Effective Ways to Increase your Conversion Rate

While speaking about the effective sales avenues by an organisation, it is very much essential to determine the efforts put in by it to augment its sales for constant growth. Almost all businesses throughout the world follow numerous practices to generate sales including enticing advertisements, efficacious publicity campaigns, alluring offers, promotional strategies and stirring contests.

To judge the effectiveness of such attempts, it demands a mechanism or a formula that actually works. Effective digital marketing strategies for start-ups & entrepreneurs can bring a charismatic impact. Attaining success in high conversion rate exactly does that to transform business fortunes.

Yes, a conversion rate or a sales conversion rate tells us how much the business has been able to sell as compared to their visitors resulting from their marketing and sales techniques. If you are in the eCommerce you must ensure website bounce rate to streamline business and keep growing. Before proceeding further, let’s know what a Conversion Rate clearly means and how it impacts business fortunes.

Conversion Rate: The Key Facts

As Optinmonster highlights, proven ways to increase conversion can bring tremendous change. A conversion rate or a sales conversion rate is simply the number of conversions as compared to the number of visitors to the site. It means that to determine a conversion rate, one simply has to divide the Actual Sales by the Lead Generated. A conversion also indicates how much of the lead generated by the Marketing Department of an organisation has been converted into Actual Sales by the Sales Division.

Hence every organisation requires to maintain a strong procedure for a robust Internet Marketing Policy. They can avail the services from the companies that offer Internet Marketing solutions for the said purpose. Well planned strategies will determine its conversion rate to analyse the intensity of its Marketing & Sales approaches.

Read: An Ultimate Guide to Writing Blogs That Convert

Similarly, Lead refers to persons who are interested in the product or services that are offered. They might or might not purchase the product or service that are demonstrated as a result of certain factors. The conversion of the potential buyers to the actual buyers is the one which has been elaborated here:

Importance of Conversion Rate

Persistent business monopolies and cutthroat competition in almost all business sectors across different industries call for committed efforts to generate sales from prospective consumers. In the current scenario, the majority of consumers are well-informed and knowledgeable therefore they are precise enough to draw a justifiable comparison between the product/service utilities and their needs. As a result of this, many organisations are engaged in innovative ideas to induce consumers nowadays.An important tip in this context is how successfully you ensure Google reviews are generated for your business and they get noticed as well.

It is often witnessed that many businesses have at several instances had enough leads generated. They were in good numbers but their conversion to actual sales would rather remain poor. Many causes are there for such scenarios as not prepared for conversion, having inefficient selling techniques, failure to sustain the consumers’ interests or even lack of expertise that could lead to poor conversion rate. When we speak of conversion rate, we not just mean it in reference to the physical markets but also in terms of eCommerce platforms therefore the preparation should be done accordingly.

Like iEdunote describes, there is an ardent need to remain abreast of the present market concept which has been gradually transforming to eCommerce platforms on a larger scale. This platform gives ease to the consumers with which they can select and also ascertain purchasing anything from anywhere at any time 24*7 with only a few clicks and taps. And, they can do so without facing the need to even visit the market. For the eCommerce platforms, you must remain abreast of the content marketing ideas. Similarly, it is also mandatory that you focus on the tools & techniques that should lead more customers to your website.

The leads comprise of the number of people visiting the eCommerce portals and viewing the products and offers. Online purchasing gives a lot of benefits to the customers such as cashback and instant discounts which is absent in the physical or traditional markets. The sellers in the physical markets usually have low-profit margins which don’t permit them to allow any such offers to their customers. Consequently, the conversion rate of the eCommerce market is higher than that of the traditional or physical markets in the current context.

An ideal conversion rate is different for a Wholesaler and that for a Retailer. It also differs from one industry to the other. According to Episerver’s B2C Retail Benchmark Report, Q1 2020, an overall average conversion rate across all industries of the Retail Sector was reported at 3.0%.

Why is Sales Conversion Rate Used?

An ideal conversion rate guides the businesses to calculate how many leads have to be generated to result in the desired sales size. By determining its own sales conversion rate, an organisation gears to bridge the gap between the target sales and actual sales. It helps in identifying the setbacks in the efforts of the Marketing and Sales Department of the businesses concerned.

Conversion rate stands as a measure against which the businesses analyse whether the sales so resulted from the lead generated is enough to sustain their profitability and growth.

How to Calculate Conversion Rate?

Conversion rate is expressed in terms of percentage. The formula to determine it is very simple and easy to understand. It has been stated below:

CONVERSION RATE =   (Total Number of Sales /

                                         Total Number of Leads) * 100

Let us see how do we determine conversion rate with the help of the above formula.

For instance, the lead generated by the marketing team of a Garments Company has been 50 in a day, which means 50 people visited and surfed the website of the company in a day where its garments are displayed, considering it an eCommerce business. Out of them only 10 prospective consumers purchased the garments so marketed and got converted into actual buyers. Therefore, actual sales have been 20.

Total Number of Leads = 50    Total Number of Sales = 20

Therefore, Conversion Rate = (Total Number of Sales /

                                                 Total Number of Leads) * 100           

                                              = (20/50)*100

                                              = 20%

In the above example, the Sales Conversion Rate of the Garments Company is 20% on that particular day which means out of the 50 leads generated, 20% of them have actually purchased the garments from that particular Company. Usually Conversion Rates are weekly, monthly, quarterly, bi-annual or annual.

Conversion Rate Optimization

Keeping in consideration the utmost competition among the businesses, it is predominant for them to optimize their conversion rate. Escalation of Sales Conversion Rate can take place via rigorous Advertising and Marketing efforts. The Marketing techniques should be most convincing to influence prospective consumers to a level where they shall not be able to deny a purchase decision.

To achieve the aforementioned targets, the businesses come up with interesting offers and rewards to be offered to the actual consumers. Such attempts tend to sustain the leads and get them converted into sales. Additional discount on the immediate purchases, free after-sales service, extended warranty, lucky draw, competitions and contests, gifts, one on one free or one or two free and other such offers constitute effective sales techniques amongst others.

Conclusion

With the assistance of the above-stated specifications, it is evident that how salient it is to take every step in a dexterous manner that shall not just augment the sales of an organisation but at the same juncture, it is expected to enhance its conversion rate as well. Business personnel has to think and act out-of-the-box to ensure that efforts don’t go in vain but rather they help them to churn more and more profit-making avenues.

SEO Content India, a content marketing company in India, offers a number of services such as academic writing services, product description writing services, business proposal writing services, etc. among others.