Generating leads is an essential business function, but if they do not convert, they simply represent a sunken cost. Conversion is just as important as lead generation, and it requires the same amount of effort, strategy, and technology. It is usually a focal point in a marketing budget, and you will find that many companies do not hesitate to open their purse when it comes to increasing conversions. In this article, we’re going to take a look at several reasons why your leads are not converting into sales.
Companies with long sales cycles will invest more in a lead than companies with a shorter cycle. This means that each lead that does not convert is costing the company more revenue. To counter this, you have a process called lead qualification. Lead qualification separates leads in two camps: good fits and bad fits. You can add two more categories here: leads that are actively engaging with your marketing content, and leads that are not very engaged, but which have made a point of contact with your content. Some companies also add a third category for leads that have attempted to contact a member of the sales team.
Each one of these two or three categories can be considered either a good fit, or a bad fit. It is up to the marketing team to determine the characteristics of each type of lead, and create a strategy that focuses on effectively pursuing good fits. By qualifying leads in this manner, you will be able to increase conversion rates, and reduce wasteful spending on low quality leads.
The sales and marketing department are misaligned
This problem is much more common than you’d think. In fact, according to a study done by HubSpot, 87% of the terms used by the marketing and sales departments to describe each other are negative. It comes as no surprise that you may have to deal with a misaligned relationship between these departments. It is up to the leadership to ensure that both teams understand the main goal: generate revenue. The departments should understand both the primary and secondary goals for the marketing pipeline, and they should share relevant information with each other. Otherwise, many quality leads may fall through the cracks.
Improperly designed website
Poor site architecture will create bottlenecks for conversion. Leads will visit your website and they will not be able to find the information they need to get in contact or decide on whether to purchase or not. Companies also face conversion problems when they have slow loading websites, which are a huge turnoff for most users.
Landing pages will also require some attention. Proper web design and A/B testing can do miracles for conversion rates. It’s not a rare occurrence that a simple color change, or a change in the layout of the landing page, generates a conversion rate improvement of several percentage points.