Last week we talked about measuring where our leads come from.
The next critical number for your business is your Conversion Rate
This is the number of leads that are converted into sales.
Our conversion rate can be over or under-estimated if it is not measured.
In a retail situation, people counters need to be installed at all entrances to your business. These are relatively cheap and can come with programs to measure your conversion rate at different times of the day. This is useful to know when we have different sales people on each shift.
At the end of each day the number of sales transactions are divided by the number of people entering your premises.
In one retail client of mine with multiple retail outlets, we know what this figure should be and it is a Key Performance Indicator (KPI) for our store managers.
In a B 2 B situation, the number of sales are divided by the leads from all sources are counted each month. Conversion rates should be measured for each sales person to identify where sales training is required. Conversion rate from lead to quote and from quote to sale should be measured to know what is working and what isn’t.
Conversion rate is a critical KPI for your business, if you are want to increase your sales.
If you would like to know how measuring conversion rates for your business will increase your sales, contact me at firstname.lastname@example.org