One of the most daunting things in business is dealing with what is called “analysis paralysis”. It’s the idea that having too many options can make it difficult for someone to decide. For example, prospective customers can get easily confused and frustrated if there are too many things to look at or if the design of your product is too complex, this can lead to them dropping off of your website like flies.
When this happens, visitors won’t convert. Therefore, you need to focus on increasing your conversion rate to lower your cost per acquisition.
One of the most crucial KPIs in marketing is the conversion rate. It helps marketers in assessing the effectiveness of a campaign, ad group, or advertisement. It’s also beneficial in increasing revenue and reducing customer acquisition expenditures.
In the last 10 years, the average e-commerce conversion rate ranges between 1% and 4%. And the average conversion rate for e-commerce for 2021 is 2.1%. But, during January 2022, it experienced a decline of 6.78%. This is primarily due to the loosening of the Covid-19 restrictions.
To compute the conversion rate the formula is: Total number of conversions / Total number of unique visitors * 100 = Conversion rate.
The most common conversion rate ranges from 2 to 5 percent. However, this range doesn’t apply to all business industries. Although the top 25% of businesses in each industry have a conversion rate that’s average of 5.31%, this is far higher than the average for small businesses and the bottom 75% of businesses in each industry.
In fact, according to a report by Ascend2 in partnership with Revsure only fewer than half of B2B marketers (only 44%) can say they are extremely confident in getting prospects to convert to sales as they go through the buyer’s funnel.
And that just 4 in 10 (39%) express extreme confidence in their bottom-of-the-funnel conversion abilities?
These are some steep numbers and the report goes into detail about how the best way to increase the conversion rate is through pipeline insight. This is a top priority to enhance lead-to-opportunity conversion rates in the long run.
Every revenue marketer’s objective is rooted in lowering cost per acquisition while simultaneously increasing conversion rates. As such according to the report, the respondents that understand this and can fully predict their pipeline contributions and outcomes are made up of about 3 in 10 (29%) while two-thirds (66%) have difficulty finding the funnel leakage and bottlenecks in increasing conversions.
By far the most common way of analyzing the quality of marketing pipelines is by using forecasts for actual comparisons. To predict the pipeline, many rely mostly on automation with some manual processes.
The ability to predict pipeline outcomes is crucial to the overall success of any marketing program. These skills also greatly influence a marketer’s ability to boost lead-to-opportunity conversions that will improve lead quality and nurturing.
According to recent research from MarketingCharts and Activate, almost 9 in 10(86%) of B2B gen marketers agree that in the future focusing on quantity rather than the quality of leads is more effective. However, the most challenging aspect of successfully generating a pipeline is the lack of adequate data required to make effective decisions.
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