Conversion is the act of turning a prospect into a paying client, which is crucial in B2B lead generation services. A conversion rate is one of the essential metrics that help sales and marketing departments evaluate the efficiency of their online marketing activity.
When experts are eager to get traffic to their websites and landing pages, they want the top of the sales funnel to be filled rather than empty, right? Boiling it down to basics, conversion happens when the user makes any desired action. If you run a paid advertising campaign on a social media platform, then each user who clicks on the link is a conversion, as well as each user who buys something. The percentage, which is also referred to as rate, is calculated by dividing the number of converted users by the overall users and turning the results into the percentage.
Is the conversion rate important? Immensely. When marketers spend resources, time, and effort on online campaigns, they want their marketing tactics to work. Otherwise, they need to try a different approach.
What is the conversion rate in B2B sales lead generation? It is any kind of response to advertising and marketing materials:
- Following a link to a business’s website or landing page.
- Signing up for a newsletter.
- Dialing a company’s number.
- Filling in a form.
- Testing a free trial, eBook, application, etc.
- Engaging with the website’s online chat.
- Creating an account on the website.
- Making a purchase.
- Engaging with the website (repeat visits, leaving a shopping basket full, visited pages, time spent online).
The conversion rate shows whether the strategy is working at each stage of the sales process and reflects the prospects’ progress through the sales funnel. A good conversion rate informs marketing and sales teams of the success of their lead generation efforts. If your firm outsourced B2B lead generation services, such a rate could be indicative of its benchmark performance.
Types of conversions
Conversions in B2B sales funnel fall under the two main categories. That is lead and sales conversion.
- Lead conversion rate
If a company notices that a lead is interested in its services, it is likely to market to them more. Generating leads is among the primary goals of marketing, and lead conversion rate helps marketing teams determine the exact percentage of website visitors who are identified as leads.
With this rate, any business can determine the best channels for B2B sales lead generation.
- Sales conversion rate
When marketers want to know their performance across the sales funnel, they calculate sales conversion rate. It is one of the metrics a marketer would be interested in. These teams want to know if their marketing tactics work or whether they need to be revised.
The sales conversion rate helps determine the percentage of conversions in accordance with the total number of visitors.
What is a good conversion rate?
At that, there is no single conversion rate that would be applicable across industries, business models, and lead generation efforts. Everything is known in comparison. If anyone wants a definite answer to “What is a good conversion rate?” 5% to 9% is a solid ballpark figure. However, in reality, it is translated into 5.1% for Professional Services and 0.8% for Automotive. This is easy to understand: paying a lawyer has a lower price and has less risk involved than buying a fleet of trucks.
Let us now investigate the average conversion rate for email by B2B services makes 5.7% and by B2B tech 2.4%. B2B Services (2.1%) have the average conversion rate for social networks higher than B2B Tech (1.0%). Meanwhile, organic search conversions are higher for B2B Services than paid search conversions (7.0% vs. 5.0%), whereas they are lower for B2B Tech (1.0% vs. 2.5%).
However, such broad statistical numbers will do you little good if you cannot narrow them down to your business and your outbound campaign. Online there are benchmark tools where you can enter the niche your company operates in and the conversion rate to see how well you do compared to the competitors.
Furthermore, when you are running campaigns on the same audiences repeatedly, your rates will go down, but CPL usually goes down because leads are warming up. The bottom line is that such kind of data does not tell the whole story.
How to calculate conversion rate?
While doing online marketing, it is vital to measure the performance of your efforts along the sales funnel. Thus, be sure to determine whether you should improve your marketing tactics or change your online marketing strategies.
Before calculating your campaign metrics, include tracking conversions into the analytics. Overall, popular social media networks have conversion tracking embedded in the analytic section.
Starting to track conversions is not a breeze, but you truly need to do it to boost your sales funnel. You will need to set it up or get someone to do it for you. But after you start tracking conversions properly, rest assured you are set up for success because less than 50% of advertisers are using this metric to improve their campaigns.
Just in case you haven’t found a technician to set up a good conversion tracking, learn how to calculate conversion rate manually by using a simple formula:
Lead Conversion rate = (total conversions / prospects) *100%.
As you can see, the formula is quite simple. It is the number of conversions divided by the total number of leads and multiplied by 100.
- Lead Generation Conversion Rate=Number of Leads Collected divided by Total Traffic on Site X 100.
- Website Visitor Rate = Number of Website Visits divided by Number of Ad Views X 100.
- Sales Goal Conversion Rate=Number of Sales divided by Number of Visitors or Clicks X 100.
A more specific example:
How do you calculate the conversion of warm leads who downloaded a free ebook from the landing page? Apply the conversion rate formula and the following numbers: 6,500 visitors from last week and 156 leads who have signed up through your lead form for an ebook.
(156 signups / 6,500 visitors) X 100%.
Lead conversion rate = 2.4%.
Keep in mind, although theoretically, there is a difference between ‘click conversion rate’ and a typical rate, in most cases, these are interchangeable terms. If you want to be literal, a click conversion measures specifically how many people click on a link, whereas the rate is associated with another action taken by the individual.
Conversion rate optimization
All these metrics are necessary to analyze why leads are not converting and what can be done to help them convert. Once you hypothesize the reasons, you can optimize your conversion rates from 1% to 2% just by improving the performance of your sales platform. Conversion rate optimization is a highly effective tool as it does not require increasing traffic or running new marketing campaigns. Conversion rate optimization services include new CTA ideas, value proposition, A/B testing, etc.
How to maximize your conversions?
You now understand the importance of calculating conversion rates. You also know how to calculate the rate and what is a good percentage. The idea behind conversion tracking is identifying where you are and employing strategies to make improvements. Now, when you see the conversion rate as strong performance tracking software, let’s find out what you can do about it.
- Create a clear value proposition
You must convince your visitors that your services are worth investing in. This will be possible if you have a clear value proposition. The proposition should clearly state why the customers should buy from you and list the benefits they will derive from it. Your proposition will improve your conversion rate if it stands out from your competitors’ offers. Also, make sure that it resonates with your target audience.
- Have a responsive landing page
Too small fonts, broken links and other inconveniences on your website will not help you convert your prospects. Assess your site and ensure that it works for your click conversion first. To convert the user, the platform should be easy to navigate, responsive, and optimized for mobile.
Remember that most of the visitors will be using their smartphones, and they should have the same experience as someone who is using a desktop.
- Write a powerful call-to-action (CTA)
Call-to-action will help you move the user down the sales funnel. Tell the user what you want them to do so that you can get the desired result. If you want to increase your click conversion rate, tell the user which action to take.
Make sure the CTA button is large enough so that users do not miss it while scrolling.
If you have doubts about the efficiency of your sales funnel and are eager to enhance customer engagement, set an appointment with our consultants and see how we can help. At Belkins, we are skilled at marketing tactics and improving conversion rates without increasing traffic.