- June 4, 2017
- Posted by: Darryn Le Grange
- Category: Sales
In part 1 of this article we spoke about how Revenue is a function of Lead Generation and Sales Conversion Rate. We covered lead generation in the previous article so will cover conversion rate in this article.
Lets start with what conversion rate is – it is the % of sales made divided by leads received, ie: if you receive 10 leads and close 4 deals, you have a conversion rate of 40%. From experience, most businesses do not accurately measure this but rather estimate it and once we put the actual measures in place we often find the actual conversion rate is much lower than their estimated one.
It is critically important to accurately measure the conversion rate because if you don’t know the score, how can you improve it? Your brand or marketing efforts are attracting a certain number of leads and each one that goes unconverted is a lost opportunity. When you know what the score is, you can start to interrogate why people aren’t buying from you and you can put strategies in place to correct this. The more info you have at your disposal, the greater the ability to analyse and improve. If you look at sport as an example, lets take rugby – at the end of each match the coach gets full stats on each player, how many tackles made / missed, how many metres gained, lineouts lost / won, scrums lots / won etc etc. All this info is extremely useful in assessing the players and their current performance.
Some common causes of a poor conversion include the following reasons:
- Poor service around the initial engagement – ie: If you take 3 days to respond to an enquiry it is highly possible your prospect will go elsewhere;
- Insufficient demonstration of Value – ie: Price is what you pay, Value is what you get. How good are your sales team at demonstrating value? If the prospect perceives the price to be higher than the value, then they will not buy;
- Poor Selling Skills – Lots of businesses do extensive training on their products or services but very little to no training on sales skills. Sales is a science and can be mastered with the correct training.
We have a selection of 82 Conversion Rate Strategies within the ActionCOACH Coaching System and we assist our clients to implement some of these into their businesses to improve their conversion rate. Some popular conversion rate strategies that have been proven to drastically increase sales conversion are:
- Having a Defined Sales Process (From initial contact to closure of deal)
- Use of Client Testimonials
- Use of Sales Scripts
- Sales Training for the Team
ActionCOACH Ignite offers a brilliant 1 day sales team training that has received rave reviews over the years.