What is your batting average? (And I’m not talking about baseball!) Your customer acquisition and growth is determined by how many prospects to engage with (“at-bats”) times how many you convert (hits, home runs, etc). Depending on your business, there may be several conversion rates and it is important to measure your success at each step in your sales process. In this way, you know which areas, if any, need work.
For example, you meet a lot of people. Not all are prospects for you (although they could generate referrals). So, the ones that are prospects will make appointments to talk to you in depth. This is your conversion rate from contact (first meeting) to appointment. For every appointment, it may be a next step to make a proposal or estimate. Now you have a conversion rate from appointment to proposal. You will sell some of those proposals so you now have a conversion rate from proposal to sale. If you have 100 contacts and 50 make appointments, that’s a 50% conversion rate. If 10 of those request a proposal, that’s a 20% conversion rate. If 4 buy from you, that’s a 40% conversion rate. Overall that’s 4 out of 100 or 4% from contact to sale but it’s also important to measure at each step in your process.
Many business owners think their conversion rate is higher than it really is. When they measure it, they’re usually shocked! The good news is that this means there is a lot of room for improvement. Conversion rate is also among the easiest and least expensive to change so it is important to measure frequently and act quickly. Some of the best tactics to put into place to improve conversion rate are USP, Guarantee, testimonials. Start measuring today!