In the business management process, there are several metrics that measure the success or failure of sales. One of the most important is the conversion rate, which measures the efficiency of all strategies designed to attract customers.
Using these metrics, it is possible to understand consumer behavior in the business and how they move from being mere users to customers in the sales flow. Although 26% of companies do not calculate or use this rate , according to RD Station’s 2024 Sales Panorama , it is essential for the success of business sales.
So, let’s explain what conversion rate is, its importance and how it can be used to improve your company’s performance. Continue reading the next few lines!
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What is conversion rate?
Conversion rate is a metric that aims to measure the success of marketing and sales strategies. It represents the percentage of turkey whatsapp number data visitors or generated leads that actually convert into customers .
In other words, it analyzes all customers who accessed a page and performed the intended action – the so-called conversion . And, with that, they started to integrate and advance in the company’s sales funnel.
Furthermore, this metric can be related to other indicators, allowing a broader view of the business and enabling more assertive strategies.
How important is it to calculate the conversion rate?
From the sales funnel or marketing funnel, a journey is created for customers to have contact with the brand through campaigns, advertisements or content.
As the consumer progresses through the stages, there are the ultimate guide to crafting a sales pitch that sells that encourage conversion, so that the consumer becomes a consumer .
The success of this process is measured based on the conversion rate. In addition, together with the sales funnel, it also indicates at what points the consumer gave up on the journey or converted.
But, in addition to this, there are other points that make the conversion rate an essential metric for companies:
- Resource optimization : when analyzing the results from this calculation, you can choose to assertively reallocate resources to campaigns that yield better results, for example.
- Improvement in acquisition strategies : based on the results obtained in the conversion rate, those responsible can analyze the strategies created and understand which ones work or not, in order to seek new approaches, change information and recalculate the route.
- Identifying errors and failures in the process : in the sales funnel, it is possible to identify possible problems at each stage. This makes it difficult to capture leads, impacting the conversion rate. Therefore, these failures are and corrected for new tests.
- Identifying the target audience : the conversion rate also provides very important insights for personalizing audiences and customer behavior . After all, you need to know and understand them, aiming for conversion.
How do you know if the conversion rate is good?
Once you have the conversion rate numbers, you need to analyze the data strategically and impartially for successful business management . But how do you cyprus business directory if the conversion rate is good?
The first step in the analysis is to understand that there is no ideal conversion rate. After all, this number varies greatly for each segment and considers different factors , such as: costs to acquire leads, product price, time to conversion and business needs.
Therefore, it is to carry out a competitor analysis to understand. What the average conversion rate is in the segment . With this information, the next step is to analyze each stage of the funnel and understand what the indicated moments are for in the consumer’s purchasing journey.
For this complete analysis, each stage will have a metric that needs to be evaluated and optimized to indicate the success of the business – in addition to the result. Check it out:
Attraction: number of users
In the attraction phase, the key is to observe the number of users attracted to visit or learn about the brand . At this point, we are talking about the top of the funnel – that is, the user does not yet have a clear intention to purchase.
Therefore, what matters here is observing the number of visitors attracted to better understand the company and the solutions presented.