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 rate at which your website is turns them into leads.
How to calculate Lead Conversion Rate
ƒ Count(Leads) / Count(Visitors)
What is a good Lead Conversion Rate benchmark
The global average landing page conversion rate is 2.4%, with the top 25% converting at 5.3% and the top 10% at 11.5%.
Let's say your website generates an average of 50,000 visitors each month. Of those, you capture a total of 400 leads.
Lead Conversion Rate = 400 leads / 50,000 visitors = 4%
More about this metric
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.
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.
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