Increasing the conversion rate in the sales funnel is decisive for the success of any business, after all, this metric is an indicator of the efficiency of the entire process of the company. It is essential to effective strategies to improve it, such as market automation tools, optimized landing pages, CRM, among others. So, learn, now, how to deal with the prospect on the purchase journey, and thus, increase conversion at all stages within the sales funnel.
What is and how to calculate the conversion rate in the sales funnel
The sales funnel is a way to view, track and guide the customer’s entire journey through the purchase process. In this way, it is possible to classify the customers in the top, middle and bottom of the tunnel. Therefore, the leads at the top of the funnel are potential customers who have created awareness of the company’s services or products
In turn, the funnel medium has leads that already have a relationship with the company, but are not determined to make the purchase. Therefore, the funnel bottom is the final stage of the sales process, when the client is ready to make the purchase.
For this reason, the conversion rate of the sales funnel doesn’t not refer only to shifts of leads into customers, but the adjustment that takes place in all funnel stages. That is, it is substantial to calculate and analyze the number of leads who went from the top of the funnel to the middle of it, as well as from the middle to the bottom and, eventually, to the sale.
How to calculate the conversation in practice
Therefore, to evaluate the sales conversion rate and have an analytical outlook to develop efficient CRM, digital marketing and automation strategies, it’s significant to calculate the conversion percentage between each stage of the funnel.
To perform the calculations, divide the number of leads in step A by the number of those in step B, and then multiply by 100. To better understand, take a look at this practical example: a higher education institution attracted 50 k prospects at the top of the funnel, took 30 k of these to the middle of the funnel, then 10 k leads to the bottom of the funnel and, finally converted to 3k new registrations.
Thus, the calculations are as follows:
- Conversion to the funnel medium: 30k (converted leads) 50k (leads at the top of the funnel) x 100= 60%
- Conversion to the funnel bottom: 10 k (converted leads) 30 k (leads in the middle of the funnel) x 100=30%
- Conversion rate of the bottom of tunnel into sales: 3k (new registrations) 10 k (leads at the bottom of the funnel) x 100 =30%.
- Sales conversion rate: 3 k (new registrations) / 50k (attracted leads) x 100 = 6%.
Thus, by monitoring the rate of each stage of the funnel it’s achievable to assess the conversion competence amidst all stages of customer's journey, in addition to ascertaining the power of accomplishing prospects in customers.
You already know what it is and how to calculate the conversion rate, so, you certainly recognize why it is so important to track this metric. So understand now, how to increase your company’s ability to atrack potential customers and effectively make sales.
How to increase the conversion rate in sales funnel
Increasing the conversion rate for all stages of the funnel is crucial to the sales team success and demonstrates excellent performance of the marketing staff.
CRM Wager on a CRM strategy
The CRM strategy uses a software to gather all the information about customers and, in this way transforms customers into the business focus. Therefore, by adopting the CRM tool it’s possible to get to know the leads better and to build an extremely efficient marketing automation, delivering interesting and quality content to the customers in order to guide them in the funnel.
Integrate Inbound Marketing with the CRM tool
Mkt4edu uses a CRM software that allows access to the buying habits and the leads’ behavior conceding a basic analysis strategy for Inbound Marketing. This way, it’s possible to count on the qualified leads’ attraction, which is fundamental to increase the sales conversion rate.
Invest in marketing automation tools
With marketing automation it’s conceivable to bring together, in just one place, the process of capturing leads, creating campaigns, selling actions with the existing base and automating the sales funnel. In such a way, with the automation, Mkt4edu is able to accurately accomplish customer’s journey process through optimized landing pages, chatbots and other means of capturing leads information.
After attracting potential customers, the marketing automation starts the nutrition leads’s work in a segmented way in order to begin the qualification process at each stage of the sales funnel. So, with the marketing automation, it’s possible to achieve the goal of guiding qualified leads through the next steps of the funnel to purchase.
Mkt4edu creates automated flows that work with contacts individually at each stage of the sales funnel until reaching the goal of taking the prospect to the next step, as well as increasing the conversion rate from work done with the Inbound strategy Marketing and CRM application.
All things considered, we make it clear what is and how to calculate the conversion rate in the sales funnel, added to the work required to guide the prospect in the purchase journey and boost the amount of leads converted into sales.
Now, arrange a meeting with Mkt4edu and boost your company’s sales conversion rate!