Why Your Leads Aren't Converting (+ How to Improve Lead Conversion Rates)

We all know that generating leads is a big win in sales and marketing, but the real challenge is turning those leads into loyal customers.

If you’re feeling frustrated with a bunch of leads that just won’t convert, you’re not alone. Understanding why this happens is key to fixing the problem and boosting your success.

In this guide, we’ll dive into the common issues and share some super practical tips to help you turn those leads into happy, paying customers.

Let’s get started and make your marketing efforts really pay off!

What is lead conversion?

Lead conversion is the process of turning potential customers (leads) into paying customers. 

It’s the critical step where interest turns into action, transforming curious browsers into buyers. 

Why lead conversion matters

Higher conversion rates mean you’re effectively turning your marketing investment into revenue. This not only boosts your bottom line but also improves your marketing ROI, proving that your strategies are working.

Successful lead conversion also builds customer trust and loyalty. When you understand your leads’ needs and guide them through their journey, you create a positive experience that can lead to repeat business and referrals. This fosters long-term relationships that are invaluable for any business.

In short, improving lead conversion rates helps you make the most out of your existing leads, reducing the need for constant new lead generation and allowing for a more sustainable growth strategy.

But, it’s easier said than done, in most cases. Let’s see what you can do to make it happen.

9 most common reasons why your leads aren't converting

Struggling with leads that aren’t converting can be super frustrating. 

Here’s why this happens and how you can turn things around.

Reason #1: You’re not targeting the right audience

One of the biggest reasons your leads aren’t converting is because you’re not reaching the right audience. 

It’s so important to ensure that your marketing efforts are directed toward people who are genuinely interested in and can benefit from your product or service.

Here’s how you can address this issue.

Define your ideal customer

Knowing who your ideal customer is forms the foundation of effective marketing. Start by creating detailed buyer personas. These are fictional characters that represent your perfect customers, based on market research and real data about your existing customers.

1. Demographics: Identify key demographic details such as age, gender, income level, education, and occupation.
2. Psychographics: Dive into their interests, values, lifestyle, and behavior patterns. What are their goals, challenges, and pain points?
3. Behavioral data: Analyze their purchasing behavior, brand loyalty, and interactions with your product or service. What triggers them to make a purchase?

By defining these characteristics, you can tailor your marketing messages to resonate with your target audience, making your campaigns more effective and increasing your chances of conversion.

Still, many would argue that buyer personas are outdated. And there is some merit to that statement. 

You want to know who your ideal customers are? Get out there, start promoting your product/service, and see what kind of customers you’re getting. 

What are their needs? What kind of help do they need? Why did they buy your product/service? What problems are they trying to solve? 

These are all crucial questions you absolutely need to answer. But don’t worry if you don’t know the answers right away — that’s how this works. 

Refine your marketing strategies

Once you have a clear picture of your ideal customer, it’s time to refine your marketing strategies to ensure you’re reaching them effectively.

Here’s what to do:

1. Segmentation: Divide your audience into smaller segments based on shared characteristics. This allows for more personalized and targeted marketing campaigns.
2. Channel selection: Choose the right marketing channels that your ideal customers frequent. This could be social media platforms, email marketing, content marketing, or paid advertising. Whatever works best for your audience.
3. Content personalization: Craft personalized content that speaks directly to the needs and interests of each segment. Use the language and tone that resonates with them, and address their specific pain points.
4. A/B testing: Continuously test different versions of your marketing messages, visuals, and calls to action to see what works best. Use the insights gained to optimize your campaigns. It takes some effort, but the results are pure gold.
5. Feedback loop: Implement a feedback loop to gather insights from your audience. Use surveys, social media interactions, and direct feedback to understand what’s working and what needs improvement.

The key is to be intentional and data-driven in your approach. Your marketing efforts must always be aligned with the needs and preferences of your target audience. 

Keep in mind — this is a never-ending process. Your marketing can always be better, your results can always be improved, and your processes can always be optimized. 

And if you're new to A/B testing and personalization, here's a quick guide on how to do it perfectly.

Just take it easy, one step at a time.

Reason #2: You’re not doing proper lead qualification

If you're not properly qualifying your leads, you might be wasting time on prospects who aren’t ready to buy. Here’s how to make sure you’re talking to the right people:

Implement lead scoring systems

Lead scoring helps prioritize high-potential leads by assigning values based on their behavior and characteristics. To implement an effective lead scoring system:

• Identify key criteria: Determine what makes a lead valuable, such as engagement level, company size, and buying intent.
• Assign scores: Use a numerical system to rank leads based on these criteria.
• Adjust over time: Continuously refine your scoring model based on performance data and feedback.

Here's an example of what a lead scoring table could look like.

And here's

The higher the score, the better.

Use CRM tools effectively

CRM tools can streamline lead qualification by organizing and managing lead data. If you’re a small business owner, you’re probably looking to use as less tools as possible. But having a CRM in your toolkit is almost unavoidable. 

To maximize the effectiveness of your CRM tools:

• Centralize data: Keep all lead information in one place for easy access and analysis.
• Automate processes: Use CRM automation features to track lead interactions and update scores automatically.
• Analyze trends: Regularly review CRM reports to identify patterns and refine your lead qualification process.

By improving lead qualification through these methods, you'll focus your efforts on the most promising leads, increasing your chances of conversion.

If you're still wondering what CRM does and how it can help you boost lead conversion rates, here's a great guide explaining it in detail.

Reason #3: Your follow-ups are slow or ineffective

Following up with leads in a timely and effective manner is crucial for conversions. If your follow-ups are slow or poorly executed, you risk losing potential customers. 

Here’s how to improve your follow-ups:

Time your follow-ups right

The timing of your follow-ups can make a big difference.

• Immediate response: Aim to follow up within 24 hours to keep the lead engaged.
• Multiple touchpoints: Schedule follow-ups at regular intervals (e.g., after 1 day, 3 days, 1 week).
• Personalized messages: Tailor your follow-ups to the lead’s behavior and interests.

Luckily, we have an entire guide written for this! You’ll find out exactly what to do in our step-by-step guide for follow-ups. 

And before you move on, check this small diagram of a follow-up campaign. It's very rare to see a sale occur on the 1st or even the 2nd email/contact. Consistency and perseverance are key.

Leverage automation tools

Automation tools can streamline your follow-up process and ensure consistency.

• Email automation: Use tools to send personalized follow-up emails automatically based on lead actions.
• CRM integration: Integrate follow-up schedules with your CRM to track interactions and reminders.
• Multi-channel outreach: Use automation to manage follow-ups across multiple channels (email, SMS, social media).

By timing your follow-ups right and leveraging automation tools, you can maintain engagement with your leads and increase your chances of conversion. 

Just imagine if your proposals were sent with Propoze, follow-ups were automated with a tool like Apollo or Mailchimp, all of the interactions were automatically recorded in your CRM of choice. 

Now that’s some powerful stuff! 

Here's a great video on how to start using HubSpot CRM. The good thing is — you can even start using it for free!

Reason #4: You’re not providing enough information

When leads don't have enough information to make an informed decision, they're unlikely to convert. Providing detailed, easily accessible information is key to improving conversion rates. 

Here’s how:

Creating comprehensive product pages

Product pages should be thorough and informative to answer any potential questions:

• Detailed descriptions: Include specifications, features, and benefits.
• High-quality images and videos: Visual content can help illustrate product use and benefits.
• Customer reviews: Add testimonials and reviews to build trust.

Just remember what kind of information you usually look for when buying a product. 

You look at the reviews, you view the technical info, you check out the description, figure out what kind of use cases the product has, you check the images, videos, and all the available information before you complete the purchase. 

Your customers are the same. Just try to make it easy for them.

Here's a great infographic to help you out — especially if you're running a B2C business!

Utilize FAQs and detailed guides

FAQs and guides can address common questions and concerns:

• Frequently asked questions: Compile common queries and provide clear, concise answers.
• In-depth guides: Create how-to guides, tutorials, and detailed explanations to help leads understand how to use your product effectively.

By ensuring your leads have all the information they need, you can reduce hesitation and increase conversion rates.

For example, if you’ve already received one question many times, it’s a good idea to answer this question in your FAQ section or page. Or if your product is a bit complex and requires a bit more effort to use, try creating step-by-step instructions for your customers. 

They’ll read it. 

Reason #5: You’re using overly aggressive sales tactics

Being too pushy can drive potential customers away. It's crucial to strike a balance between being proactive and patient. 

Here's what you can do.

Balance aggression with patience

• Understand buyer readiness: Not every lead is ready to buy immediately. Gauge their interest level and proceed accordingly.
• Soft touchpoints: Use gentle reminders and informational content rather than constant sales pitches.
• Listen more: Pay attention to the lead’s needs and respond thoughtfully, rather than pushing for a quick sale.

Focus on relationship building

• Value-driven interactions: Provide valuable content and insights that help the lead, rather than just trying to sell.
• Consistent communication: Keep in touch regularly but make it meaningful and relevant to their interests.
• Personal connection: Build rapport by personalizing your communications and showing genuine interest in solving their problems.

By balancing aggression with patience and focusing on building relationships, you can create a more positive experience that leads to higher conversion rates.

It’s important to remember that we’re working with people here, and there’s nothing like a genuine human connection to help you move the deal forward.

Reason #6: Your value proposition is unclear

If your leads don’t understand why they should choose your product or service, they’re unlikely to convert. Your value proposition needs to be clear and easy to understand. 

Here’s what you can do.

Craft a compelling value proposition

• Identify unique benefits: Highlight what sets your product or service apart from the competition. Focus on unique features and benefits that solve specific problems for your target audience.
• Be specific: Use clear, concise language to describe how your offering improves the user’s situation or fulfills their needs.
• Test and refine: Continuously test your value proposition with your audience and refine it based on feedback.

Communicate value effectively

• Consistent messaging: Ensure that your value proposition is communicated consistently across all marketing channels, from your website to social media and email campaigns.
• Visuals and examples: Illustrate your value proposition with visuals, infographics, and real-life examples. This helps make the benefits more tangible and easier to understand.
• Customer testimonials: Use testimonials and case studies to show real-world results and build trust.

By crafting a compelling value proposition and communicating it effectively, you can clearly convey the unique value you offer, making it easier for leads to see why they should choose you.

Remember — what people don’t understand, people won’t buy. Simple as that.

Reason #7: There is a lack of trust and social proof

Building trust with your leads is essential for conversions. Without trust and social proof, potential customers may hesitate to buy from you. 

Here’s how to establish credibility:

Gather and display testimonials

• Collect authentic feedback: Reach out to satisfied customers and ask for their testimonials. Ensure the feedback is genuine and reflects their true experience.
• Showcase prominently: Display testimonials on key pages of your website, such as the homepage, product pages, and landing pages. Use quotes, star ratings, and customer photos to make them more engaging.
• Update regularly: Keep testimonials fresh by regularly adding new ones to reflect ongoing customer satisfaction.

Use case studies to build trust

• Highlight success stories: Create detailed case studies that showcase how your product or service has successfully helped other customers. Include specific metrics and results to demonstrate effectiveness.
• Include diverse examples: Provide case studies from a variety of industries and use cases to appeal to a broader audience.
• Make them accessible: Publish case studies on your website and promote them through your blog, social media, and email campaigns.

Using testimonials and case studies can build trust and demonstrate the real-world impact of your offerings, encouraging leads to convert.

Here are 5 types of social proof you can leverage to build trust with your customers.

Once your leads can clearly see that your products/services are massively beneficial to your customers, they’ll make their purchasing decisions much easier. 

Reason #8: You’re not providing a good customer service

Excellent customer service can make or break a sale. If your customer service is lacking, leads might be discouraged from converting. 

Here’s how you can improve.

Train your customer service team

• Comprehensive training programs: Implement thorough training programs covering product knowledge, communication skills, and problem-solving techniques.
• Regular updates and refreshers: Keep your team updated with regular training sessions to ensure they are aware of the latest product updates and best practices.
• Empathy and active listening: Train your team to listen actively and empathize with customers to provide personalized and effective solutions.

Now, this suggests that you have a support team. But the chances are you don’t. 

The best thing you can do is — ensure that every team member of your team can provide adequate support to your leads and customers. If you’re an early-stage startup carving your way through the market, you’ll want all your team members to know what, how, and why something works the way it does.

However, if you’re offering services, you may want to have your sales personnel (including you) receive training in customer service, problem-solving, and communication. 

Implement feedback loops

• Collect customer feedback: Use surveys, feedback forms, and direct interactions to gather customer insights on their experiences.
• Analyze and act: Regularly review feedback to identify common issues and areas for improvement. Implement changes based on this feedback to enhance service quality.
• Close the loop: Inform customers about the changes made based on their feedback, showing them that their input is valued and acted upon.

Here's a 5-step diagram showing how feedback loops work in general. Remember that this is a continuous process — and that you'll refine and update it many times over.

Don't get bogged down by having too many steps in the beginning; that's something you'll work out along the way. But you'll want to establish at least a simple feedback process.

Talk to your customers, find out what they like and don't like, what you can do better, and what kind of needs they have.

By investing in training your customer service team and implementing effective feedback loops, you can significantly improve the quality of service, enhancing customer satisfaction and conversion rates.

And even though it may sound tempting to jump ahead, don’t skip surveys and feedback forms. Often you’ll receive some great feedback — and get to know your customers better.

Reason #9: Your website has usability issues

A website that's difficult to navigate or slow to load can turn potential customers away. Improving website usability is crucial for better lead conversion rates. 

Here’s how to do it.

Conduct regular website audits

• Performance checks: Regularly test your website’s speed and performance using tools like Google PageSpeed Insights.
• User behavior analysis: Use heatmaps and session recordings to understand how users interact with your site. Tools like Hotjar and MS Clarity will work best here.
• Fix issues promptly: Identify and address bugs, broken links, and other usability issues as soon as they arise. You can use Semrush or Ahrefs to find a good portion of your website issues. 

Ensure user-friendly design

• Intuitive navigation: Design a clear and logical navigation structure to help users find information easily. 
• Responsive design: Ensure your website is mobile-friendly and looks great on all devices.
• Clear calls to action: Make sure buttons and links are easy to find and understand, guiding users towards conversion.

By conducting regular audits and focusing on user-friendly design, you can create a smooth and enjoyable experience for your visitors, leading to higher conversion rates.

4 strategies to improve lead conversion rates

Boosting your lead conversion rates requires a combination of well-planned strategies tailored to engage and nurture your leads effectively. Here’s how to enhance your lead conversion efforts:

Strategy #1: Improve your lead nurturing processes

Improving lead nurturing processes can significantly boost your conversion rates. Here’s how to enhance your approach:

Utilize email marketing campaigns

• Segment your audience: Divide your email list based on criteria like behavior, demographics, and purchase history to send more relevant messages.
• Automated drip campaigns: Set up automated sequences that provide valuable content at the right time, guiding leads through the sales funnel.
• Engaging content: Craft compelling subject lines and content that address your leads’ pain points and offer solutions.

If there’s one channel we simply mustn’t overlook — it’s email. Email is, without a doubt, the biggest moneymaker for hundreds of thousands of companies across the globe. 

And why wouldn’t it work the same for you? 

If you’re still in your early stages, segmenting your audience may not be your highest priority. But the drip campaigns are something you can’t afford not to do. 

Imagine this: a website visitor subscribes to your newsletter. Each week, you’ll send them a weekly newsletter. But this can go even further. 

What if just 30 minutes after signing up you reach out to them and say hello? 

And if 3 days after the 1st email you send them an email explaining your product/service and its benefits?

And if 7 days after the 1st email you send them another email with another informative piece of content? 

This can all be automated — and that’s the beautiful thing about email drip campaigns. Here’s a full guide to teach you how to set up and manage your email drip campaigns. 

Personalizing your communication

• Use personalization tokens: Include the recipient’s name and other personalized details in your emails to make them feel unique and targeted.
• Behavioral triggers: Send personalized emails based on user actions, such as browsing specific products or abandoning a cart.
• Dynamic content: Tailor the content within your emails to different segments, ensuring that each lead receives the most relevant information.

By enhancing your lead nurturing processes with targeted email marketing campaigns and personalized communication, you can significantly improve your lead conversion rates.

The image above shows that only 20% of startups use behavioral targeting to enhance their communication. Try considering all the items in this image as a checklist.

The more items on the checklist you can resolve, the higher chances you'll have in converting your email subscribers.

Just a reminder before we move on — we’re dealing with humans here. And we humans like to be treated as humans, rather than a number in an Excel sheet. If you know your lead’s name, address them by name. If you have information about their activities such as cart abandonment, why not email them with a short personal message and ask to help them finish their purchase.

We're not looking to sell something. We're looking for problems to solve and people to help.

Remember that always! 

Strategy #2: Optimize your landing pages

Effective landing pages are crucial for converting leads.

Here's how to optimize them:

A/B testing different elements

• Headlines and copy: Test different headlines and body copy to see what resonates most with your audience.
• Images and videos: Experiment with various visuals to find the most engaging ones.
• Forms and fields: Adjust the number and type of form fields to reduce friction and increase submissions.
• Call to action (CTA): Test different wording, colors, and placements of your CTAs to see what drives the most conversions.

A/B testing is a comprehensive topic, but you can easily work out what it is and how it could possibly work.

Here's a short video explaining what A/B testing is and how it works. There are tons of tools you can use to A/B test your website - and here's the list of A/B testing tools you should try out!

Ensuring clear calls to action

• Prominent placement: Make sure your CTAs are easily visible and stand out on the page.
• Action-oriented text: Use compelling, action-oriented language that clearly tells visitors what you want them to do.
• Consistency: Ensure that the CTA is consistent with the message and content of the landing page, providing a smooth user experience.

By continuously testing and refining these elements, you can significantly improve the effectiveness of your landing pages and boost conversion rates.

We humans, for some weird reason, respond well to commands (especially when this command works in our favor). When you tell your customers/website visitors to do something, they'll likely do it. The power of words is unimaginable, but nailing it down is a bit tricky.

Here are some of the greatest call-to-action examples that work (and why they work).

Strategy #3: Provide value at every funnel stage

Delivering the right content at each stage of the sales funnel is crucial for nurturing leads and driving conversions.

Here’s how to do it:

Creating stage-specific content

• Awareness stage: Focus on educational content that identifies problems and introduces your brand. Blog posts, infographics, and social media content work well here.
• Consideration stage: Provide in-depth information like case studies, whitepapers, and webinars that highlight how your solution can help solve their problems.
• Decision stage: Offer detailed product comparisons, customer testimonials, and free trials or demos to convince leads that your solution is the best choice.

Above, you can see exactly which content type you should use at each stage of the marketing/sales funnel.

The further the lead progresses down the funnel, the more you'll get to talk to them about your product, the problems you solve, comparisons between you and your competitor, and so on.

But at the very top of the funnel, your lead may not even be aware of the problem you're solving. It takes some time to warm up your leads — and stage-appropriate content is the right way to do it.

And if you still don't have a funnel created, we've written a guide on how to create a conversion funnel from scratch! Don't miss it.

Using retargeting strategies

• Behavior-based retargeting: Use ads to re-engage visitors who showed interest but didn’t convert, targeting them with specific offers or reminders.
• Email retargeting: Send personalized follow-up emails to leads who interacted with your content but haven’t taken the next step, offering additional information or incentives.
• Cross-platform retargeting: Reach your audience across multiple channels (social media, display ads, search ads) to keep your brand top-of-mind and guide them back to your site.

It is said (and rightfully so) that the most money is made in retargeting. That's true.

The chances of converting your leads/visitors during the 1st interaction are small, but it happens sometimes. On average, it takes around 7 interactions to turn your lead into a customer.

This means that even if you've, let's say, already contacted your leads, but they weren't ready to buy — there will be a chance to do so again.

You create that chance by retargeting with Google Ads, Facebook Ads, or other advertising platforms. And even through email!

Here's a detailed guide to help you use retargeting strategies to convert your leads.

Strategy #4: Offer promotions and incentives

Providing well-crafted promotions and incentives can significantly boost your conversion rates. Here’s how to make them irresistible:

Crafting irresistible offers

• Understand customer needs: Know what your customers value most and tailor your offers to meet those needs.
• Bundle products/services: Combine complementary products or services at a discounted rate to add value.
• Exclusive deals: Offer exclusive discounts or perks to create a sense of exclusivity and urgency.

Using limited-time promotions

• Create urgency: Use time-sensitive offers to encourage immediate action. Phrases like "limited time only" or "offer ends soon" can motivate quick decisions.
• Highlight savings: Clearly display the benefits and savings of the promotion to attract attention.
• Promote widely: Use multiple channels—email, social media, your website—to spread the word and reach a wider audience.

By crafting irresistible offers and leveraging limited-time promotions, you can drive more immediate actions and boost your conversion rates.

One thing's for sure — it's easier said than done.

Just think about it this way: If a customer has a specific need, I have a higher chance of converting them if I make a promise to satisfy that specific need and solve any problems they may have.

Even better, if you can highlight the urgency of your deal in communication (and sprinkle in some exclusive deals for your hottest leads), you can close your lead.

Case studies and examples: How other companies succeeded in converting their leads

Let’s dive into some real-life success stories to see how other businesses have managed to boost their lead conversion rates. Looking at these case studies can give us a ton of great ideas and practical tips.

By seeing what worked for them, you’ll get some inspiration and actionable tactics to improve your own lead conversion rates.

Let’s get started!

Twenty20: Boosting conversions with free trials

Twenty20, a visual media company, was facing difficulties in converting users into paid subscribers. Traditional sales tactics weren’t delivering the desired results.

What did they do? 

They shifted their focus to digital strategies, particularly search engine marketing and social media advertising.

They employed an Alpha-Beta-Gamma testing strategy to effectively target prospects and promoted free trial sign-ups instead of pushing for immediate paid subscriptions.

How did they do it?

• Search engine marketing: They optimized keywords and ad placements to attract high-intent users.
• Social media advertising: Engaging ads were created to drive traffic to the free trial offer.
• A/B testing: Various ad creatives and landing pages were tested to identify the most effective combinations.
• User experience improvements: Enhancements were made to the sign-up process to reduce friction and encourage trial sign-ups.

What did they achieve?

This comprehensive approach led to a 403% increase in website traffic and a 16.42% boost in marketing-qualified leads (MQLs). Advertising expenses were slashed by 72.49%, showcasing the efficiency of their revamped strategy.

Unfortunately, Twenty20 shut down in July 2022 due to Envato's broader product strategy.

Still, this shouldn't discourage you from trying these same growth experiments for your business.

Axure: Targeted marketing for quality B2B leads

Axure, a software company specializing in prototyping tools, needed to attract more high-quality B2B leads while reducing their marketing costs. Their broad keyword strategy was not yielding effective conversions, and they faced intense competition.

What did they do?

Axure refined their marketing efforts to focus on high-converting keywords and specific geographic markets. They allocated their budget towards these high-quality traffic sources and emphasized branded search terms.

How did they do it?

• Keyword optimization: Focused on long-tail and branded keywords that were more likely to convert.
• Geographic targeting: Prioritized countries with the highest potential for quality leads.
• Ad spend management: Reallocated budget from underperforming areas to high-performing segments.
• Landing page enhancements: Optimized landing pages to improve user experience and conversion rates.

What did they achieve?

The targeted strategy resulted in a 32.04% click-through rate (CTR) and a 15.61% reduction in conversion costs. Axure generated 1,113 leads from branded search alone, and their Google Ad spending decreased by 60%, maintaining a $10 cost per lead (CPL).

These detailed case studies illustrate practical strategies that can be replicated to enhance lead conversion rates effectively. By focusing on tailored content marketing and leveraging referral programs, companies can attract and convert more leads.

Your next step? You know exactly what to do.

To wrap things up, we’ve explored various strategies to understand why leads might not be converting and how to improve those conversion rates.

From targeting the right audience and optimizing follow-ups to enhancing your website’s usability and personalizing communication, these tactics are designed to boost your success.

Now you know exactly what steps to take. Depending on how large or small your team is, you may not push all the way every initiative on this list. This is a game of consistency — keep testing, improving, and measuring constantly.

And for those looking to streamline their sales process, we highly recommend trying Propoze (hey, that's us!)

It makes creating and managing sales proposals effortless, helping you close deals faster and more efficiently. Give it a spin and see the difference it can make!