Grow Your Business - Conversion Rate

Submitted by:

A business must continue to grow to be successful. So many times we focus on the end result and don’t have a plan on how we are going to get there!

I continue my 5-part series on Growing Your Business by focusing on turning the leads your already have into revenue producing clients! Let’s recap how the activity vs. result formula works:

1. Number of Leads: the total number of potential buyers that you contacted or that have contacted you in the past year.
   
2. Conversion Rate: The percentage of people from your leads who bought your product or service.
   
   Number of Leads x Conversion Rate (activities) = Number of Customers (result)
   
3. Number of Transactions: The average number of times your customers buy from you over a 12 month period.
   
4. Average $$ Sale: The average amount purchased by your customers; add up your total sales and divide by the number of sales.
   
5. Profit Margin: This is the percentage of each and every sale that's profit. In other words, if you sold something for $100 and $25 was profit, then you've got a twenty-five percent margin.

Conversion Rate: The second activity of this formula is Conversion Rate.

Conversion Rate is basically the percentage of leads or prospects that you convert to actual sales or customers. Once you get people in the door or into your database, your job is to now turn those prospects into actual sales or paying customers. As an ActionCOACH, I have over 80 different conversion rate strategies to pull from to assist clients. Here is a sample:

• Sales Scripts: Whether it’s answering the phone, setting up a voicemail, cold calling a prospect, or prepping your elevator speech, a script provides consistency for your marketing message. Introduce the script to your team to ensure this consistency moves throughout the organization. But be sure to keep the individual person in mind when writing your scripts! A script should be an outline; each individual should still bring in their own personality.
  
• Testimonials: Ask your current and past customers to rave about you! Post direct quotes from your raving fans about how good you are on your website and other print marketing materials. Testimonials show your future customers that they are not the first to buy from you; that it’s OK to say YES! A great testimonial can also reassure a person’s decision to buy.
  
• Payment Plans: Perhaps you’ve heard the price objection…“I can’t afford it.” A great way to convert this objection to a sale is to create a payment plan. Allow your client or customer to pay monthly or in easy pay installments instead of one lump sum. This is a great way to make it even easier for your prospect to buy and to then become a raving fan that refers others to you!
  
• Educate on Value, Not Price: Focus on the value you provide to your target market; what problems do you solve? Explain to your prospects what makes you unique in your industry and emphasize value….not price. Most people will be willing to spend money on a product or service that will do exactly what they want rather than spending less on something that will only do half the job.

Pamela Muldoon, Certified ActionCOACH Business & Executive Coach, has over 20 years experience in communications, sales, marketing, training & development. She has an extensive background in such industries as Radio Broadcasting, Theatre Arts, Travel and Financial Services.

Aligning people on all levels of an organization, Pamela Muldoon helps leaders unleash hidden potential within themselves and their teams. She empowers individuals to identify and create their own customized path to success, achieving a life of wealth and abundance that includes a healthy life balance. 

Pamela holds a BA from the University of Wisconsin-Eau Claire and a Certified Project Management certification from the University of St. Thomas. A community advocate, Pamela serves on the Board of Directors for the Lake Minnetonka Chamber of Commerce, as the Lead Ambassador for the TwinWest Chamber of Commerce, and is a member of the American Society of Training & Development-Twin Cities Chapter. Pamela is a public speaker on business education, an author and teacher. She has taught Radio Sales & Marketing to students at Brown College in Mendota Heights where she also received her Radio Broadcasting Certification. She is also a member of the Graduate program for the National Speakers Association-MN Chapter.

ActionCOACH Business Coach
763.670.7238