Sales conversion or customer acquisition, shows the number of leads that converted to customers. Though, it basically shows the effectiveness of your sales team in converting leads into new customers, this is a very important metrics for the marketing team as well, in analyzing the quality of the leads.
How to calculate Customer Sales conversion?
If the number of leads generated in a month is 100. 10 out of those leads are converted as active customers. Then the customer acquisition or sales conversion rate is 10%
If this metrics is high, then it means that your sales and marketing team are on the right track. A low conversion rate could be due to various reasons. The sales team needs to convert more or the marketing team needs to bring in more quality leads. It also denotes that the Customer acquisition costs are on the higher side and you need to rework your marketing strategy. A low conversion rate is something that needs to be thoroughly investigated. Identify where lies the leak in the sales pipeline. It could be that you need to rework your – pricing model, marketing strategies, sales team expertise. Or, it could even be the workflow of your website. The right choke points need to be identified. Targeted strategies needs to be deployed to have more conversions.
Sales Conversion is very crucial as growth of the organization is directly proportional to the sales. Hence, take corrective measure based on hardcore data. Make your marketing activities and strategies flexible enough to do away with the activities that are not productive and to adopt targeted strategies that will help in driving more sales to your organization.