What should be the conversion rate in sales?
Posted: Sun Dec 22, 2024 6:57 am
The optimal indicator is determined by the company's characteristics, its industry, sales volumes and partners. For clarity, let's look at examples. Let's assume that a metallurgical plant has only 5-6 regular customers. At the same time, the company does not seek to increase the number of clients. Its strategy is focused on establishing long-term mutually beneficial relationships.
In another case, the owner of a startup with a small budget, which produces women's shoes, sets the following goal: to attract attention and increase the number of subscribers russian business email list through advertising on social networks. In this context, high conversion is a key indicator, since it allows you to estimate the "cost" of each member of the group.
What should be the conversion rate in sales?
Source: shutterstock.com
What is considered a good sales conversion? There is a certain average standard - 10%. However, it should be noted that this value is not universal. Let's consider normal conversion rates in different areas of business:
Websites offering legal services typically have a conversion rate of 3-4%.
Online stores selling household and electronic appliances can achieve conversion rates of 5-7%.
Programs for ordering a taxi or food delivery have a higher conversion rate – from 25 to 30%.
In the case of supermarkets and grocery stores, the conversion rate can be at the level of 90-95.
Sales conversion in marketing is considered a key indicator of business success, so it is extremely important to correctly determine the norm, adapted to the specifics of a specific area of activity. Let's highlight three main stages of determining the optimal indicator:
Identify the average sales conversion rate for your company's products and determine the factors that influence this rate.
Study similar data from your competitors to track your performance in comparison to theirs.
Following the established norm with subsequent adjustment of the value.
Read also!
"Marketing Tips: How to Show That Your Product is the Best"
Read more
Reasons for Low Sales Conversion
The conversion rate depends on many factors, including the specifics of the product, corporate policy, and errors made in website development. Let's look at the most common reasons for low conversion:
Usability issues . The website is not configured for smartphones, has an overly complex interface, broken links, long navigation chains, broken pages, and takes a long time to load.
Poor product presentation . When presenting, you need to focus on the needs of the target audience. Let's look at an example of an erroneous description: in the product card for a set of wrenches, the manufacturer mainly noted the design of the handle. It is quite obvious that potential customers want to know more about the technical characteristics of the tools, rather than their appearance.
High Cost : If a product is rarely purchased and cost objection handling strategies are not working, the product is likely priced significantly higher than similar competitors.
Low cost . Reduced cost negatively affects the prestige of a premium product in the eyes of the consumer.
Reasons for Low Sales Conversion
Source: shutterstock.com
Declining purchasing power and seasonality of goods . Business is affected by external factors that are difficult to control. Various social and economic circumstances can create a situation in which your product becomes less necessary for consumers. In such cases, it is important to determine how long this period will last.
Untargeted traffic. When you attract people to your online store through ads that describe a product that is no longer available, you risk losing potential customers. The same applies to the situation when the content created for your audience does not lead to sales. In such cases, you need to go back to the hypothesis about attracting visitors and take a closer look at the demographics of your potential customers.
Weak handling of objections . If managers do not take the initiative to close objections, and clients feel a lack of attention, this can lead to a decrease in sales. The introduction of a motivation system dependent on the achievement of KPIs will become a stimulating factor for the staff.
Attracting an audience to a web resource is a fairly simple task. However, the issue is not only in the number of visitors, but also in their conversion into buyers. Average traffic with high conversion is much preferable to a large number of users who do not bring profit.
The root cause of the problem is likely related to the marketing strategy. At the stage of analyzing the target audience, the company could have calculated that, for example, a shoe brand would be popular among young people under 25. However, due to the classic design and emphasis on product reliability, this segment does not show interest in the product. The older generation responds positively to advertising. It turns out that the site is not visited by potential buyers.
It is important to promptly identify the error and take the necessary measures. You may consider the following options:
Revise the target audience, adjusting it towards a more mature audience.
Adapt the product to the preferences of the originally planned audience.
Revise the brand positioning strategy by highlighting other characteristics of the shoe that may appeal to younger people.
In another case, the owner of a startup with a small budget, which produces women's shoes, sets the following goal: to attract attention and increase the number of subscribers russian business email list through advertising on social networks. In this context, high conversion is a key indicator, since it allows you to estimate the "cost" of each member of the group.
What should be the conversion rate in sales?
Source: shutterstock.com
What is considered a good sales conversion? There is a certain average standard - 10%. However, it should be noted that this value is not universal. Let's consider normal conversion rates in different areas of business:
Websites offering legal services typically have a conversion rate of 3-4%.
Online stores selling household and electronic appliances can achieve conversion rates of 5-7%.
Programs for ordering a taxi or food delivery have a higher conversion rate – from 25 to 30%.
In the case of supermarkets and grocery stores, the conversion rate can be at the level of 90-95.
Sales conversion in marketing is considered a key indicator of business success, so it is extremely important to correctly determine the norm, adapted to the specifics of a specific area of activity. Let's highlight three main stages of determining the optimal indicator:
Identify the average sales conversion rate for your company's products and determine the factors that influence this rate.
Study similar data from your competitors to track your performance in comparison to theirs.
Following the established norm with subsequent adjustment of the value.
Read also!
"Marketing Tips: How to Show That Your Product is the Best"
Read more
Reasons for Low Sales Conversion
The conversion rate depends on many factors, including the specifics of the product, corporate policy, and errors made in website development. Let's look at the most common reasons for low conversion:
Usability issues . The website is not configured for smartphones, has an overly complex interface, broken links, long navigation chains, broken pages, and takes a long time to load.
Poor product presentation . When presenting, you need to focus on the needs of the target audience. Let's look at an example of an erroneous description: in the product card for a set of wrenches, the manufacturer mainly noted the design of the handle. It is quite obvious that potential customers want to know more about the technical characteristics of the tools, rather than their appearance.
High Cost : If a product is rarely purchased and cost objection handling strategies are not working, the product is likely priced significantly higher than similar competitors.
Low cost . Reduced cost negatively affects the prestige of a premium product in the eyes of the consumer.
Reasons for Low Sales Conversion
Source: shutterstock.com
Declining purchasing power and seasonality of goods . Business is affected by external factors that are difficult to control. Various social and economic circumstances can create a situation in which your product becomes less necessary for consumers. In such cases, it is important to determine how long this period will last.
Untargeted traffic. When you attract people to your online store through ads that describe a product that is no longer available, you risk losing potential customers. The same applies to the situation when the content created for your audience does not lead to sales. In such cases, you need to go back to the hypothesis about attracting visitors and take a closer look at the demographics of your potential customers.
Weak handling of objections . If managers do not take the initiative to close objections, and clients feel a lack of attention, this can lead to a decrease in sales. The introduction of a motivation system dependent on the achievement of KPIs will become a stimulating factor for the staff.
Attracting an audience to a web resource is a fairly simple task. However, the issue is not only in the number of visitors, but also in their conversion into buyers. Average traffic with high conversion is much preferable to a large number of users who do not bring profit.
The root cause of the problem is likely related to the marketing strategy. At the stage of analyzing the target audience, the company could have calculated that, for example, a shoe brand would be popular among young people under 25. However, due to the classic design and emphasis on product reliability, this segment does not show interest in the product. The older generation responds positively to advertising. It turns out that the site is not visited by potential buyers.
It is important to promptly identify the error and take the necessary measures. You may consider the following options:
Revise the target audience, adjusting it towards a more mature audience.
Adapt the product to the preferences of the originally planned audience.
Revise the brand positioning strategy by highlighting other characteristics of the shoe that may appeal to younger people.