Lead-to-Opportunity Conversion Rate
What is the Lead-to-Opportunity Conversion Rate metric?
The Lead-to-Opportunity Conversion Rate metric quantifies the efficiency of converting new leads into sales opportunities within a defined time frame. It's expressed as a percentage, illustrating the portion of leads that have moved beyond initial interest to enter the sales pipeline.
Why is this metric important to measure?
Measuring the Lead-to-Opportunity Conversion Rate offers a clear picture of how effectively marketing and sales efforts are working together to create viable sales opportunities. It helps identify areas for improvement in the conversion process, enables better strategic planning, and aligns teams towards common goals. A high conversion rate reflects a successful alignment of marketing strategies with sales opportunities.
How is this metric calculated?
The Lead-to-Opportunity Conversion Rate is calculated by dividing the number of new leads that have converted into sales opportunities by the total number of new leads created during the specified time period. For example, if 100 leads were created in March and 10 were converted to opportunities, the Lead-to-Opportunity Conversion Rate in March would equal 10%. This metric relies on the defined lead object, a created date field and a field indicating when the lead was sales accepted.