SOLVE
Conversion rates, is the process of reaching out to the right target audience, presenting them with the right solution and getting them to take the action you want them to take. These could range from subscribing to buying from your website.
Computing for your conversion rate is easy. Once you’ve clearly defined what a conversion is, you now know what to measure and how to compute your lead conversion rate. Conversion rates are equal to the total number of conversions divided by the number of leads and then multiplied by 100.
If your conversion is defined as leads who become new customers, then the formula should look like this:
Lead Conversion Rate = Total No. of New Customers / Number of Leads * 100
So, if you had 100 leads, and 20 of them became new customers, your lead conversion rate is 20%. If there is more than one conversion action that you’re tracking, the results can go over 100% due to each interaction can have multiple conversions.
The standard conversion rate varies across industries. With industries having various targets and conversations, no single standard can be used. These could range from different products, source , information, etc.
In most cases, you should also expect traffic coming from the top of the funnel to be a lot higher than those further down the funnel to become Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL).
Visitors that become MQLs and SQLs provide larger opportunities they have been identified as leads who have engaged with you and are interested in your product or service. On average, SQL conversion rates are higher than MQL conversion rates; the SQL is in the buying cycle while MQLs are not ready for the buying stage just yet.
