Formula
Sales Conversion Rate = (Number of Conversions ÷ Total Leads) × 100
Calculation Example
If 200 leads result in 40 sales, Conversion Rate = (40 ÷ 200) × 100 = 20%
Data Source
CRM software, sales reports
Tracking Frequency
Weekly, Monthly, Quarterly
Optimal Value
A higher conversion rate indicates better sales efficiency.
Minimum Acceptable Value
A low conversion rate suggests poor lead quality or ineffective sales strategy.
Benchmark
B2B ~10-20%, E-commerce ~1-3%
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare sales teams)
How It Appears in Reports
Displayed in sales reports to evaluate sales efficiency.
Why Is This KPI Important?
Helps businesses optimize marketing and sales strategies for better ROI.
Typical Problems and Limitations
Can be influenced by seasonality and external factors like competition.
Actions for Poor Results
Improve lead qualification, enhance sales training, optimize pricing strategies.
Related KPIs
Lead-to-Customer Ratio, Win Rate, Customer Acquisition Cost (CAC)
Real-Life Examples
A SaaS company increased conversion rate from 8% to 15% by implementing a free trial model.
Most Common Mistakes
Focusing only on conversion rate without considering customer lifetime value.
