The lead-to-customer conversion rate is a key indicator of how well a business converts qualified prospects into paying customers. The number is commonly utilized as a sales team's key performance indicator (KPI)
Many businesses determine the metric for every salesperson and the entire sales team.
Analysis of the sales conversion rate should consider historical data and data from other time frames (such as weekly, monthly, quarterly, and annual).
Most frequently, conversion rates are further divided (and should be) by campaign type, program, channel, area, and other factors.
Analyzing the development of your sales conversion rate using a well-defined sales funnel with pre-defined
stages is helpful.
This frequently takes the shape of lead lifecycle stages, in which leads transition through different stages, such as marketing accepted leads, marketing qualified leads, sales qualified leads, and so on.
No single conversion rate standard applies to all businesses. A conversion rate of 7%, for instance, may be negative for some businesses while being positive for others.
As a result, an analyst must consider the company's historical performance and industry averages when assessing lead-to-customer conversion rates.