Sales Conversion Rate
Percentage of leads or prospects that convert into paying customers
What is Sales Conversion Rate?
Sales conversion rate is the percentage of leads that become customers. It shows how effectively a business turns interest into sales.
Because it covers the whole journey from lead to customer, it is a broad indicator of the health of the sales process.
How this KPI is measured
- Function
- Sales
- Sub-function
- Pipeline Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- %
- Measurement frequency
- Weekly / Monthly
- Formula
- (Number of conversions / Number of leads) × 100
How to calculate it
Divide the number of conversions by the number of leads, and multiply by 100.
For example, if a business had 2,000 leads in a quarter and 160 became customers, the rate is 8%.
Follow leads by cohort through to outcome, since leads from a period may convert later, and split by source.
Where it is used
Judging overall effectiveness
Track lead-to-customer performance.
Comparing lead sources
See which convert best.
Forecasting customers
Estimate wins from lead volume.
How to improve it
Tips and common mistakes
- Allow time for leads to convert.
- Do not compare across very different sales cycles.
- Track quality of customers as well as volume.
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