It is important that you understand how you are converting your leads to sales; as this is a good guide to how you manage your time and how you allocate resources to your promotional budget.
For example, you have 10 inquiries but only received 2 contracted sales. It means your conversion rate of leads to sales is 20%. Here is an easy formula to use- Sales/Leads x 100 = %
Let us now go a step further and determine the value of each lead. In using the above example, we will cost your product at $3,000. This calculates into $6,000 in sales (remember you were only able to close two ‘hot leads’). This means that each lead will cost you $600 (Sales Revenue/ Leads).
Above all, if you are forecasting a specific target for the quarter it means as a business owner you should pay attention to your conversion rate. For example, the target for Q2 is $30,000, it means working 50 qualified leads to achieve this target.
We can help you figure out your conversion rate and how you can allocate your resources to reach those targets. Ask us today!