivity of the seller.
Therefore, delivering more qualified leads can contribute a lot to the productivity of sellers.
Leads’ own rating can also be optimized and scaled. Lead scoring is a method / tool to automate the qualification of leads. based on some rules, the marketing automation softwares analyze the Lead information and indicate how prepared those Leads are for the purchase. In case they are not yet at the ideal time, they should continue to be nurtured. If it is at the ideal time of purchase, they are sent to the sellers.
Funnel Fund: Sales and Retention
With the optimized funnel top and middle, our Leads are arriving polite and in adequate volume. Our next step is to filter which Leads really have the potential to become customers, and we also have a lot to optimize at this stage.
The bottom of the funnel can be divided into three key points that we will seek to optimize: qualification, delivery of the leads and boarding.
Deliver Leads for Sales More Efficiently
There is a great correlation between sales and the time between the conversion of the Lead on your site and the seller approach. To the point of indicating that if we manage to board in the first 3 minutes after an action, we will increase the conversion rate by 98%.
At this point the marketing automation plays a big role, sending the Leads that you consider qualified in real time to the sales CRM.
In addition to the speed with which we send the Lead to sales, we must also think about the attached information. In general, any information you have about the Lead that helps the seller to make a more personalized approach should be sent. Ideally, the seller should have in their hands the information about the Lead’s profile, such as decision power, size of the company and segment, and what the Lead was looking to solve when it reached your content.
Use Content To Help Sales
It is deceiving who thought that after sending the opportunities to sales, the marketing job is finished. It is still the responsibility of marketing to offer help to the sales process.
These contents can serve as support for sellers, and also for potential buyers who need to explain what they have learned to the decision maker.
Marketing automations can also work for you right now, helping the seller to nurture the Leads according to the sales objections presented.
You can use them to promote urgency in the purchase, provide case studies that validate your value proposition or update the prospectus about improvements in your product that were missing to complete the sale.
How Do I Know If My Conversion Rate is Good?
In the example above, we show a website that has the conversion rate of 5.98% in the period analyzed.
Is it under that number? That is relative! It will depend on your market, since there are comparisons between the segments that can give better targeting.
Either way, it’s clear that over 90% of that website’s revenue is being lost for some reason. And it is there that a whole job enters in which your marketing team can act, to understand more exactly what happens with visitors who do not convert and understand the conversion of the entire funnel.
Generally speaking, the conversion rate is one of the most important metrics in a company and should be a latent concern. It is a management number and of great importance, which will help in the development of the company’s marketing actions. At this point we cannot rule out the sales team, which will be responsible for bringing relevant insights related to the leads that the marketing team delivers, and also understand the quality of those Leads and constantly work on adjusting the criteria.
If you want to achieve a good performance in your business, identify each weak point and the opportunities that can be worked to improve your results, be sure to keep up with your conversion rate!