In the current business landscape, we hear the term ‘conversion rate’ quite often and interpret sales-focused data in line with it to improve our results. So, what is a conversion rate?
Conversion rates depict the percentage of targeted leads that arrive at the desired outcome (clicks, forms, downloads, closed deals…) and are often measured against a business’ projected results.
For example, if a hundred qualified leads are placed at the mouth of the sales funnel, and only 15 filter through and actually make a purchase, then the conversion rate here is 15%. However, if the business initially projected a 35% conversion rate, then the result, whether or not it aligns with the industry’s benchmark, is unsatisfactory. While there exist average conversion rate standards for different industries, that determine whether or not a business is yielding lucrative results, businesses can also set their own standards and function in line with them.
In this blog, we touch on factors that influence good conversion rates, highlight what high conversion rates mean for a business, and delve into why your business would benefit from a gifting platform solution like Giftsenda.
What Is a Good Conversion Rate?
Conversion rates, unfortunately, cannot be vetted on a generalized analysis, and this is due to the uniqueness of each industry vertical, and its accompanying product and service offerings.
The more expensive a product is, the lengthier the buying journey and the lower the conversion rate. However, the cheaper and more accessible the product is, the shorter the buying journey and the higher the conversion rate.
A lot of research has been done to understand what rates determine the performance that’s above the break-even point, and businesses can consult data that’s relevant to their vertical and region to understand how they’re performing. To get a good idea of the conversion rates that your business can aim for, we suggest you have a look at this article by Ruler Analytics.
What Does a Good Conversion Rate Mean For a Business?
When businesses base their ROI analyses on conversion rates, they’re able to measure the likelihood of reaching projected sales targets and understand how their marketing efforts fare in comparison to those of their competitors. Moreover, they’re able to :
- Vet what channels garner the best results
- See if their copy and calls to action are persuasive
- Identify valuable users (leads with higher conversion probabilities)
- Identify points in their user journeys that cause high bounce rates, and remedy these.
A high conversion rate means a business has hit the bull’s eye when it comes to identifying its target market and which channels they’re prevalent on, its marketing messaging is compelling and calls attention, its products are relevant and sought after, and there is high ROI optimization potential. That is, the sail needs not be adjusted, but requires enhancement in order to retain performance.
Why Are Gifts Unconventional Methods To Increasing Conversion Rates?
Though widely used by corporations of all sizes, corporate gifting remains an unconventional tool, and this is because it is yet to be recognized as a solid sales enablement and marketing element. It seems the “but we’re spending more”, or “we’re not in the business of gifting, we’re sellers” remains the leading barrier that separates businesses from realizing their relationship-strengthening potential.
It is, however, important to note that while not part of the selling or buying process, gifts break the robotic ‘we sell, you buy’ element that makes consumers feel disconnected from the brands that sell their favorite products. They create common ground and give buyers and sellers leveled engagement grounds. ‘You buy our products during our birthday specials, so we’ll celebrate you on yours’. Corporate gifting helps businesses break away from one-sided sales approaches and provides them with opportunities to reward, recognize and delight their existing customers, incentivize their staff, and attract leads.
As discussed in our white paper, gifts appeal to basic human psychology and communicate that the sender cares, sees, and values the recipient. When buyers receive such attention, even if it’s simple branded merchandise they’ll likely never use, an affinity for the brand is built. Remember, the aim is to make customers, not sales.
When placed at strategic points of the sales funnel, and offered on the business online marketing platforms, for example, links or forms, gifts motivate action.
According to a recent study, 67% of customers prefer self-service over speaking to a company representative.It appears that people desire more control of their buying journey, and web forms provide users with convenience, enabling them to access the information they need without the added pressure of making a purchase.
If the desired result is to get lead traffic to fill out forms or click a link, offering a ‘first contact’ gift as simple as an e-gift card or coffee voucher will create a sense of obligation and result in action. This is just one of many examples where gifts can be used.
So, while unconventional, well-curated gifts are guaranteed to gauge and retain your desired audience’s attention. The means do justify the end – even if they require a financial investment. The good news is that in some countries, businesses can use corporate gifts as tax deductions – for example in the USA.
How Would You Benefit From a Gifting Platform Solution?
Giftsenda is an international corporate gifting platform, designed to enable businesses to break through the noise and make meaningful connections – driving more revenue and conversions to increase ROI.
The platform enables businesses to buy, send and track gifts worldwide from one central space.
One of the main benefits of using a gifting platform like Giftsenda is the fact that you have access to automated gifting tools that enable you to send gifts via email or shareable gift links, allowing recipients to choose their gifts, in more than 200 countries. We source gift items from local suppliers to help you save on shipping and customs fees. This not only makes cost sense, but eliminates the possibility of senders selecting culturally inappropriate gifts.
The platform also integrates with CRMs such as Salesforce and Hubspot for a streamlined gifting experience, and has a Gmail add-on that allows you to send gift invites directly from your Gmail interface.
Ready to get started with reward-based corporate gifting to celebrate and delight your clients? Book a 30-minute demo with one of our Gift Campaign Managers to see how our gifting platform works and to create an account.