Lead Conversion Rate

Definition of Lead Conversion Rate

The percentage of captured leads that result in a desired action, such as making a purchase or signing up for a service.

Explanation of Lead Conversion Rate

Lead Conversion Rate is a metric that measures the percentage of leads that successfully convert into paying customers or achieve a specific goal, such as making a purchase or signing up for a service. This rate is calculated by dividing the number of conversions by the total number of leads and multiplying by 100. Lead conversion rate is a key performance indicator (KPI) in marketing and sales, reflecting the effectiveness of a business’s lead generation and nurturing strategies. A higher conversion rate indicates that the business is successfully turning prospects into customers, while a lower rate may signal the need for optimization and improvement. Factors influencing lead conversion rate include the quality of leads, the relevance and persuasiveness of marketing messages, the user experience, and the effectiveness of follow-up and sales processes. By monitoring and analyzing lead conversion rates, businesses can identify areas for improvement, refine their strategies, and achieve better results.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.