Optimizing Lead Conversion: Streamlining the Sales Pipeline
Business owners who want to boost their business’s valuation should consider how they can improve lead conversion, as it shows prospective buyers that operations are purposeful and efficient.
The success and value of a business depends on its ability to turn potential customers (or leads)into actual buyers. Optimizing your lead conversion strategies increases revenue by increasing the efficiency of your sales pipeline. Use this article as a starting point for your own analysis of your sales pipeline.
Published 11/18
Questions to consider when optimizing your sales process for lead conversion
1.
What percentage of inquiries convert into customers?
If only a small percentage of your leads are converting, you may need to re-evaluate your sales process or focus on targeting more qualified leads. A good conversion rate is largely industry dependent – one study found that the average conversion rate from lead to sale is about 1.7%. Research what is a healthy range for your own industry and then compare that against your own. If yours is low, identify where customer drop-off is occurring and then create plans to address where your sales pipeline is leaking.
2.
Are you prioritizing high-quality leads in your marketing and sales strategies?
Not all leads are created equal. Prioritizing time and resources toward high-fit potential customers maximizes the efficiency of your sales efforts. Work with your sales and customer service team to ensure that they are focusing efforts on the kind of leads that typically lead to a sale, and make sure your marketing is targeting demographics that match your best customers. When you focus on the highest quality leads, your conversion rate will rise and the costs associated with each sale will decrease.
3.
Which customer touchpoints are most effective?
It’s crucial to understand where your leads are coming from and which touchpoints contribute most to conversions. Is your website the key driver of leads? Or perhaps social media interactions and in-store experiences are your strongest conversion tools? Knowing the answer helps optimize your marketing spend and attention. For example, if customer service interactions are closing more deals than your website, you might want to focus more on training your team or optimizing your customer service processes.
4.
What percentage of your business comes from word of mouth?
Word of mouth is often an underestimated part of lead conversion, and is often the most fruitful marketing strategy. Businesses with strong reputations often see a steady stream of leads from referrals which have a higher conversion rates, which then turn into more referrals and more sales. Analyze data related to how leads first learn about you and take special notice of how many customers come by way of word-of-mouth, and encourage satisfied customers to refer others to create more “warm” leads. Consider implementing a referral program to drive word-of-mouth lead generation, and prioritize your sales strategy for these types of leads.
5.
Are your customer interactions personalized?
Customers expect personalized interactions. Make sure your sales team uses CRM systems to track customer preferences and past interactions, as this can help you tailor your communication to each prospect. For example, sending a follow-up email that directly addresses a prospect’s specific needs shows attentiveness and care.
6.
Are you aware of friction points in the sales pipeline, and are you working to resolve those issues?
The first contact a lead has with your business can make or break a sale, though there can also be other friction points—such as long response times, unclear communication, or complicated processes—that make it difficult for leads to convert. If your sales and customer service teams are not already tracking trends in the conversion process, make sure to implement data collection and review processes to identify friction points. Then each team can problem solve those areas through training.
7.
Do you communicate brand values consistently to create a unified marketing message?
Your value proposition should be clear and consistent across all touchpoints—whether it’s through your website, emails, customer service calls, or social media. If there’s a disconnect in how your offerings’ value is communicated, leads may become confused and disengage. Develop a strong message that clearly explains why your product or service is superior, and ensure it is communicated in all follow-ups and interactions.
Optimizes sales pipelines help businesses thrive
Bridge provides expert guidance to small businesses that are looking to optimize aspects of business operations like sales pipelines and conversion rates. Our experts provide personalized plans tailored for each business and each business owner’s personal goals – whether that be optimization and revenue growth or preparing for a sale. Consider scheduling a free consultation with a Bridge advisor to discuss your own goals going forward.
