It is important to review your sales conversion rate in order to develop new customers and sales channels and increase sales.
This time, we will explain how to create a strategy to improve the conversion rate so that your sales activities do not fail.
What is the conversion rate?
The sales conversion rate is a number that indicates the percentage of approaches, such as telemarketing, emails, and visits to sales clients, that actually led to sales negotiations.
This can also be seen as a brazil telegram phone number list number that indicates how well your idea was listened to.
The higher the number, the more efficient your sales activities are, but if the number is low, it means your current sales activities are not going well.
The average conversion rate is said to be around 30%, so it's a good idea to use this figure as a guideline.
It is generally said that it is difficult to move forward with negotiations and secure a contract without increasing the number of approaches.
In order to close a contract and turn it into sales, you first need to get the other person to listen and get them interested in your product or service.
Therefore, it is necessary to increase the probability of developing an approach into a business deal.
Calculation method
The conversion rate can be calculated by dividing the number of converted sales by the number of effective approaches.
For example, out of 500 approaches made in a month,
If 20 cases develop into sales negotiations, then 20 ÷ 500 = 0.04, which means the sales conversion rate would be 4%, which is a very low figure.
On the other hand, if only 350 out of 1,000 approaches were successfully converted into sales,
"350 ÷ 1,000 = 0.35", which gives a sales rate of 35%, which is close to the average.
In this way, the sales rate can be calculated by dividing the number of cases that actually resulted in sales negotiations by the number of approaches made through telemarketing or other means.
Characteristics of organizations with low sales conversion rates
Although there are average values, the conversion rate is not the same everywhere, and there are some companies with extremely low rates.
What are the characteristics of companies and organizations that have a low sales conversion rate, meaning they are unable to conduct efficient sales activities?
We will introduce the specific features below, so if you are struggling to improve your sales conversion rate, please refer to this.
Not understanding the needs
In order to conduct accurate sales negotiations, you need to understand the target demographic that is seeking your company's products and services, and then conduct sales activities that are committed to that demographic.
If you approach someone who doesn't need your product, they probably won't listen to you if they don't need it.
Furthermore, even if you do need someone, if you do not adapt your approach to suit their attributes, it will be difficult to get close to them and you will not be able to develop a business deal.
In other words, if there is little understanding or grasp of the needs of the customers who are supposed to purchase the product, the approach will be one-sided, will be weak in appeal, and will not lead to a sale.
In order to make customers think, "Your product might be able to solve the problems I'm currently facing," it is necessary to conduct sales activities tailored to each customer.
Low number of valid lists
If your conversion rate is low, it could be that you're not generating enough qualified leads and your list isn't very rich.
There are many effective methods for generating lists and leads, but it is difficult to convert them into sales unless you have had some sort of contact with them before approaching them.
Furthermore, if you approach a list that is not part of the existing customers who currently use your product or service, you may end up not being able to carry out appropriate sales activities.
It will be necessary to improve the accuracy of your lists, such as by "determining your targets based on information about existing customers" and "obtaining valid leads through web marketing and public relations activities," in order to increase your rate of sales.
Keep in mind that in order for an approach to develop into a sales negotiation and progress to a contract, it is basically a "user who needs a product or service."
The timing is wrong
If the conversion rate is extremely low compared to the number of approaches, it may be that the timing of your approach is wrong.
If you approach your list and leads at the wrong time, you risk losing interest from users.
When approaching users as part of sales activities, a company will need to wait for a time when there is high user interest in the product or service.
To do this, you need to understand how much information about your company's products your visitors have come into contact with, for example by analyzing the information of visitors to your website.
Determine when interest in your product is increasing by looking at information such as what demographic is in demand for your product, and when and how your target audience finds out about your product.
