Sales Conversion: What's a Good Rate in 2023? Anne Williams March 28, 2023
What does it take to get more sales-ready prospects in today's competitive landscape? Is there a magic number that companies should aim for to improve sales conversion?
Recent studies have revealed that the average sales conversion rate across all industries stands at 2.35%. But don't be fooled by this number, as the truth about sales is far more complex.
With a multitude of factors influencing sales conversion rates, such as industry type, product category, and target audience, determining what constitutes a good sales conversion rate metric can feel like solving a mystery.
Join us as we explore the intricate web of factors that influence sales conversion rates in 2023, and uncover the secrets to achieving a good rate that will set your business apart from the rest.
What does conversion mean in sales?
The ultimate goal of sales is to capture qualified leads and generate sales-ready prospects. This is done by getting quality leads and converting leads into paying customers.
In order to measure sales conversion, businesses often use a metric known as the conversion rate. This metric represents the percentage of prospects who take the desired action out of the total number of prospects who were presented with the opportunity to do so.
For example, you can calculate the sales conversion rate like this—if a business had 100 website visitors and 10 of them made a purchase, the conversion rate would be 10%.
How conversion rates change over time
In 2023, we can expect to see continued shifts in consumer behavior and technology advancements that may impact conversion rates.
For example, with the growing popularity of both mobile phones and devices and the increasing importance of voice search, businesses may need to optimize their websites and marketing strategies to cater to these trends while increasing conversion further. There are numerous mobile sales tools that can help you boost your reach.
Additionally, the ongoing COVID-19 pandemic has accelerated the adoption of online shopping, but as the world returns to some semblance of normalcy, it remains to be seen how these changes will affect conversion rates in the long term.
What is a good sales conversion rate?
1. Sales conversion by industry
Different industries tend to have different average conversion rates.
For example, e-commerce websites may have higher conversion rates than B2B businesses, as customers tend to be more motivated to make a purchase when shopping online.
This is because there are fewer clicks required in the process, and the checkout process tends to be easier and more user-friendly.
WordStream’s study showed that the average conversion rate for e-commerce websites is around 2.86%, while B2B businesses may see conversion rates closer to 2%.
Image. WordStream's study showing search conversion rate distribution.
2. Sales conversion by medium
The medium through which you're driving traffic to your website can also impact your conversion rate.
For example, visitors who come to your site from organic search results may have a higher conversion rate than those who come from social media.
This is because people who search for specific keywords are often more motivated and have a higher intent to buy. A study by Smart Insights showed the average conversion rate for organic search traffic is around 3%, while social media traffic may have a conversion rate closer to 1%.
Image. Sales conversion by source, according to Smart Insights.
3. Sales conversion by CTA type
The type of call-to-action you use on your website can also impact your sales conversion rate metric.
For example, a CTA that offers a free trial may have a higher conversion rate than one that simply asks visitors to sign up for a newsletter.
According to a study by HubSpot, the average conversion rate for free trial CTAs is around 10%, while newsletter sign-up CTAs may have a conversion rate closer to 1%.
What channel provides the highest conversion rate?
While there are many channels that can generate marketing-qualified leads, pre-qualify prospects, and lead to a high number of captured leads, some channels have proven to be more effective than others.
In 2023, the channel that provides the highest conversion rate is likely to be online advertising, particularly through social media platforms. Another channel that can provide a high conversion rate is email marketing.
Personalized and relevant email campaigns can help businesses build relationships with their audience, which can lead to increased trust and loyalty, and ultimately, higher conversion rates.
Businesses can also use search engine marketing (SEM) and pay-per-click (PPC) advertising. By bidding on relevant keywords related to the topic at hand, businesses can ensure that their PPC campaigns are shown to potential customers who are actively searching for their products or services. This can result in high-quality traffic and a higher likelihood of conversion.
Real-time personalization is another way to improve customer experience, which can lead to increased conversions.
5 tips on improving your sales conversion rate
Regardless of your industry or business size, improving your sales conversion rate is crucial for driving growth and increasing revenue.
In this section, we'll explore five tips that your sales and marketing team can use to generate marketing-qualified leads, boost your sales conversion rate and achieve greater marketing success in 2023.
1. Know your target customer
Conduct market research to identify your target customers' demographics, behaviors, and pain points. Analyze data from your website, sales and marketing teams, social media channels, and customer interactions to gain insights into your target customers' preferences and buying habits.
Once you have a clear understanding of your target customer, create buyer personas that represent the different segments of your audience. Use these personas to develop targeted marketing campaigns and sales strategies that speak directly to their needs and interests. This will ensure that your marketing efforts are effective.
2. Provide an excellent customer experience
Customers expect a seamless experience across all touchpoints, from browsing your website to receiving their orders.
Provide clear and concise product descriptions, high-quality images, pricing tables, and customer reviews to help potential buyers make informed decisions.
Respond promptly to customer inquiries and complaints, and go above and beyond to resolve issues and make customers happy.
Video. Some tips on how to provide excellent customer service.
3. Utilize a conversational growth strategy
A conversational growth strategy involves engaging with potential leads and current and future customers in a natural and meaningful way.
Consider implementing a chatbot or live chat functionality on your website to engage with visitors in real time and provide personalized support. Or, if your target audience is more old-school, there's nothing wrong with a phone call.
This can help to generate qualified leads by building trust and credibility with potential customers and increasing the likelihood of converting them into paying customers.
By taking a customer-centric approach, businesses can improve their sales conversion rates while also building long-term customer loyalty.
4. Find the leaky holes in your sales process
One important aspect that most businesses and sales managers tend to overlook is identifying the leaky holes in their customer journey and sales process. Fortunately, Glass.io offers a human approach to plugging these holes and improving your sales pipeline.
With Glass.io sales integration, you can observe how visitors use your website in real-time and trigger notifications when they show buying intent. This allows you to start a personalized conversation at the perfect moment and create a personal connection with potential customers.
By using chat and video to reach your customers directly on your website, you can replace a chatbot with a motivated sales rep ready to help.
Another feature offered by Glass.io is concierge onboarding, which allows VIP new customers to interact with an assigned sales rep during the critical first 90 days. Sales reps are automatically notified when prospective customers, new customers, or existing customers are struggling, enabling them to provide the necessary support and guidance to ensure a successful onboarding process.
The approach tools like Glass.io take to improving your sales conversion rate are both scalable and effective. By identifying and addressing the leaky holes in your sales process, you can meet website visitors while they are showing buying intent and increase conversion from day one.
5. Constantly monitor and measure your results
This tip involves setting up tracking mechanisms, such as Google Analytics or another web analytics tool, to monitor your website's traffic and performance. One effective method of measuring your results is through A/B testing. You can test different headlines, calls to action, and even web page layouts to see which version generates more conversions.
Analyzing your sales funnel is also critical to identifying where you're losing potential customers. By understanding where potential customers are dropping off, you can make necessary improvements to your marketing and sales team.
For example, if customers are leaving after viewing a product landing page, you may need to optimize your product descriptions or images to encourage them to make a purchase.
Regularly reviewing your data is another important step in improving your sales conversion rate. It is essential to make adjustments quickly and optimize your website for better performance. There are many tools available to help you do this.
In conclusion, while the average sales conversion rate across all industries is around 2.35%, what constitutes a great sales conversion rate in 2023 can vary greatly depending on industry benchmarks and on several factors.
As we move further into 2023, it is essential for businesses to stay on top of emerging trends and consumer behavior changes that may affect their sales conversion metrics and rates. By continually testing and refining their strategies, businesses can achieve higher conversion rates and drive greater success.
Ultimately, improving the sales conversion rate and the number of qualified leads is just one aspect of a successful sales and marketing strategy. By combining this metric with other key customer lifecycle metrics, such as customer acquisition cost and customer lifetime value, businesses can gain a more comprehensive understanding of their sales engagement and performance and make informed decisions that drive growth and profitability.
With Glass.io, you can reach across the screen and help visitors make a buy decision. See exactly how visitors use your website in realtime, trigger a notification to the right sales rep when they show buying intent, and start a personalized conversation (chat or video) at the perfect moment.
Plug your leaky sales pipeline by engaging with your website visitors while you have their attention. Sign up for an account here.