Learn to calculate your lead to sale conversion rate to determine which marketing strategies work best for your business.
Becoming a successful insurance agent takes hard work. And sometimes it might seem that the rewards are minimal. You have good lead generation tactics, but they don’t seem to be converting like you would expect or hope. The thing is, if you aren’t watching your lead to sale conversion rate, you don’t really know how well (or not) your efforts are working.
Nurturing leads is every bit as important as generating leads, and this process lets you understand whether your campaigns are worth the investment. After all, you want your efforts to boost your revenues. If they aren’t working, at least you know what you need to change.
So, how can you measure success? How will you know what to put more effort into and what to let go of? Your lead to sale conversion rate can help.
What is a lead to sale conversion rate?
Your lead to sale conversion rate is the process of evaluating your effectiveness at turning leads into clients. This metric determines your ability to attract prospects successfully and execute lead nurturing strategies.
In most cases, your marketing strategies are responsible for elevating your conversion rate. When you attract quality leads, converting them becomes a much simpler task. Remember, capturing low-quality leads will lead to a negative impact on this metric.
Computing your conversion rate is quite easy. All you have to do is divide your sales frequency by your total leads per platform. Then, to get the percentage, multiply the number you get by 100.
The mathematical equation looks like this:
Conversion Rate = (Sales Frequency / Number of Leads)*100
Let’s say you run Facebook ads that generate 500 leads. After getting in touch with your prospects, you successfully sell one policy to 25 of these people. In this scenario, you would compute the conversion rate this way:
- Conversion Rate = (Sales Frequency / Number of Leads) *100
- Conversion Rate = (25/500) *100
- Conversion Rate = 0.05 *100
- Conversion Rate = 5.00%
Let’s try another example. Let’s say you run Google ads that attract 10,000 prospects. After the ad duration, you sell one policy to 10 individuals. In this case, you can calculate the conversion rate like this:
- Conversion Rate = (Sales Frequency / Number of Leads) *100
- Conversion Rate = (10/10000) *100
- Conversion Rate = 0.001*100
- Conversion Rate = 0.1%
Given the examples above, the Facebook ad turned out more effective than the Google one. With this information in your hands, you can decide if you want to continue with your Google ads or transfer the budget to your Facebook efforts.
Remember, several factors affect this conversion rate, including the industry, your agency, and your products. Ultimately, you should create strategies not only to attract prospects but also to encourage sales. For this reason, your conversion rate is essential in evaluating your return on investment (ROI) for every campaign.
5 Ways to improve your conversion rate
If you’re not satisfied with your conversion rate, don’t worry. There are various ways to boost it, like the strategies listed below:
- Social media presence: With the right social media selling strategies on your side, you can use sites like Facebook, LinkedIn, and Twitter to your advantage. When using these platforms, you can use cost-effective tactics to improve your conversion rate.
- A powerful call to action (CTA): A well-written call to action can guide potential clients on what to do next. Without a clear CTA, you might miss out on qualified leads that otherwise would have entered your sales funnel.
- Email follow-ups: Educating prospective customers can be the game-changer you need to hit your targets. One of the fastest, most convenient ways to do this is to send automated — but personalized — emails.
- Optimized website: Search engine optimization (SEO) can do wonders for your lead generation efforts. While optimizing your website and content takes time, the results are worth it.
- Referral program: One of the reasons you shouldn’t cut ties with clients after a sale is so they can become repeat customers, and you can ask them for quality referrals. Try incentivizing loyalty from clients to encourage them to send leads your way.
Nothing can boost your lead to sale conversion rate as much as capturing quality leads who need your products and services. While your social media presence, CTA, email follow-ups, optimized site, and referral program will work, you need guaranteed high-quality leads to stay ahead of the competition.
Buying high-quality, exclusive, and double-verified leads from reputable providers is guaranteed to improve your conversion rate.
If you have yet to perfect the art of finding, capturing, and nurturing prospects, it’s time to buy leads from a reliable provider. At HBW Leads, you can get high-quality, exclusive, and double-verified leads anywhere in the market. Get your Personalized Lead Package or call 866-496-1496 now for a free consultation.