Formula
Lead-to-Customer Ratio = (Number of Customers Acquired ÷ Total Leads) × 100
Calculation Example
If a company gets 1,000 leads and converts 100 into customers, Lead-to-Customer Ratio = (100 ÷ 1,000) × 100 = 10%
Data Source
CRM software, marketing analytics, sales reports
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
A higher ratio indicates efficient marketing and sales alignment.
Minimum Acceptable Value
A low ratio suggests poor lead quality or weak sales conversion.
Benchmark
Industry benchmarks: B2B ~5-15%, SaaS ~10-20%, E-commerce ~1-5%
Recommended Chart Type
Bar chart (to compare marketing channels), Line chart (to track trends)
How It Appears in Reports
Displayed in marketing and sales reports to evaluate lead quality.
Why Is This KPI Important?
Shows how effective marketing and sales efforts are in acquiring customers.
Typical Problems and Limitations
Does not account for customer retention; acquiring low-value customers may not be beneficial.
Actions for Poor Results
Improve lead qualification, enhance follow-up process, optimize sales funnel.
Related KPIs
Sales Conversion Rate, Win Rate, Customer Acquisition Cost (CAC)
Real-Life Examples
An e-commerce company improved lead-to-customer ratio from 2% to 5% by personalizing email marketing campaigns.
Most Common Mistakes
Focusing on lead volume instead of lead quality.
