Companies invest in everything from eye-catching ads and exciting events to influencer marketing partnerships and blog content to entice potential customers. For example, a beauty brand might introduce skin care enthusiasts to its new Vitamin A serum through Instagram ads.
But grabbing someone’s attention is just the first step. To turn a promising lead into a loyal, repeat customer, you must guide them through the sales funnel.
Below, learn the most effective lead conversion strategies for transforming curious prospects into devoted customers.
What is lead conversion?
Lead conversion is the term for when businesses transform potential customers (leads) into paying customers. The lead conversion process involves a series of steps: nurture leads, build trust, convert leads, and complete the sale. The entire process can look very different depending on your industry, product, service, and target audience.
For example, an ecommerce company selling outdoor gear might offer a free guide to the best local hiking trails in exchange for a web visitor’s email address. That could kick off a sequence of emails about the benefits of its equipment. One day, when the brand offers a time-limited offer, a lead makes a purchase and becomes a customer.
To assess the effectiveness of your marketing and sales team efforts, it’s important to regularly calculate your lead conversion rate, or the percentage of leads who convert into customers.
How to calculate lead conversion rate
Knowing your lead conversion rate helps you evaluate your team’s lead generation and lead nurturing strategies. You’ll need to know the total number of leads acquired during a specific period and the number of those leads that ultimately converted into customers.
Then, you can use this formula:
Lead conversion rate = (Number of converted leads / Total number of leads) × 100
Lead conversion rate calculation example
Let’s say an ecommerce brand selling artisanal chocolate bars generated 1,000 leads through various marketing campaigns in June. Out of those 1,000 leads, 50 went on to make a purchase.
Using the formula above, we can calculate the lead conversion rate:
Lead conversion rate = (50 / 1,000) × 100 = 5%
The ecommerce chocolate brand’s lead conversion rate for June is 5%, meaning that for every 100 leads generated, five became paying customers.
8 strategies for optimizing lead conversion
- Shorten lead capture forms
- Focus on high-quality leads
- Entice prospects
- Guide leads with CTAs
- Harness the power of social proof
- Build trust with risk-free guarantees
- Create urgency
- Talk with leads in real time
The right lead conversion strategy turns potential customers into paying clients. Here are a few ways to strengthen your process:
1. Shorten lead capture forms
Once a visitor arrives at your website from a paid ad, newsletter, or other method, you can encourage them to sign up for an informational session, ask for a quote, or do other activities to further engage. You don’t want to lose them with a clunky, complicated form.
Instead, aim for simple and concise. Only ask the essentials—name, business details, and email—and perhaps two or three qualifying questions, such as:
- What’s your biggest challenge with [problem related to your specific product]?
- What’s your time frame for implementing a solution?
- What’s your budget for this project?
Ensure it’s also mobile-friendly, so people can fill it out on the go.
Chocomize, a company that customizes corporate gifts, generates leads through a pop-up on its website offering a free gift consultation. The user-friendly contact form asks seven questions that all appear on one page, making it easy for potential clients to express interest and connect with a specialist.
2. Focus on high-quality leads
Sales teams shouldn’t expend the same effort on every lead. For instance, an entrepreneur running a business-to-business (B2B) decorative candle company might target hotels and spas instead of small Airbnbs, because hotels are likely to place larger, more frequent orders.
High-quality leads share a few qualities. They often:
- Demonstrate a genuine need for your product
- Have the authority to make a purchase decision
- Align with your ideal customer profile
- Ask specific questions and plan to make a purchase shortly
Allocate resources to promising leads, which can help you close more deals faster. Use lead scoring software—like HubSpot or Apollo—to measure the effectiveness of your lead generation campaigns and separate qualified leads from window shoppers.
3. Entice prospects
Consumers are not short on options. A health-conscious shopper seeking snacks might have dozens of granola bar brands from which to choose. A busy scrum master could spend hours comparing project management software solutions.
An enticing offer can tip a curious browser into a committed lead. For instance, a company selling office chairs and desks might provide a guide to home office ergonomics for newsletter subscribers. By delivering tangible value upfront, you can grab attention, establish credibility, and make it easy for prospects to take the next step.
4. Guide leads with CTAs
“Sign up.” “Subscribe.” “Try Now.” These calls to action (CTAs) are clear, but do they make leads want to click? Probably not. The most effective CTAs are both clear and compelling. Often, they make a promise.
Your CTA should make leads feel like they can’t afford to miss out on your offer:
- “Prepare dinner in 10 minutes. Get the recipes!”
- “Never run out of coffee again. Subscribe now!”
- “Endless fun for your furry friend. Shop dog toys.”
What works for one audience might fall flat with another, so don’t be afraid to experiment. Consider A/B testing your CTAs across your website (simultaneously running different versions with small variations). You can also A/B test CTAs in emails and landing pages to discover what’s most effective.
5. Harness the power of social proof
Despite compelling messaging, customers may tune out the voice of a brand or a business. Fortunately, there is someone they want to hear from: happy customers. While your carefully crafted landing pages and resources might attract leads, sometimes all it takes is a well-timed customer quote to seal the deal. This is the power of social proof.
When prospects see real people achieving results with your product or service, it builds trust and credibility. Include glowing testimonials on your product pages, pepper your email campaigns with success stories, and incentivize customers to share user-generated content across social media.
Take it a step further by creating in-depth case studies a sales rep can share or hosting live webinars featuring your most satisfied clients, giving potential leads a chance to ask them questions.
Brooklinen, a direct-to-consumer (DTC) brand known for its luxurious bedding and home essentials, has also established a strong presence in the B2B ecommerce niche with Brooklinen for Business. On its dedicated page for hotel partnerships, Brooklinen shares an impressive portfolio of boutique hotels and luxury cabins that have adopted its products, using social proof to attract and convert new leads in the hospitality industry.
6. Build trust with risk-free guarantees
Offering a risk-free guarantee can build trust and generate leads. If a customer doesn’t receive the promised value from your product, they can get their cash back, no questions asked. A skin care device brand might offer a 30-day 100% satisfaction guarantee, showing that it’s confident in its products.
However, sales and marketing teams should strike a balance between attracting new customers and controlling expenses. A generous guarantee that can generate leads shouldn’t eat into the bottom line. Implement terms and conditions, like a time limit on returns, to protect your business while still providing a safety net for loyal customers.
🌟Resource: How To Write a Return Policy (+ Free Template)
7. Create urgency
Countdown timers have become a staple of Black Friday and Cyber Monday sales. Featured prominently on websites, they let visitors know when a discount will expire. However, major shopping holidays aren’t the only time to employ these urgency-inducing tools. You can also use countdowns and deadlines to boost conversions and generate leads for your business.
However, use timers and offers sparingly because they become less effective if one is always on your website. Reserve these tools for special promotions and limited-time events to create a sense of urgency for converting leads into loyal customers.
Cowboy, a startup selling app-connected e-bikes, knows how to make an impact. With an eye-catching banner proclaiming “Summer Sale ends in 9 days,” and a €500 discount on its Performance and Connect models, it’s encouraging adventurers to make a purchase now.
8. Talk with leads in real time
A customer’s interest in your product can wane in a moment; a promising lead can become a lost opportunity. Here, live chat customer support can help.
If a prospective customer has a concern about your product—whether it’s about your return policy or bulk orders—customer service can answer their questions. A knowledgeable live chat agent who can provide quick, accurate answers could be the key to converting that lead into a buyer.
However, don’t engage too early in the browsing process. Look for indications that a lead is ready to interact, like spending more than five minutes on a product page, navigating to your page on shipping information, or hovering their cursor near the Add to Cart button.
Lead conversion FAQ
What is a good lead conversion rate?
A good lead conversion rate varies by industry; however, a good rate typically falls between 2% and 10%.
How can you convert a lead?
You can convert a lead by providing valuable information, building trust, and offering solutions that address their pain points better than competitors.
Why is lead conversion important?
Lead conversion is important because it directly affects your business’s revenue growth and profitability.
