We have created a calculator that makes it easy to work out your lead conversion rate (LCR):
What is a lead conversion rate?
Similar to the conversion rates calculator, a lead conversion rate is refined to a specific desired action which you are monitoring – leads. An example could be when a customer on a free trial, decides to purchase the paid plan.
By entering your details below, the calculator will work out what your lead conversion rate is:
Why are lead conversion rates important?
In every business there is a marketing team, trying to push sales, convert leads and help grow the business. The lead conversion metric helps you understand how well they’re performing. It helps you evaluate how your lead generation tactics are converting, and the effectiveness of your sales funnel.
For many businesses, this metric is a key performance indicator (KPI) for their marketing teams.
A low lead conversion rate would mean that somewhere along your sales funnel there is a weak link. This could be your copy for your products landing page, or perhaps poor placement is ‘buy’ buttons.
Monitoring your lead conversion rate will allow you to effectively update and improve your copy, sales funnel, advertisements and website for your target audience, which as a result will boost the success of your leads converting.
How to calculate your lead conversion rate
To calculate your lead conversion rate, you’ll need two figures – leads converted (from a specific action e.g. free trial to paid plan) and the total leads (e.g. all those who took part in the free trial).
For example, let’s use the free trial to paid plan for our calculation. In August we had 250 people sign up to a free trial of a product, out of the 250 people 18 then went on the upgrade to a paid plan. Therefore, we take the leads converted and divide it by the total leads, and lastly multiple by 100 for our percentage.
We have 18 people who converted to a paid plan, divided by 250 who signed up for the free plan which gives us 0.072, lastly, multiple by 100 and we get 7.2%. Our example scenario has a lead conversion rate of 7.2%.
(18 / 250) * 100 = 7.2% lead conversion rate
(Leads converted / total leads) * 100 = % lead conversion rate
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