Whether you’re talking marketing or foot traffic, there’s one critical measure in business that separates the could haves and would haves from the actual figures – conversion.
Through all stages of the customer journey, conversion is the key metric, and it helps you define just how successful your business is at taking a potential client from a ‘maybe’ to someone who actually puts their hand in their pocket to spend.
So, while it might not be as popular as marketing or even missions, values and goals, let’s get down to the nitty gritty and talk about customer conversion.
What is conversion?
At its simplest conversion is the true art of sales. It’s that point in the customer journey when someone transforms from prospect to paying clientele.
In business, the conversion rate is a key metric because it helps you define how many prospects (aka potential customers) you need to interact with in order to make a sale.
Why conversion matters.
Your conversion rate relates to your success rate. It’s the ratio of prospects to sales.
Sure, it’s not a pretty phrase, but it is the basis of any business. Without actual sales (as in dollars in your pocket) a business has little value.
So how do you up your conversion rate, no matter the service or product you sell?
Talk to the right people
The first step of converting a lead to a sale is to ensure you are talking to the right people, aka your ideal customer. Your ideal customer is the type of person that you have defined is most likely to want or need what you offer then buy from you.
That means you should know your ideal customer well, including who they are likely to be, what they will be willing to pay, and what they will expect when they do business with you.
The reality is, a great deal of time and effort can be wasted in business talking to the wrong people. But when you are speaking with your ideal customer, you are talking to someone who is ready to either buy now or in the future.
Make no mistake, conversion isn’t about the price of a product or service. It’s about the value it offers to your ideal customer. And this value needs to be demonstrated, by asking yourself what’s in it for them?
Why would they purchase your product or service, and why should they go with you instead of another business with a similar offering, and how would they benefit from working with you?
In other words when speaking with your ideal customer, you should consistently be answering the questions why your business, why this product or service, why now?
Show the point of difference
Whether it’s your customer service, your quality, or your price, illustrating the point of difference between your business offering and others in the market is essential to converting leads to sales.
Every business should have a point of difference from their competitors and this needs to be front of mind when in discussions with your customers.
The final takeaway
Of all the factors in business, conversion is probably most critical. It’s the difference between being in business and business success because it is the key element of sales.
And make no mistake, no matter the business you are in, every single enterprise is in the business of selling.
Looking to convert more people into paying customers? I’m available to assist, and you can book a discovery call with me here.