How To Calculate Sales Conversion Rate And Improve It - CommBox

How To Calculate Sales Conversion Rate And Improve It

How To Calculate Sales Conversion Rate And Improve It

E-commerce portals and company websites remain at the centre stage with the advent of digital marketing. Every marketer holds the task to optimize their brand for attracting quality leads and converting them into sales. Whether you are a seasoned professional or just starting your E-venture, understanding and optimizing conversion rate is critical to your company growth. It fundamentally guides marketers to improve their website performance to attract more sales.

Key Performance Indicators (KPIs) indicate how effectively a company is reaching its goals. Conversion rate is an essential KPI or metric to evaluate how many leads are converting to sales. Conversion rate optimization ensures a structured approach to facilitate the website performance. There exist a thousand buzzwords and vital metrics on conversion rate and its improvement. Through this article, we will guide you in calculating the sales conversion rate. It will offer beneficial marketing insights and provide some tips to boost those numbers. 

So, without any further ado, let us get you market-ready. 

What is the Sales Conversion Rate?

The Sales Conversion Rate metric refers to the assessment of your sales team’s efficiency to convert new leads into customers. It proves to be a vital metric to align your marketing and sales team as both teams utilize it to determine quality leads. Once calculated, brands can leverage professionally tailored and stunning templates from to present their client reports.

The responsibility of lead generation falls in the marketing department that engages customers with attractive tactics. For example, the marketing team can organize a conference sponsorship to produce sales-ready prospects. Once the marketing department qualifies the leads, the sales teams own the task of converting them into paying customers. 

For example, if a website receives 300 leads in a month and has 150 sales, the conversion rate would be 100 divided by 300, or 50%.

How to Calculate Sales Conversion Rate?

Calculating the Sales Conversion Rate is easy. All you have to do is divide the number of sales on your online platform by total leads. For percentage, further, multiply the number by 100. Let us portray this more easily for you. 

Sales Conversion Rate= (Number of Sales / Number of Leads) *100


Sales Conversion Rate= (Number of Conversions / Number of Qualified Leads) *100

In most marketing-sales funnels, conversion rates get tracked by measuring the qualified leads compared to new wins. Between each sales funnel stage, a conversion should happen. The lead rate moving from one to the next is called the sales conversion rate. Let us understand the concept of calculating the sales conversion rate through a simplified example. 

For instance, you made 30 sales in the last month with 100 leads in your bank. Thus, the formula becomes:

(Number of Sales / Number of Leads) *100

(30 / 100) *100 = 30%

So, your sales conversion rate comes out to be 30%. Sales conversion rates vary tremendously depending on your industry, website traffic, business, and products. The ultimate goal of every marketing campaign is to not only attract customers but induce sales with it. Hence, sales conversion metrics pose critical to assess the Return on Investment (ROI) of your marketing campaigns. 

What are some ways to improve your Sales Conversion Rate?

What are some ways to improve your Sales Conversion Rate?

Spent huge bucks on making the best websites? Led marketing campaigns but not seeing the result? Lack the intrinsic motivation due to the generation of high leads but the low rate of sales? Well, leave all your worries to us. This section will highlight some key points for every brand to optimize their sales conversion rates through the sales funnel. 

Step 1: Increasing Conversion in the Awareness Stage

Step 2: Increasing Conversion in the Consideration Stage

Step 3: Increasing Conversion in the Preference Stage

Step 4: Increasing Conversion in the Purchase Stage

Step 5: Increasing Conversion in the Loyalty Stage

Additional Tips:

Wrapping It Up

By evaluating your sales conversion rate, businesses can get splendid insights into what works with their design and the effectiveness of their marketing campaigns. Once identified, it is time for them to take action and optimize their websites and marketing tactics. By following these golden tips mentioned above, you can boost your conversion rates in no time. 

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