Think fast—what’s one of the biggest challenges facing senior marketers in 2020?
In a recent survey, Beth McGarrick, product marketing manager at Attest, shared some answers to that question. One of the top five challenges marketing professionals (around 42.7% of them) said they faced was “they’re under pressure to make the right decision quicker than ever.”
Making the right choice—quickly?? Pshh. That only takes finding the problem, collecting data and information, brainstorming alternatives, weighing alternatives, making a choice, and creating a plan. Wait, that is a lot of pressure! If you’re currently running around like a chicken with its head cut off, you’re not alone.
When starting a project, attacking a new marketing channel, or planning a campaign, you need to be aware of some key B2B benchmarks for your industry. Your customers’ preferences, habits, and needs change unexpectedly, but knowing the average B2B lead conversion rates can fast track three steps in your decision process: collecting data and information, finding alternatives, and weighing your options. Want a quick lesson on how to make this important metric work for you? Keep reading.
What is the lead conversion rate?
The lead conversion rate is the percentage of website visitors who convert to leads, qualified prospects, or sales.
Lead conversion rate is also known as:
- The visitor-to-lead ratio
- Page conversion rate
- Lead-to-customer conversion rate
- Sales conversion rate
This metric is a top-of-the-funnel key performance indicator. It tells you right off the bat if the leads coming in from search engine optimization (SEO), social media channels, or advertising campaigns are quality. If the conversion rate is low, you know something is wrong with your marketing message, offer, customer targeting, or even website performance. Now, let’s go over the average B2B lead conversion rate formula.
The B2B lead conversion rate formula
To get the conversation rate, just divide the total number of conversions by the number of leads and then multiply by 100.
- Formula: Lead Conversion rate = (total conversions / total leads) * 100%
For instance, if you want to know the conversion rate of visitors who signed up through your lead form for an ebook, just plug in the numbers:
- (2,000 signups / 12,000 visitors) * 100%
Lead conversion rate = 16.66%
Say you want to calculate the number of sales from your landing page. It brought in 6,500 visitors last month, 156 of whom you’ve converted into paying customers.
- (156 sales / 6,500 visitors) * 100%
Lead conversion rate = 2.4%
If 156 customers brought in your desired revenue, then you know 2.4% is the average B2B lead conversion rate you need to consistently hit for landing page success. If not, you know you have to aim higher.
Next, use Lusha’s ROI calculator to gather even more data. Just enter your monthly web traffic numbers, your conversion rate, and the price of your product or service and it’ll generate an awesome breakdown of the monthly and yearly revenue you can expect. The sales team now has information to guide their goals and focus their efforts.
Don’t be fooled by the word conversion
You may have noticed we used the words “lead,” “qualified prospects,” and “sales” when referring to a conversion. That’s because the metric can be used to calculate all three in all stages of the funnel and “conversion” can mean absolutely anything depending on your goal. The visitor may convert when they decide to:
- Make a phone call
- Engage with your website
- Reshare content
- Download content
- Create an account
- And more.
As you can imagine, this variability opens the door to miscommunication. Your marketing and sales teams must clearly define what conversion means to them and what problems they’re going to solve.
Case in point: You run a monthly subscription-based service, and rely on leads signing up for a free trial to become paying users. Thus, an important indicator of conversion is how many leads sign up for a free trial. But measuring how many free-trial users end up becoming paying subscribers is also important!
Each conversion rate provides different insights for your sales and marketing teams and prompts different actions when it’s low:
- Lead to a free-trial user: Sales might need to contact leads sooner while they’re still fresh and more inclined to sign up for a trial.
- Free-trial to paying customers: Before the free trial ends, you might try extending the trial period to win them back.
Without clearly defining your terms, you can get trapped on a hamster wheel: your marketers waste their time on metrics that answer the wrong question, and your sales reps waste time on the wrong closing tactics.
By the numbers: B2B benchmarks by industry, website page, advertising channel, and electronics
Why you shouldn’t aim for these numbers
In school, no student ever aimed for a C-; you always wanted an A+. These B2B benchmarks are great to have on file when you’re starting a new project and you’re unfamiliar with the numbers, but there’s no universal average B2B lead conversion rate that will work for every business. A rate that makes sense for one company could mean the loss of a boatload of money for another.
In real life, rates vary by industry, advertising channel, device, and even individual salespeople. Making the right choice quickly includes using internal data from your team to complement these average numbers before you jump the gun.