Improve your lead-to-customer conversion rate by tracking this simple KPI and following five guaranteed strategies for closing.
The only way to know how well your sales funnel is performing is by calculating your lead-to-customer conversion rate, which may also be called a sales conversion rate or lead conversion rate. This metric tells you what percentage of your leads became customers and turned into sales.
The numbers used in this metric, which is a key performance indicator (KPI) of a company’s sales team, should include qualified leads, not all leads. This is because tallying in all leads will not only give you a poor rate, but unhelpful data. Instead, begin your calculation with leads that you know have promise, particularly exclusive leads from HBWLeads.
How to Calculate the Lead-to-Customer Conversion Rate
The lead-to-customer conversion rate is the ratio of qualified leads that convert to customers in a given period, to the number of qualified leads in total, in the same period.
When coming up with the result, you should also consider what you call a conversion, but for the insurance industry, let’s call it a lead who turns into a customer.
An Example of Calculating Lead-to-Customer Conversion Rate
Josh is an Auto Insurance salesman who used HBWLeads to generate 50 exclusive leads last month. 30 of those leads became customers.
Divide 30 by 50, then multiply that by 100 to get his conversion rate.
Using the calculation, we can determine that Josh’s lead-to-customer conversion rate last month was 60%. That might seem like a high rate, but remember that Josh is starting with exclusive, double-verified leads from HBW Leads, so the people he’s contacting have already said they want to take the next step.
How to Improve Your Lead-to-Customer Conversion Rate
1. Personalize your pitch to your customer.
Personalize your selling techniques, because no two clients are the same. For this reason, you should research every client before initiating the first call, and if you can’t, get to know them more within the first few minutes of your call.
2. Ask open-ended questions.
For example, “what do you like least about your current policy?” or “why are you open to switching insurance providers?” Yes and No questions dead-end conversations.
3. Shoot for loyalty.
Loyal clients are a rare breed. They spend more on your policies, leave positive online reviews, and refer their family and friends to you. So don’t think of your leads as one-hit wonders; consider the long term.
4. Follow up.
They say it takes five times for a person to see an ad before buying, which isn’t so different from sales. If they don’t bite on the first call, show them you’re interested in addressing all their concerns.
5. Offer an incentive.
No one can pass up great deals on things they need — especially exclusive insurance leads. Offer limited-time discounts or insurance bundles.
Stop throwing away your hard-earned money on poor quality and hyper-competitive leads. Start increasing your lead-to-customer conversion rates instead!
Our leads allow you to spend less time prospecting and more time doing what matters – like selling policies. Learn more.