There are almost 1000s of companies in the world that suffer huge losses daily. Whatever the reason for your downfall is, the main thing because of which you failed is due to the lack of marketing of your product or service. You will fail only when you fail to market your product to the customers. It can be due to multiple reasons, but it doesn’t even matter because your business is already closed.
What Is A Good Lead Conversion Rate?
So, the first dream that every entrepreneur sees while developing in his/her young business career is that his product will be a common household name, and obviously, everyone will like it and use it. But that is not how the real world works. There are more than enough factors to think when we calculate how many people will use your services or product. Not only the quality and usage of your product matters, but there are numerous other financial and psychological reasons. Just like we see 100s of companies killing it out there when we consider the market cap, there are 1000s of other companies that get crushed because of the fierce competition by these very big names.
So what are the key features or characteristics of a good company?
It is their “Lead conversion rate”. As per Lead Conversion Squared review, Lead conversion rate is the number of people that subscribe to or buy your services or products divided by the total number of people that actually visit your business. For example, if 100 people visited your site on Monday and only 5 of them bought your services, then the lead conversion ratio will be 5/100, which is 5%.
Don’t get surprised, but 5% is actually a decent number. Even if you are successful if converting 5% of the visitors to customers then consider yourself a decent businessman. But what actually is a good number? How much is the lead conversion ratio of these big companies? Let’s go ahead and find answers to these questions in the below section:-
How is the lead conversion ratio calculated?
Don’t worry, you don’t have to sit all day to see and calculate how many people have visited and how many actually bought your services. There are computers to do this thing. All you have to do is upgrade your business. The computers will do the math for you.
Almost every typical business use Google Analytics to monitor the crowd on their website. Google analytics is very advanced software that gives accurate numbers regarding the number of visitors, age group of visitors, the gender of visitors, region, and most probably the lead conversion ratio. Every sort of data can be easily acquired by using computers.
How much is the ideal conversion rate?
Well, if we consider the ideal conversion rate, then it depends on business to business. But in general, a 10% lead conversion rate is considered as a very good value. Companies struggle to reach even half of this value in today’s world. To get a perfect amount of customers of your product you must:-
- Nurture them
- Listen to their needs
- Adjust your product accordingly
All these reasons can affect the customer experience a lot. And in the end, user-experience is all that matters. You must be able to connect with the customer. His journey from the starting to the end must be seamless and should be how he/she wants. You must give occasional discounts and other attractive offers to lure a significant number of visitors. All there are the business strategies that can get you a bigger audience. But what are the digital marketing numbers?
Try spreading your product information amongst all the social media platforms, engage with users via ads. Follow the latest trends on the internet. Try to engage with users via stores and Instagram lives. Only after doing a lot of hard work, you may get a little bit of boost in your lead conversion rate.
For a company which is ruling the market, 10% may be a very small number, on the other hand, the small scale companies are trying to get the double-digit from forever. Well, the number of lead conversion ratio is not fixed. It’s different for different sectors. An eCommerce may consider a 7% ratio as a very successful ratio while on the other hand, an online software company may see 10% as the ideal number. The numbers will change; it won’t be the same for everyone. Make sure you don’t lag behind. Continue optimizing your website. Start social marketing today because remember, more the number of visitors you have more is the probability of becoming some of them as your customer.