What is lead to opportunity conversion rate?
Lead to opportunity conversion rate is a sales metric that measures the percentage of leads that are converted into opportunity. It measures the percentage of qualified sales leads.
How to calculate lead to opportunity conversion rate?
To calculate the lead-to-opportunity conversion rate, divide the ‘number of leads converted into opportunity’ by the ‘total number of leads’. Now, multiply this number by 100 to get the percentage.
Formula for calculating lead to opportunity conversion rate
Real-life example of lead-to-opportunity conversion rate
Let’s assume, you run a SaaS business offering CRM tools for small businesses. You have a total of 500 leads in your pipeline right now. Out of those, 60 converted to being an opportunity.
So, your lead to opportunity conversion rate will be: 60/500 x 100 = 12%
What’s considered a good lead to opportunity conversion rate? (benchmark)
A good lead-to-opportunity conversion rate is considered between 12% - 13%. The lead-to-opportunity conversion rate varies depending on your industry, business type, marketing strategies you’re using, etc.
A Salesforce report shows the average lead-to-opportunity conversion rate across different industries is 13%. The more your leads are converting to opportunities, the more customers you’ll close and ultimately you’ll achieve a high revenue.
Ways to increase your lead to opportunity conversion rate
- Focus on website CRO: Pay attention to your website’s pages and navigations. Make it easier for prospects to show interest in your company (book a demo, fill out a form, email, etc.). Partnering with a CRO company can provide specialized expertise to optimize conversion rates effectively.
Read this Conversion Rate Optimization (CRO) for Lead Generation Websites - Filter your MQL list: You need to devise a method to rank your MQLs so that, your sales team can focus on the highest-quality opportunities. Read the ultimate guide on sales qualification
- Nurture your leads: When a potential customer has shown interest in your product/service, send them personalized and informative lead-nurturing emails until you’re sure to take them to the opportunity stage. Check out: Lead Nurturing Email Examples You'll Want to Steal