Simple Marketing Formula…
I was reading a blog posting last week that I thought I’d share. Sometimes a really simple marketing formula can make a big difference in how to anticipate business growth for a new year.
It’s really important for small businesses owners to understand lead conversion. Lead conversion rate is basically the percentage of leads closed or converted to customers out of the total number of leads in a given year. The higher the lead conversion rate the faster you meet your business/revenue targets for the year.
Here is the excerpt from the posting on the Pollock Marketing Group website:
Simple Formula: Like most calculations you can get your answer by starting with the goal. Try plugging numbers into this formula.
Annual Revenue Goal/Average Annual Revenue per Client = # Clients
# Clients/Conversion % = Leads Needed
Conversion % is usually the big unknown: Most businesses don’t take the time to learn this number intimately.
Although it is true that most small business owners do not know there Conversion % or lead conversion rate, it might be worth looking at trying this year to better understand what your conversion rate is. Working on sales techniques that increase conversion rate may help grow your business faster.