The Importance of Measuring Lead to Sale | Perq Convert Help Center

Video Transcript

We're now going to dive into the most important metric that you've never been able to use before, and that is lead to sale. You're going to use this metric to be able to evaluate your overall digital sales strategy performance and constantly working on how to be able to improve it. So first of all, what is lead to sale? Well, lead to sale is simply looking at how many leads you've received and then paying attention to how many of those leads turned into a sale transaction over the next 90 days. So in this simple example, if you had four leads and one of those made a sale over the next 90 days, that would turn into a 25% lead to sale metric.

So now, why is it so important? It's because everything, all the activities and behaviors your team will be doing in the digital sales strategy roll up to make a difference in your overall lead to sale. Lead to sale is the umbrella to be able to measure everything that is underneath it that makes a difference in improving your overall conversion of lead to in store sale.

Let's look at some examples here of real numbers. This is a typical three-month sale results of someone beginning. In month one they're 116 sales out of 1,389 leads, that's going to give us an 8.35% lead to sale metric that results in this revenue right here. We're then going to be looking at the second and third month and hopefully the efforts that were put in place to be able to consistently improve, will increase that lead to sale metric.

Now, why this matters so much is let's actually look, if we can just increase this by 5%. So after three months we should have a pretty good idea of putting this process in place and now how has it been to continue to improve that? A 5% improvement means that over the same number of leads of 1,253, we now are being able to generate 230 sales versus 167 by increasing the performance of our team to be able to have a higher conversion of the number of leads turning into sales. This can mean a $60,000 plus revenue improvement purely by becoming more efficient and effective on your followup process on your leads and digital apps.

How do you improve the lead to sale metric? Well, once again, it's tough to move an overall umbrella number without paying attention to all the pieces that are underneath that. This is speed to lead, the percentage of leads touched with text, the percentage of leads that you turned into digital ups, remember digital up is someone who has turned into a conversation, that has asked a question and you're now in dialogue with each other. And then the percentage of digital ups turned into VIP appointments. All of these improvements in these individuals smaller metrics mean that you will lift your lead to sale metric in your overall conversion.

Now there are also some other things that impact lead the sale as well, as we've seen across our client base, some of that is how strong your brand is. Is there a lot of competition in your area? What's your inventory like somebody comes to your website that turn into a lead and then turn into an in store sale? And then also just website traffic in general. The better your website traffic, the more organic traffic you have versus a cheaply paid for traffic can make a difference into how strong the leads are, which then results into how strong your lead to sale is. But we're going to look at all of this monthly from your sales consultant to be able to work with you on where are you standing on your lead sale and what are we doing to try to improve it.

So here are some baselines that you can use to compare yourself to your peers. This is based off of 250 clients that we have in analyzing where everyone stands. What we can tell you is that 12% is our average lead to sale right now across our client base. 6 to 10% below average, 10 to 15% is what we consider average, 15 to 20% above average and then we have several clients that are up above 25% even, and we consider that to be superior. So we're constantly working to be able to get clients move forward, and we see everyone that starts off as somewhere where they're able to improve.

So it doesn't matter where you start, it's all about that improvement. We've had clients start at 5% and be super excited about that 10% improvement when they hit 15% lead to sale. And we've had clients start off at 20 that then work their way into 30%. So it's all out there to being able to improve your team, to improve your overall lead to sale metric by paying attention to this number and knowing why it matters.