Today we’re going to take a closer look at some sales funnel conversion rates.

Because, really knowing your sales funnel conversion rates can give you a massive advantage.

As it turns out, that unlike what most say, there are actually 4 different conversion metrics within almost every funnel.

And understanding what they mean, will make it easier to determine if your conversion rates are under, equal or above the industry standard.

In fact, in this guide, you’ll learn if a landing page conversion rate of 5% is good, or if a sales page with 18% conversion rate is bad.

What Is A Conversion?

Before we look at the sales funnel conversion rates, we need to first determine what counts as a conversion.

In my book a conversion is when someone acts according to the call to action by taking that exact action.

It might sound complicated when I say it like that, but trust me it’s not.

For example, this could be when a visitor takes action and:

• Subscribes to a newsletter
• Downloads a lead magnet
• Buys a product
• Calls your business
• Submits a form
• etc.

Once that initial action has been taken, the visitor has converted and is now a lead progressing to the next step of your funnel.

What that step might be and how many steps there are after the first one is totally up to you. If you sell a product, then a upsell could be a good idea.

Think of it like this, when someone does what you ask them to do, they’ve “converted”.

Now that you know what a conversion is, it time to look at how to determine conversion rates.

How To Determine Conversion Rates

Conversion rate is a fairly simple calculation that is used to show the percentage of visitors who has visited your page and converted.

So how does this work?

Let’s say that:

• 4,650 people visited your lead magnet landing page
• 3,200 of those followed through and downloaded your lead magnet

To calculate the conversion rate, you need to use this formula:

The total number of visitors that has converted divided by the total number of visitors multiplied by 100.

So for this example it would look something like this:

3,200 (conversions) / 4,650 (total number of visitors) x 100 (to get result in percent) = 68%

68%!!! That must be a industry leading conversion rate 😉

Jokes aside, I think you get the point, it’s not that hard to calculate your sales funnel conversion rates.

But know this, most sales funnel software such as ClickFunnels, calculates this for you automatically.

So most of the time, the hard work is already done for you.

What Is a Sales Funnel?

Since we are talking about sales funnel conversion rates in this article, I assume that you know what a sales funnel is.

But just in case this is the first time you come into contact with a sales funnel, here is a brief cover…

Basically, a sales funnel is a system that is purposely built to convert website visitors into leads and customers.

For instance, they could convert:

• Prospect into leads
• Leads into paying customers
• Paying customers into repeat customers

That is the core concept of a sales funnel.

However, if you zoom out a bit and look at the bigger picture, you can divide a sales funnel inte 3 parts.

• Top of funnel: Target audience
• Midde of funnel: Leads
• Bottom of funnel: Customers

This is an over simplified view, but it’s good enough to get some understanding of what’s going on.

There are in fact 6 individual stages to a funnel, and if you want to learn more about them, check out this article.

The bottom line is that most businesses today use some kind of sales funnel to covert more leads and generate more sales.

4 Types of Sales Funnel Conversion Rates

When looking at the conversion rates of a sales funnel, you can’t just look at one thing and call it a day.

The fact is that almost all sales funnels have four separate conversion rates:

• Visitor to lead conversion rates
• Lead to customer conversion rates
• Customer to repeat customer conversion rates
• Overall sales funnel conversion rates

This means that you need to keep track of two things:

• First: You need to know what data you’re looking at and what it means
• Second: You need to figure out what data is most important for you

1. Visitor to lead conversions rates

Almost all online sales funnels have the first stage in common. Which is to convert a page visitor into a lead by offering them something in return for their contact information (usually an email address)

This is most of the times done with a simple lead generation funnel:

1. First you create the lead magnet
2. Then you build a landing page for the lead magnet
3. And then you drive traffic to that landing page

So what we are looking at here is the conversion rates for a lead magnet landing page.

This begs the question…

How many of your visitors will give you their contact information and what is the average conversion rate across the board?

The good news is that there is actually proven data on this.

Unbounce did a study on across 10 different industries (with a total of 74,551,421 visitors) and found that the average lead generation landing page conversion rate was 4.02%.

They also found out that the landing page conversion rates varied a lot between different industries.

So, if you want the best idea of what to aim for, you need to look at the conversion data for your particular industry.

2. Lead to customer conversions rates

But the data doesn’t stop there.

Once you get someone’s contact information, you’d want to convert that lead into a paying customer right?

This is for the most part done with email marketing:

1. You send the new lead a sales email
2. They click through and ends up on the sales page
3. Then the lead buys your product

This is the core idea behind how the sales email works in relation to the sales page.

Unfortunately for us, not everyone that click through from the email and visits the sales page buys something.

But it’s not all bad news…

Studies have been done on this and there is some useful data available here as well.

So, how many sales page visitors does actually buy something and what is the lead to customer conversion rate?

Research is showing that around 10% is a good sales conversion rate.

However the average across all the industries clocks in at just 2.5%.

So if you can get your sales page to convert 10% of your leads into customers your doing well, if you get over 10%, you’re doing amazing.

With that in mind, I have encountered a few rare instances where the sales page conversion rate was reaching 40%+.

3. Customer to repeated customer conversions rates

Getting a customer to buy a product once is good, but getting the same customer to buy multiple times is well… awesome.

I’m going to let you in a little secret now…

Turning an existing customer into a repeat customer is cheaper than acquiring a brand new customer. (Mind-blowing information, I know…)

So naturally you want to turn as many of your paying customers into repeat customers.

This is most of the time also done with email marketing just like when you turned your lead into a customer.

Before we more on, here’s the definition of this metric.

Customer to repeat customer conversion rate is the percentage of your existing customers that makes a second purchase, no matter what the second purchase was.

So, what is the customer to repeat customer conversion rate?

It’s very hard to get any exact numbers on this, but based on my research, you should aim for a repeat customer conversion rate of about 20%

Keep in mind though that this number is a minimum guideline.

Here you literally want to maximize this metric to get the most out of your business.

So, screw 20%…

Go for 30%, 56%, or why not 76.2%. The higher this number is, the better.

Because a successful business is not build on one-time sales.

Note: if you have a high lead to customer rate and a low customer to repeat customer rate. It could be a indication that your front end offer doesn’t provide enough value.

4. Overall sales funnel conversions rates

And lastly we have the overall sales funnel conversion rate.

Here you need to take into consideration that this metric will vary a lot depending on how simple or complex your funnel is.

A lead generation funnel is exceptionally simple to calculate. Just use the math example I showed you earlier and you’re good to go.

It’s also fairly easy to calculate the conversion rates on a simple one product sales funnel. Here your overall funnel conversion rate is the same as the lead to paying customer rate.

However…

If you have a complex sales funnel with multiple products in it. Then you’d most likely want to track the percentage of leads that went through the entire funnel.

So, what’s the average overall sales funnel conversion rate?

The only indicator I could find on this was for more complex funnels with multiple products…

When using one of those, you should aim for a overall conversion rate of at least 5%.

Conclusion

There you have it, the data you need to determine your sales funnel conversion rates.

Not only that, but now you also have an indication if your funnels are performing better or worse than the average across your industry.

Now I’d like to hear from you:

What’s the higher conversion rate you’ve ever achieved in one of your funnels?

Let me know by leaving a comment below.