Conversion rates measure the number of people who do something you want out of a total population, for example the number of people who make a purchase out of the total number of people who enter a store, and are commonly used by marketing and sales departments to evaluate the success of an enterprise’s funnel.
What are conversion rates?
Conversion rates allow you to evaluate the effectiveness of your sales and marketing efforts. By benchmarking and tracking your ability to, for example, convert visitors into leads or leads into closed deals (or “wins”), you can optimize your methods over time.
Conversion rates generally consider visitors, leads, and wins.
- A visitor is someone who visits your location.
- A lead is a visitor who has indicated they might be interested in your product or service. Leads can be broken down into MQLs (marketing-qualified leads) and SQLs (sales-qualified leads). SQLs are considered more quickly to convert into wins than MQLs as they have done something more indicative of a sale than an MQL.
- A win is a closed deal resulting in a sale.
How do you calculate conversion rates?
The overall conversion rate, presented as a percentage, can be calculated as follows:
(Wins/Visitors) × 100
However, you can replace “visitors” with a smaller population (leads, MQLs, SQLs, etc.) to get information about the effectiveness of each stage of your sales funnel.
Why are conversion rates important?
Conversion rates are important key performance indicators (KPIs) for any business to track. While conversion rates are easy to track for online businesses, this has not always been the case for brick and mortar locations.
Solink brings this ability to all businesses by providing people and traffic counting technology, which combined with POS data can inform you of your conversion rates. You can see all this information on your dashboard, which Solink is constantly updating.