For a lead-generation website, the percentage of leads that are converted and make a purchase is the

Date created: May 26, 2019  •   Last updated: Feb 25, 2022

What is Lead Conversion Rate?

The Lead Conversion Rate is the percentage of visitors who come to your website and are captured as leads. This is one of the most important top-of-the-funnel conversion metrics. It’s an indicator of your ability to attract the right target audience and the efficiency at which your website is turns them into leads.

Alternate names: Visitor to Lead Ratio, Page Conversion Rate, Click to Lead Rate

Lead Conversion Rate Formula

ƒ Count(Leads) / Count(Visitors)

How to calculate Lead Conversion Rate

Let's say your website generates an average of 50,000 visitors each month. Of those, you capture a total of 2,000 leads. Lead Conversion Rate = 2,000 leads / 50,000 visitors = 4%

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What is a good Lead Conversion Rate benchmark?

Lead conversion rates vary by industry and device type, but a good lead conversion rate is about 2.4% globally for the average webpage. A lead gen landing page can have a lead conversion rate of around 4%.

Lead Conversion Rate benchmarks

How to visualize Lead Conversion Rate?

When tracking your Lead Conversion Rate, it's best to view changes in your conversion rates over time with a line chart. You can also use a bar chart to segment your conversion rate data by lead source or advertising channel. Take a look at the sample charts for an idea of how to visualize your Lead Conversion Rate data.

Lead Conversion Rate visualization examples

Bar Chart

Here's an example of how to visualize your Lead Conversion Rate data in a bar chart to observe segmented data..

More about Lead Conversion Rate

There are a variety of visitors coming to your website. Some might be following a link while researching a topic, others may have clicked on a targeted ad. Some are highly knowledgeable and ready to start a trial or download a PDF. Every customer type is valuable. Your site needs to guide all of them toward the right path.

Because you have many types of visitors at various stages of the buying cycle, you should have multiple lead-capture paths. For the user who is merely doing research, you can ask them to sign up for an educational newsletter. For the user who has returned to the website five times and is ready to take the plunge, you should put them on a fast-track path, by scheduling a call or starting a trial account.

Visitor to lead conversion rate is an important conversion metric that captures how effectively your website captures leads, regardless of the intent of the visit.

Segmentation of this metric is extremely important. For each group (cold, warm, and hot) you want to track the efficiency of your website to turn them into leads.

Website to Lead Conversion Rate is also critical to understanding paid advertising spend and determining ROI. Similarly, you may be using re-marketing campaigns to increase your Lead Conversion Rate and need to keep an eye on spend vs value.

Remember, it's not only content that entices your target user. Site performance has also been shown to impact website conversion rates. Almost 50% of users expect sites to load in less than 2 seconds. Consider that sites taking twice the time to load see conversion rate drop by 3X. Walmart discovered that, for every second of improvement in load time, conversions increased by 2%.

Keep in mind that quality is always paramount. It's easy to increase the number of leads your site generates, but it’s more important that you increase the number of quality leads that actually turn into won business.

Lead Conversion Rate Frequently Asked Questions

What is the average conversion rate for lead generation?

The average Lead Conversion Rate for lead-gen webpages is usually around 4%. For context, the average webpage has a Lead Conversion Rate of around 2%.

Recommended resources related to Lead Conversion Rate

An in-depth study of lead conversion rates with a paid advertising focus.Cloudflare has found that page load time noticeably impacts conversion rate.

It is every company’s goal to get a good conversion on their leads, which is why many employ metrics to monitor the effectiveness of their lead generation strategies.

But are your companies’ numbers standing up to industry standards? Can your sales still stay ahead of your lead generation expenses?

The important thing to monitor is if your lead conversions are keeping up with industry standards. Juxtaposing your results to that of the industry can tell you whether or not your teams and strategies are working.

If you want to improve your conversion rates, you need to implement the right sales funnel optimization strategy to get the results you want. This means taking a closer look at your current process and making improvements based on what you see behind the scenes.

From the top of the funnel where visitors get converted into leads, all the way down to acquisition, there’s always something you can tweak to make the most of your lead generation efforts. Effective optimization results in above average conversion rates and sustainable revenue.

Your lead generation plan should include sharing content that’s compelling enough to encourage your target audience to become qualified leads. You know you’ve successfully acquired a lead when they download your e-book, become subscribers, or fill out an inquiry form.

However, the funnel doesn’t end with a lead acquisition. You need to continue nurturing the relationship to turn them into loyal customers. Whether it’s by sending them relevant content, the latest industry news, or updates that reinforce their decision to buy your product or service, don’t neglect the importance of keeping in touch with current clients.

Quick Takeaways:

• The key to conversions is to acquire qualified leads and keep nudging them down your sales funnel.
• Know the benchmarks in your industry so you can compare yourself fairly to the competition. However, always be on the lookout for tactics that might help you surge ahead.
• If your numbers fall below your industry standard, you need to get a clear picture on where your company is struggling and focus on implementing new strategies for success.

The Importance of Measuring Success

Conversion rates tell you how quickly your leads turn into clients, and that is essential for business growth. High conversion rates mean that for every dollar you spend to get a lead, you receive more profits for turning the lead into a paying customer. Knowing whether you have a high or low conversion rate speaks volumes about how successful your marketing and sales efforts are.

More often than not, lead conversion is defined as being accomplished when the lead becomes a paying customer. But conversion in itself can mean any of these other customer behaviors: becoming a newsletter subscriber, downloading your white paper offer, signing up for an online seminar, sharing content on social media, or a specific length of time spent on your homepage.

High conversion rates mean more sales for your business. The more sales, the more leads will likely move quicker down the sales funnel. A high conversion rate also points to successful alignment between the sales and marketing teams.

There are a number of reasons why your conversion rates may be low and avoiding any of them will lead to poor ROI and low profitability. The reasons for low conversion could be any of the following:

1. Landing pages are not UX friendly – UX is a big factor to your customers as complicated and bulky experiences can stop them in the middle of the buying process.
2. Your offer is not comparable to the competition – Comparisons may vary from price to quality of offerings. Check your offering against the competition and see where you might be lacking.
3. Your sales process is too complex – Can customers easily understand how to buy from you, or do they have to go through many steps and move back and forth?
4. Prospects don’t have strong intent – Were you able to target the right audience? Leading the wrong people to your landing page will result in a high bounce rate.

How to Compute Lead Conversion Rates

Conversion rates, is the process of reaching out to the right target audience, presenting them with the right solution and getting them to take the action you want them to take. These could range from subscribing to buying from your website.

Computing for your conversion rate is easy. Once you’ve clearly defined what a conversion is, you now know what to measure and how to compute your lead conversion rate. Conversion rates are equal to the total number of conversions divided by the number of leads and then multiplied by 100.

If your conversion is defined as leads who become new customers, then the formula should look like this:

Lead Conversion Rate = Total No. of New Customers / Number of Leads * 100

So, if you had 100 leads, and 20 of them became new customers, your lead conversion rate is 20%. If there is more than one conversion action that you’re tracking, the results can go over 100% due to each interaction can have multiple conversions.

Average Conversion Rate Per Industry

The standard conversion rate varies across industries. With industries having various targets and conversations, no single standard can be used. These could range from different products, sources, information, etc.

In most cases, you should also expect traffic coming from the top of the funnel to be a lot higher than those further down the funnel to become Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL).

Visitors that become MQLs and SQLs provide larger opportunities they have been identified as leads who have engaged with you and are interested in your product or service. On average, SQL conversion rates are higher than MQL conversion rates; the SQL is in the buying cycle while MQLs are not ready for the buying stage just yet.

Different industries have different conversion rates. A Marketing Sherpa study revealed that website conversion rates of traffic that come from the top of the funnel across various industries typically fall within these ranges as well:

Average landing page conversion rate should be 20-25% according to HubSpot. And average PPC Pay-per-click campaign average conversion rate is 2.35% according to WordStream.

Improving Your Lead Conversion Rates

Despite the need to keep up with industry standards or continue to soar above competitors you can increase your conversion rates. The first step is knowing where you stand by computing your conversion rates and contrasting them to the industry standard. Once you know where you stand, it’s time to find out how you can improve. Here are a few simple tips to improve your company’s conversions:

1. Identify conversion goals – What do you want to achieve and are you nurturing your customers to do what you want them to do?
2. Optimize your site – Build your site so it is user friendly. Allow for a simple customer experience in which prospects can navigate to the information they want efficiently and quickly.
3. A/B test your landing pages and ads – Perhaps you think that your landing page is the best because that is what seems right to you. But does the same translate to your audience? Often, your target audience sees things differently, which is why A/B testing is your friend.

When you have identified where you need to improve, it then becomes your job to implement these new features. However, this is not a one-time process. These are continuous improvements that your company should be implementing especially as technology and the industry changes.

Getting good conversion rates should be a top priority as it is a good measurement of your company’s health. It is very important that you know your conversion rate so you know where you stand against your competitors and or risk of losing important clients.

Marketing has a never-ending problem: you are required to generate a lot of leads with ever-increasing goals to generate more than you have in the past. One of the many challenges this creates is that you likely end up sacrificing quality for quantity to the detriment of your lead and demand generation program ROI.

Do you need help creating content to capture potential leads? Check out our Content Builder Services or schedule a free consultation today!

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