Conversion rate
With more and more call centers reducing their average rates, it gets more and more complicated than just hire a few workers to achieve good customer support. Measuring call center metrics and improving them by analyzing data is sure the way to go. Measuring conversion rate allows us to take into account the things working in our favor. How many calls did it take for you to finalise a sale? That is your conversion rate. Conversion rate signifies the interaction a customer had with your company that resulted in achieving sales or converting a lead. It is arguably the most important outbound call center performance metric. Without high conversion rates, companies lose potential customers and sales opportunities.
How Do We Calculate Conversion Rate?
If you do not track your conversion rate, you are not in a position to improve it. Making conversions rate better are one the key things one can do for their customer support leading towards better sales. To calculate conversion rate we take the following steps:
Tracking conversions
Conversions are potential customers who purchase your product, complete your survey, download your newsletter or subscribe to you after receiving your call. This helps call center monitor their leads which are people who are interested in company’s services. Sales conversions can be calculated by the following method:
Conversion rate = Total number of sales / Total number of leads x 100
For example: If you had 20 sales/month out of 2000 unique leads, your conversion rate will be 1%
To measure conversion rate for calls in an outbound all center, the following formula is used:
Conversion rate= Number of sales through calls / Number of calls made x 100
Working out Value of Lead
Lead value is the potential value a customer has for a particular business. A lead value is what it’s worth to you. If you sale a particular product worth 100$ and you convert a lead into a sale then that particular lead is worth 100$ to you. However, not ever lead will end up in a sale. If you only turn two out of 10 inquiries into a sale, then your conversion rate is going to be 20%.
This means you can generate 400$ from your 10 leads if you are converting 2 out of 10 leads into a sale with a 20% conversion rate. This makes the value of your one lead as 40$.
The formula to find the value of a lead is:
Lead value = Value of Sale / Number of Leads
Benefits of finding out lead value
Finding out lead value is really important because it can help you make policies, analyze customer trends, make predictions and work towards customer acquisition and generating more ROI. Lead value is also important if we want to find out the maximum value a customer can bring with purchases of lifetime which keeps us in a better position to determine return on investment of our customers. Buisnesses can use this data to predict sales, to devise marketing campaigns and to plan their budget accordingly. You can determing how many leads are needed monthly to sustain business and how much should be spent on marketing campaigns.
If you generate 1500$ to keep up your business, based on your convertion rate of 20%, each lead is worth 40$ which means you need around 38 leads per month (1500/400 + 37.5) to make about 8 sales and generate 1500$ revenue.
The formula to calculate required conversions is as follows:
Conversions Needed = Desired Revenue / Lead Value
How do we optimize your conversion rate?
We optimize conversion rate, to help you keep up with your business expenses and meet your needs. We take the following measure to make sure we are able to consistently improve the conversion rates:
- We ensure that we are hiring with sales based approach and hire agent who not only have keen learning kills, empathy, and enthusiasm but are also proactive in their approach so they can easily engage with your customers and convert maximum leads. We hire people who are natural problem solves and have a strong drive to help others.
- Every customer is unique and so we take help of our analytical tools to arm us with data and new insights to let us customize and improve sales script for better conversations.
- We carry A/B testing to optimize conversion rate and we keep updating the words, phrases, testimonials, layout and all the elements that work best. Even the simplest changes to improve user experience can impact conversion rates.
- We monitor the entire sales full and try to improve the conversion rate by going stage by stage which includes checking out for process inefficiencies impacting the agents’ ability to close a sale.
- We take all kinds of feedback, especially negative feedback and to figure out problems and train our ChatPandas if their interactions need further improvement.
- Our ChatPandas try to have clear communication with the customers, telling every important detail they may be interested in like pricing, features and returns.
- Our multi-channel call center give customers a choice to select any medium of communication they prefer, closing the gaps between finalizing leads.
- We consistently monitor calls and listen to them later and coach our ChatPandas on how they can make their responses better and thus optimizing conversion rates.