The Ultimate Sales Funnel Conversion Rate Benchmarks for 2021

As a growth lead at Pareto, I often get asked about sales funnel conversion rates. Business owners and marketers want to know if their funnel conversion rates are good, how they compare to industry benchmarks, and what they can do to improve them.

In this article, I will provide a comprehensive guide to sales funnel conversion rate benchmarks for 2021. I will explain what funnel conversion rates are, how to calculate them, and what good conversion rates look like across different industries and channels. I will also provide strategies to optimize your funnel conversion rates and tools to track them.

Let’s dive in.

1. Introduction to Sales Funnel Conversion Rates

Sales funnel conversion rates measure the percentage of people who move from one stage of the sales funnel to the next. The sales funnel typically consists of the following stages:

Awareness: The prospect becomes aware of your brand and products/services.
Interest: The prospect shows interest in your products/services and engages with your content.
Consideration: The prospect considers your products/services and compares them to alternatives.
Intent: The prospect intends to make a purchase and takes action.
Purchase: The prospect becomes a customer and completes the purchase.

Each stage of the funnel represents an opportunity to lose or gain customers. By measuring your funnel conversion rates, you can identify where you’re losing customers and optimize your funnel to improve them.

2. Understanding the Benchmarks: Industry and Channel

Funnel conversion rates vary by industry and channel. For example, a B2B SaaS company might have different conversion rates than an e-commerce store. Similarly, conversion rates might vary by channel, such as social media, email, or search.

It’s important to benchmark your funnel conversion rates against your industry and channel to get an accurate picture of how you’re performing. Here are some benchmarks to consider:

Industry Benchmarks

E-commerce: According to a study by Monetate, the average e-commerce conversion rate is 2.86%. However, conversion rates can vary widely by industry and product type. For example, fashion and apparel have a lower conversion rate of 1.41%, while pet care has a higher conversion rate of 4.45%.
B2B SaaS: According to a study by OpenView, the average conversion rate for free trials in B2B SaaS is 14.6%, while the average conversion rate for paid trials is 8.2%.
Financial Services: According to a study by Formstack, the average conversion rate for financial services is 10.7%.

Channel Benchmarks

Social Media: According to a study by Hootsuite, the average conversion rate for Facebook ads is 9.21%, while the average conversion rate for Instagram ads is 2.79%.
Email: According to a study by Constant Contact, the average email open rate is 16.22%, while the average click-through rate is 7.43%.
Search: According to a study by Wordstream, the average conversion rate for Google Ads is 3.75%.

It’s important to keep in mind that these benchmarks are just averages and your conversion rates might be higher or lower depending on your specific business and audience.

3. How to Calculate Your Funnel Conversion Rate

To calculate your funnel conversion rate, you need to track the number of people who move from one stage of the funnel to the next. Here’s how to do it:

Determine the stages of your sales funnel: Start by mapping out the different stages of your sales funnel. For example, you might have an awareness stage, an interest stage, a consideration stage, an intent stage, and a purchase stage.
Track the number of people at each stage: Use analytics tools like Google Analytics to track the number of people at each stage of your funnel. For example, you might track the number of website visitors, the number of people who engage with your content, the number of people who add items to their cart, and the number of people who complete a purchase.
Calculate your conversion rates: Divide the number of people at each stage by the number of people at the previous stage and multiply by 100 to get your conversion rate. For example, if you had 10,000 website visitors and 1,000 of them added items to their cart, your cart abandonment rate would be 90%, and your conversion rate from website visitors to cart additions would be 10%.

4. What’s a Good Funnel Conversion Rate?

A good funnel conversion rate depends on your industry, channel, and specific business. However, here are some general benchmarks to keep in mind:

Awareness to Interest: A good conversion rate from awareness to interest is 20-40%.
Interest to Consideration: A good conversion rate from interest to consideration is 10-20%.
Consideration to Intent: A good conversion rate from consideration to intent is 5-10%.
Intent to Purchase: A good conversion rate from intent to purchase is 2-5%.

Keep in mind that these are just guidelines and your conversion rates might be higher or lower depending on your specific business and audience.

5. Strategies to Improve Your Funnel Conversion Rate

If you want to improve your funnel conversion rates, here are some strategies to consider:

1. Optimize Your Website

Your website is the foundation of your funnel. If your website is slow, confusing, or unappealing, you’ll lose potential customers. Here are some ways to optimize your website:

Improve your website speed: Use tools like Google PageSpeed Insights to identify speed issues and optimize your website for faster load times.
Simplify your website design: Use a clean and simple design that’s easy to navigate and visually appealing.
Optimize your website copy: Use clear and concise copy that highlights the benefits of your products/services and addresses your audience’s pain points.

2. Personalize Your Messaging

Personalized messaging can increase your conversion rates by making your audience feel seen and understood. Here are some ways to personalize your messaging:

Use dynamic content: Use tools like HubSpot or Marketo to show different content to different segments of your audience based on their behavior and preferences.
Segment your audience: Divide your audience into different segments based on their behavior, preferences, and demographics, and tailor your messaging to each segment.
Use retargeting: Use retargeting ads to show your products/services to people who have already shown interest in them.

3. Simplify Your Checkout Process

Cart abandonment is a common problem for e-commerce stores. Here are some ways to simplify your checkout process and reduce cart abandonment:

Use a simple checkout form: Use a checkout form with as few fields as possible to reduce friction and make it easy for customers to complete their purchase.
Offer multiple payment options: Offer multiple payment options, such as credit card, PayPal, and Apple Pay, to make it easy for customers to pay.
Use exit-intent pop-ups: Use exit-intent pop-ups to offer discounts or free shipping to customers who are about to leave your website without completing their purchase.

6. Tracking Your Funnel Conversion Rate with Databox

Databox is a powerful analytics tool that can help you track your funnel conversion rates and other KPIs in real-time. With Databox, you can create custom dashboards that show your funnel conversion rates, traffic sources, revenue, and other important metrics.

Here are some steps to track your funnel conversion rates with Databox:

Connect your data sources: Connect your website analytics tools, email marketing tools, and other data sources to Databox.
Create a custom dashboard: Use Databox’s drag-and-drop interface to create a custom dashboard that shows your funnel conversion rates and other KPIs.
Set up alerts: Set up alerts to notify you when your funnel conversion rates or other KPIs fall below a certain threshold.

By tracking your funnel conversion rates with Databox, you can quickly identify problems in your funnel and take action to optimize them.

7. Conclusion: Take Action to Optimize Your Funnel

In conclusion, sales funnel conversion rates are a critical KPI for any business that wants to grow. By benchmarking your funnel conversion rates against your industry and channel, calculating your conversion rates, and optimizing your funnel, you can increase your conversion rates and grow your business.

Use the strategies and tools outlined in this guide to take action and optimize your funnel for maximum growth.