How a one-point improvement in your conversion rate adds up
Conversion rates look small on a dashboard. A move from 4% to 5% sounds like a rounding error, yet it can be worth more than any other change you make to your website this year.
Why small gains are big
Your rates multiply each other: visitors become leads, and leads become customers. Improve one step and every step after it benefits. That is why a single point at the top of the funnel is worth so much.
A worked example
Say 8,000 people visit each month, 4% become leads, 25% of those become customers, and a typical sale is S$2,000. That gives 320 leads, 80 customers and S$160,000 a month.
Now lift the lead rate by one point to 5%, and the close rate by two points to 27%. That is 400 leads and 108 customers, or S$216,000 a month. The difference is S$56,000 a month, or S$672,000 a year, from changes that look tiny on paper.
A rule of thumb
At those numbers, every extra point of visitor-to-lead rate is worth visitors × 1% × close rate × sale value × 12: 80 × 25% × S$2,000 × 12, or about S$480,000 a year. LeadFlow works this out for you under the sliders.
Use it with care
- This is revenue, not profit, and it assumes the rest of your numbers stay the same.
- A bigger number does not mean an easier change. Pick the gain you can realistically make first.
- Change one thing at a time, so you know what worked.
Move the "What if you improved?" sliders in the free LeadFlow calculator to see your own numbers. To see how your rates compare with your industry first, read is your website conversion rate good?