Definition
The percentage of visitors or leads who complete a target action (purchase, signup, booking). A key indicator of how well your funnel performs.
Detailed Explanation
Conversion rate measures the effectiveness of your sales process. It's the ratio of conversions to total opportunities.
Formula: (Conversions / Total opportunities) × 100
Industry Benchmarks:
- E-commerce: 2-3%
- SaaS: 3-5%
- B2B Services: 5-10%
- Real Estate: 1-3%
Factors impacting conversion rate:
- Response time (391% improvement with < 5 min response)
- Qualification quality
- Offer relevance
- Process friction
- Trust and social proof
How to improve your conversion rate:
- Automate initial response
- Qualify before human follow-up
- Personalize communication
- Reduce process steps
- Continuously A/B test
