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How to Calculate Sales Conversion Rate?

How do you calculate the sales conversion rate effectively?

Well. Sales Conversion Rate is one of the essential metrics for businesses to measure the performance of their advertising campaigns that convert leads into sales.

With this metric, businesses can analyze the performance of their sales team and find solutions to grow their business.

However, there’s much more you need to know about sales conversion rates.

That’s why this guide covers everything about sales conversion rate, its importance, benefits, and how to increase it to grow your business.

If you’re a business owner and want to analyze your sales team’s performance and increase sales, then you need to learn about sales conversion rates.

Without any further delay, Let’s begin!

What is the Sales Conversion Rate?

The Sales Conversion Rate is a metric that helps businesses analyze their sales team’s performance and how many leads are converted into customers by their sales team.

It’s one of the popular metrics many businesses use to measure their marketing and sales teams and enhance productivity through performance analysis.

It’s important to keep analyzing the performance of the marketing & sales team because the marketing team will generate quality leads, and the sales team will convert the leads into sales.

As a business owner, you need to understand that you’re getting quality leads and have a strong sales team that gives you the best conversions.

To identify their performance, the Sales Conversion Rate is the best metric every business uses to grow.

Let’s understand with an example: For any business, the marketing and sales teams play important roles.

So, in the first step, the marketing team will organize and set up a workshop, webinar, or other offer to generate qualified leads.

Once the team generates qualified leads, the sales team is responsible for nurturing them and converting them into customers.

If your marketing team generates around 100 leads and converts ten new customers, your sales conversion rate is 10%.

However, the sales conversion rate depends on the business, so if you’re doing a real estate business, 10% is a massively profitable conversion.

On the other hand, in e-commerce and product-selling businesses, 10% is not enough, and businesses need to improve their team performance to get better leads and high conversions.

How to Calculate Sales Conversion Rate?

For some people, the sales conversion rate is complex, but it’s a simple formula used by businesses to calculate their sales conversion rate.

Two formulas can be used to calculate the sales conversion rate.

Here’s the formula to calculate the sales conversion rate:

Sales Conversion Rate = (Number of Sales / Number of Leads)*100


Sales Conversion Rate = (Number of Conversion / Number of Qualified Leads)* 100

These two formulas help businesses understand the performance of any marketing or sales team and enhance their team’s productivity to generate more qualified leads and increase conversions.

Why is the Sales Conversion Rate Important?

Sales Conversion Rate is one of the crucial metrics for any business to measure the performance of their marketing & sales team and how to improve their team’s efficiency to increase sales and conversions.

There are numerous reasons to use sales conversion rate for your business, and some of the main reasons are:

1. Control Sales Pipeline

If your business has a marketing and sales team, you need to use the sales conversion rate metric and track your team’s performance.

It’s also essential to track your leads and sales so that you can analyze how the process works and what gives you results.

This metric helps you analyze where your team lacks in generating leads or getting sales.

You can improve the effectiveness of your sales pipeline and train your marketing and sales team to generate qualified leads and convert more visitors into customers.

2. More Conversions = More Revenue

Tracking your marketing & sales team can help you understand the loopholes, and you can optimize the sales process more effectively so that you’ll get qualified leads and increase the conversion rate.

The more qualified leads you generate, the more conversions you’ll get; the more conversions you’ll get, the more business you’ll grow.

So, it’s essential to use the sales conversion rate metric in your business, understand your sales process, and figure out the best way to optimize your conversion rate and increase sales.

3. Accurate Predictions

Sales Conversion Rate is a simple metric that analyzes the performance of your marketing & sales team based on the previous data collected like sales, leads, and marketing activities.

If you have a good amount of data, you can predict more effectively and find something meaningful from the data that helps you build a strong sales process and increase conversions.

If you’ve previous data that shows your marketing team targeting the wrong audience for your business and the sales team not nurturing leads properly.

Once you’ve identified your weaknesses, you can make changes to your sales process to make it more engaging and useful, increasing sales and conversions.

How to Improve Your Sales Conversion Rate?

The main purpose of using the sales conversion rate metric is to analyze your team’s performance and determine the best possible way to improve its efficiency and achieve better results.

If you’ve used sales conversion rate and find out that your marketing & sales team is not getting desired qualified leads and sales, then you need to make major changes in your business to get the desired results.

We’ve handpicked some most effective ways to improve your sales conversion rate and grow your business:

1. Optimize your Website/Landing Page

A website or landing page is essential for any business to attract qualified leads and convert them into customers.

With a landing page or website, you can promote any products/services with an excellent offer that encourages customers to make buying decisions and grow your business.

If you know the importance of having a website or landing page, you first need to describe the pain points of your targeted customers and promote your offer so that you can resolve the problem in the simplest way.

To generate qualified leads and sales, you need to add powerful elements to your website, such as a call-to-action button, contact forms, newsletter subscription, chatbot, and other things that engage your visitors and encourage them to make faster buying decisions.

One thing you should keep in mind is that your website/landing page should be user-friendly and interactive.

Billions of people are using smartphones actively, and there’s a high chance of customers going to your website/landing page via smartphone.

So, it must be user-friendly and support all the devices.

2. Create Useful Blogs

If you want to target potential customers and increase your website’s traffic, you can start blogging.

Creating useful blogs on rankable keywords can help you get a better ranking on Google, attract potential customers to visit your website, and make buying decisions based on your offer.

If you’re offering any products & services, then you can create content around the field and, attract potential customers, and turn your blog into a conversion funnel.

Blogging is one of the most effective and organic ways to target potential customers and increase sales.

3. Social Media Marketing

When your potential customers are actively using social media platforms, why are you not going in front of them and promoting your offer?

Social media is one of the best ways to target potential customers and promote your products & services most effectively.

Billions of people are using social media platforms like Facebook, Instagram, YouTube, Twitter, etc., where you can easily find your potential customers, generate quality leads, and increase sales.

If you want to increase the sales conversion rate for your business, then you need to focus on social media marketing and get qualified leads and sales.

4. Email Marketing

If you’re serious about increasing your sales conversion rate and want to generate qualified leads and increase sales, email marketing is your must-have marketing strategy.

Email marketing can attract potential customers, generate qualified leads, build engagement with visitors, and convert leads into sales.

It’s the best way to build trust with your customers and encourage them to make buying decisions.

But email marketing is not a one-shot game; it’s an entire process of catching customers’ attention, generating qualified leads, nurturing leads, and encouraging them to make buying decisions.

You need to start sending powerful emails to your leads and build trust for your products/services so that you can convert leads into sales.

But make sure that you’re sending the right email to the right customers to get the desired results.

5. Automation

Many AI-powered automation tools are available to businesses to save precious time & money in automating repetitive tasks.

Using automation tools, you can automate all the repetitive tasks and focus on other important functions that help you grow your business more effectively, such as sales decisions, marketing strategies, campaign optimization, and more.

AI is widely used for customer support and is the best fit for interacting with customers, resolving queries, and responding actively 24/7.


It’s an AI tool with tracking features that can be used to track sales, bounce rates, new visitors, traffic sources, and more.

You’ll get a complete report that you can use for sales data analysis and, based on the report, make changes to improve results and conversions.

6. Referrals

Referrals are the most effective way to increase sales and grow your business.

If you’ve previous clients who got benefits, then you can ask them to refer your products/services to other people, and this is the simplest but most popular way to increase sales and grow your brand.

It’s full of potential marketing strategies with unlimited potential to grow your business.

7. A/B Testing

A/B testing is the must-have strategy for every business.

If you want to promote your products/services, you can create two landing pages, emails, and other content and set up two marketing campaigns for the same results.

You need to run two campaigns together and analyze which one gives you better performance.

Then, you can make changes to your campaign and get better results.

8. Social Proof

Social proof is one of the most preferred marketing strategies to increase the sales conversion rate for any business.

These are eye-catching and attract pop-up notifications that you can display on your website to encourage visitors to take similar actions, such as purchasing and filling out forms.

With social proof notifications, you can engage with visitors, generate qualified leads, and increase your business’s sales.

You can use these attractive social proof notifications on eCommerce stores, email marketing tools, and WordPress platforms to increase the sales conversion rate for your business.

WiserNotify is the #1 best social proof notifications platform.

It supports 250+ platforms to display social proof notifications, including email marketing tools, landing page builders, and more, to increase sales conversion rates.


The sales Conversion Rate is the most important metric for analyzing the company’s revenue and growth.

By analyzing these metrics, businesses can optimize their campaign and get better results for their business.

We hope this article helps you know everything about sales conversion rate, its types, and the best ways to increase sales conversion rate to get better results.

Picture of Krunal Vaghasiya
Krunal Vaghasiya
Krunal Vaghasiya is a marketing tech expert who boosts e-commerce conversion rates with automated social proof and FOMO strategies. He loves to keep posting insightful posts on online marketing software, marketing automations, and improving conversion rates.

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