8 Reasons Your Leads Aren’t Converting

Trustmary teamTrustmary team
Last edited: March 16th, 2023

Turning a lead into a paying customer can be a real challenge for any marketer.

This is a frustrating situation most of us have come across. You’ve put lots of effort and resources into developing and setting up an effective lead generation process

Your gated content, website forms, chatbots, and pop-ups do their work well and bring you a handful of prospects who seem interested in your product. 

However, the excitement from the successful work quickly vanishes and turns into disappointment once you see your lead conversion metrics. From a large number of “good leads,” only a few became your customers. 

We know what you’re thinking.

Source

Well… lead conversion is a complex process. Understanding its main principles is the first step to fixing it. 

In this article, we’ll explore eight key reasons why your leads aren’t converting and provide ways to address them.

Understanding Lead Conversion

Before diving deeper into the reasons that prevent your leads from converting, let’s go through the general concepts and stages of lead conversion.

Lead conversion refers to the crucial process of converting a potential lead into a paying customer. It involves a series of strategic actions to nurture the lead throughout the sales funnel, ultimately closing the deal and turning them into loyal customers. 

Lead conversion begins right after the end of lead generation. The process of converting leads entails various techniques and methods, including targeted marketing campaigns, personalized outreach, persuasive sales tactics, and effective communication. 

Even though there are numerous ways to move leads toward conversion, typically, all of them include the following three stages:

  • General lead to a marketing-qualified lead (MQL)
  • MQL to a sales-qualified lead (SQL)
  • SQL to a paying customer 

The first two steps are a part of the lead-scoring process, which involves assigning scores to leads based on their level of engagement and likelihood of conversion. 

The scoring process helps companies prioritize contacts and focus on those most likely to convert, increasing the effectiveness of the sales and marketing pipeline.

lead scoring system


The third step of the lead conversion process involves the entire sales cycle, from initial outreach by a sales representative to the final transaction. This stage requires a comprehensive understanding of the customer journey and effective communication, relationship building, and sales techniques to close the deal and transform the lead into a paying customer.

What Is A Lead Conversion Funnel 

The conversion funnel represents the process by which a potential customer becomes aware of your product or service, expresses interest, and then eventually becomes a paying customer. 

At the beginning of the lead conversion funnel, the business aims to build awareness, generate interest, and capture contact information from prospects. The sale phase begins right after, aiming to convert leads to sales.

lead generation conversion funnel

How Does The Lead Funnel Work

Essentially, leads enter the funnel at the top, which is the widest part, and then proceed through each stage, gradually moving closer to the narrower part of the funnel until they eventually convert into paying customers. 

Marketing handles the top of the funnel (getting leads in), while sales run the bottom (converting leads). But both departments work together to move prospects through the funnel. 

Lead generation funnels include several stages that potential customers pass through: 

  1. Attraction stage. The leads become aware of a brand or identify a problem they need to solve. Businesses can capture the attention of potential customers through targeted marketing efforts, such as social media ads or search engine optimization.
  1. Consideration stage. The lead explores potential solutions to the problem. Businesses have the opportunity to furnish leads with valuable information via various channels.
  1. Decision stage. The lead typically makes a decision on which brand to select to address their issue. Retargeting ads or time-limited offers may be employed to motivate converting leads to take action.
  1. Action stage. The lead makes a purchase. Businesses prioritize convenient checkout, fast and reliable delivery, and attractive post-purchase perks such as loyalty programs and referral bonuses.

These stages are crucial to know to be able to identify blockers in your lead conversion process.

How to Measure Lead Conversion

How do you actually understand that your lead conversion tactics aren’t working? 

The most common way is by measuring your LCR (lead conversion rate) and comparing it to the industry benchmarks

To calculate the metric, just divide the number of converted leads by the total number of generated leads and then multiply by 100. This percentage will determine your LCR.

Aside from calculating your overall LCR, it can be helpful to break it down by individual campaigns or channels. 

formula of the lead conversion rate

What Is a Good Lead Conversion Rate

Long story short, a good lead conversion rate can vary widely depending on the industry, the quality of the leads, and the specific goals of your marketing campaign. 

Healthcare and finance, where the sales cycle can be long and the services are complex, may have a lower sales lead conversion rate. In industries such as e-commerce or retail, where sales cycles are typically shorter and products are more straightforward, conversion rates may be higher.

Now that we have a clear understanding of conversion and its steps, let’s explore the reasons that may prevent leads from converting.

Why Are Your Leads Not Converting

There are several factors that can contribute to leads failing to convert into paying customers.

To improve conversion rates it’s essential to identify and address these underlying factors, optimizing lead generation and nurturing strategies accordingly. 

Let’s take a closer look at the possible reasons why your leads aren’t converting.

1. You Are Targeting the Wrong Audience

Incorrect audience targeting is one of the most common reasons why lead generation strategies fail to be effective, and it can substantially impact the success of a promotional campaign.

Correctly identifying your target audience is essential to ensure your message reaches the right people who are likely to become customers and avoid marketing to uninterested individuals.

Imagine a high-end luxury fashion brand that is targeting budget-conscious shoppers. This brand might be using ads and promotions that focus on affordability, discounts, and budget-friendly prices, but this messaging would attract the wrong type of customer. As a result, the brand might struggle to convert leads.

Taking a step back and reviewing your audience may be the key to improving the conversion rate. 

  • Try to reconsider your buyer persona. Create a detailed customer profile, including demographics, interests, pain points, and motivations.
  • Conduct market research and gather data on your existing customers. Review the list of frequent buyers to see whether you can get insights on buyer persona.
  • Analyze your audience’s behavior, preferences, and purchasing patterns to identify common traits and characteristics.

Once you clearly understand your target audience, you can refine your marketing strategy and messaging to better resonate with it. This may involve adjusting your advertising channels, tweaking your messaging, or developing new products or services catering to their needs.

2. Your Lead Funnel Is Too Wide

Many businesses look too broadly in pursuit of new leads that don’t fit the ideal customer profile. 

While it seems logical to focus solely on the total number of leads, this approach can backfire. 

By spreading your efforts, you risk ending up with a negative ROI on your campaigns. There is no point in trying to acquire every lead possible. 

Let’s suppose your lead generation strategy isn’t targeted enough. You are likely attracting a lot of leads who are only interested in the free resources you offer and will never pay for the actual product or service. Investing time, effort, and resources in this can be a waste. 

The key to success here is narrowing your lead funnel by implementing lead scoring. This way you can prioritize efforts and focus on leads that are most likely to convert into customers.

Lead scoring can be done manually or automatically by using software that analyzes data from various sources, such as website activity, email engagement, social media interactions, and demographic information. 

Lots of modern CRM tools like Hubspot offer internal lead scoring functionality. Alternatively, you can export your data to external tools and score leads there, e.g., from HubSpot to Google Sheets.

3. You Start Selling Too Fast

Imagine a personal account manager starting insistently pushing for conversion immediately after the client signs up for a lead magnet. 

Will it help to convert the lead straight away? 

No. Most of your audience will need time to evaluate your offerings and consider their options. 

It is essential to strike a delicate balance in your sales approach and focus on relationship building, providing freebies, and sharing helpful information during your initial interactions with leads after they sign up. 

Nurture your leads to guide them to the point when they are ready to make a purchase. 

When leads first interact with your company, they may be in the early stages of their buyer’s journey (MQL). 

At this stage, keeping your brand top-of-mind is crucial by providing them with educational content that helps them understand your product or service. As leads progress along the buying process, they may need more personalized attention and direct sales outreach.

By nurturing leads through the sales process and providing them with valuable information, you can convert them into paying customers and build trust. This approach helps turn potential customers into loyal advocates for your brand, driving sustainable growth for your business. 

Remember, if a lead is genuinely interested in converting, they will do so without prompting. By building relationships and providing value to your audience, you can increase the chances of converting leads into paying customers more naturally and sustainably.

4. You Use Wrong Messages

Using wrong messages is a common mistake many companies make when converting leads. 

By using a one-size-fits-all approach to messaging, companies risk sending potential customers the wrong message at the wrong time, which can ultimately harm conversions.

Personalize, personalize, personalize.

Creating relevant content for each step of the customer journey is essential to engage the audience and provide them with the necessary information and support.

Awareness

For instance, in the awareness stage, potential customers need content that helps them understand their problem and your solution. They may seek out informational resources to better understand their pain, establish a framework, and put a name to it. 

Consideration

During the consideration stage, the prospect needs to prepare to purchase, but they are weighing their options for potential solutions. Your objective should be to consider your indirect competitors and educate the prospect on the advantages and disadvantages of each option. 

Creating blog posts or videos that address common questions and using email marketing campaigns with personalized messaging can be effective. 

Decision/Acquisition

In the decision stage, the buyer has already determined their solution strategy, method, or approach. At this point, they identify and evaluate available companies. 

Since the buyer is prepared to spend money, their decision will be influenced by their preference for a provider they like, know, and trust – or by a recommendation from someone they like, know, and trust.

If your client hasn’t received a personal recommendation from a friend, you can mimic the same digitally. Showcasing customer testimonials and reviews is the second effective way to win over the potential customer.

testimonials work better than advertisements

All summed up, the ultimate goal is to understand where your leads are in the sales funnel and create messaging that speaks directly to their needs and interests to increase the chances of converting leads into paying customers and moving to the client onboarding stage

5. Your Value Proposition Is Unclear

Your value proposition is the heart of your business’s messaging. It’s a clear and concise statement that communicates your products or services’ unique value to potential customers. 

A strong value proposition highlights the benefits and results customers can expect when they use your offerings, setting you apart from competitors and attracting potential leads.

However, if your offer is unclear or lacks differentiation, your leads may not convert as effectively. 

Consider offering different pricing plans based on customer needs and clearly outline the benefits of each plan. 

Additionally, provide a clear explanation of any additional fees or charges that may apply. By doing so, you can increase transparency and trust with your potential customers. It would help to communicate why your product or service is better than your competitors. 

To craft a compelling value proposition it’s crucial to highlight the benefits of your product or service rather than just the features. Features outline what your product or service does, whereas benefits demonstrate how it can positively impact your customers.

Once you have a clear value proposition, it’s important to inform your target audience. This can be done through your website, marketing campaigns, and sales pitches. 

6. You Don’t Provide Enough Information

Some businesses believe that prospects who sign up through the lead forms are automatically inclined to become customers. But that’s not true. 

The main motivation behind leaving your contacts in the form of a free e-book or a checklist is searching for more information. 

Therefore, it’s wrong to assume that leads don’t care about product information enough to make purchasing decisions influenced by it. 

If you want your leads to convert to customers, it’s essential to present enough facts and details to support them in decision-making.

Keep in mind that many buyers may also need time to research your product on their own. Therefore, it’s your task to provide them with sufficient information about your product’s pros. Make sure your landing pages include up-to-date information.

It’s a good idea to proactively communicate with clients and ask if they have any questions about your product or services.

Consider connecting with them via emails, social media messages, or SMS marketing. Think of providing free demos and trials, especially if you offer a SaaS product.

Also, you can send details about your product advantages and updates to your customer to ensure they are aware of how to get the most out of what they’re buying.

7. You Haven’t Built Enough Brand Awareness

Building brand awareness is essential to increase potential customers’ chances of choosing your brand. If your target audience doesn’t know who you are, it’s unlikely they’ll be interested in what you have to offer.

To build brand awareness it’s important to develop a strong brand identity that resonates with your target audience. This includes defining your brand values, messaging, and visuals.

Social media is a powerful tool for building brand awareness. Create a social media presence on platforms where your target audience is most active. Use social media to share valuable content, interact with your audience, and promote your brand.

Trust and credibility are also crucial when it comes to increasing conversion rates. Establish your credibility by showcasing your expertise in your industry. This could be through thought leadership content and case studies. 

Actively seek out customer feedback and use it to improve your offerings and customer experience. This can help demonstrate that you value your customer’s opinions and are committed to providing the best service possible.

Building brand awareness takes time and effort, but it’s essential for long-term success. 

brand trust translates to more sales

8. You’ve Failed to Build Trust

If you have nailed all the above steps, it’s likely that you have already built trust for your brand. After all, speaking to your target customer and offering them a great value proposition with spot-on personalized messaging should be convincing enough.

However, one thing you might have missed is social proof.

principle of social proof

We already briefly covered the power of recommendations and testimonials. People are more likely to trust you if there are other people who trust you.

No matter how hard you try, you will never have as powerful sales argument as a recommendation from someone who your potential clients trust and look up to.

Ways you can showcase social proof and credibility are e.g.

  • Adding reviews to your website (a free Google review widget is the fastest way to start).
  • Sharing user-generated content in your marketing channels.
  • Getting endorsements from experts, authority figures, and celebrities.
  • Acquiring certificates and badges.
  • Communicating your value proposition through numbers (e.g. 90% of our customers see results within the first month, we already have over 1000 happy customers, we have saved our customers on average 100k dollars a year, etc)
  • Setting up a referral program.

Final Thoughts

In conclusion, converting leads into customers is crucial for the success of any business, but it can be challenging to understand why your leads aren’t converting. 

By identifying the reasons why your leads are not converting, you can make the necessary changes to improve your conversion rates and ultimately grow your business.

Some common reasons why your leads are not converting include targeting the wrong audience, having a lead funnel that is too wide, selling too fast, using the wrong messages, unclear value proposition, not providing enough information, not having built enough brand awareness, and not succeeding at building trust for your brand. Each of these factors can impact your ability to convert leads into customers, so it’s essential to analyze your sales process carefully and identify areas for improvement.

Take action and implement these recommendations today. Don’t hesitate to start making changes now and experience positive results for yourself.