Conversion rate (in sales)
Quick answer
Conversion rate is the percentage of leads or opportunities that move to the next stage or buy, out of all those that entered that stage.
Key takeaways
- Lead to opportunity (source quality)
- Opportunity to quote and quote to order
- Visit to order, for field agents
- Visitor to enquiry, on the website
What conversion rate is
Conversion rate shows how many of those entering a stage of the sales process reach the next one. It can be measured across the whole chain (lead to customer) or between stages (quote to order). Without a clear numerator and denominator, figures cannot be compared.
The formula
Conversion rate = (number of conversions / number of entries) × 100. Example: 18 orders from 120 quotes sent is 18 / 120 × 100 = 15%. Overall conversion is the product of stage conversions: 50% × 40% × 30% = 6%.
Where it is measured
- Lead to opportunity (source quality)
- Opportunity to quote and quote to order
- Visit to order, for field agents
- Visitor to enquiry, on the website
Common mistakes
1. Wrong denominator. Dividing this month's orders by this month's leads when the sales cycle takes three months; compare cohorts, not calendar months.
2. One average for everyone. An average hides differences between sources, agents and products.
3. Confusing it with win rate. Win rate is calculated only on closed opportunities, not on all that entered.
How it shows up in a CRM
A CRM calculates conversion by pipeline stage and splits it by source and by agent. In CRMconnect, the Sales Agent Management module shows conversions and pipeline value per agent in one dashboard, and Lead Management tracks leads through to customer conversion.
Real-world example
A distributor gets 200 website enquiries and 60 referrals. The website yields 10 customers (5%), referrals 12 (20%). Conclusion: referrals convert four times better, so a referral programme is worth considering.
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Frequently asked
How is conversion rate calculated?+
Divide conversions by the number of entries into the measured stage and multiply by 100. If 120 quotes produce 18 orders, the conversion rate is 15%.
What is a good conversion rate?+
There is no universal threshold: it depends on industry, source and order value. Compare against your own history, for the same stage and the same source.
What is the difference between conversion rate and win rate?+
Conversion rate can measure any move between stages. Win rate measures only closed-won opportunities against all closed ones.
How can conversion rate be improved?+
Find the stage with the biggest drop, answer leads faster, qualify more strictly and record loss reasons. Then test one change at a time.
Where CRMconnect fits
Where CRMconnect helps
CRMconnect tracks several sales processes in parallel, each with its own stages, rules and indicators, in the same dashboard.
Related terms
Win rate
The share of closed opportunities that were won - the main indicator of sales process and qualification quality.
SalesLead
A lead is a person or company that has shown interest in your offer and may become a customer, but has not bought yet and has not been qualified.
SalesSales pipeline
A structured view of open opportunities grouped by stage, used to estimate future revenue and prioritise commercial effort.
SalesSales cycle
The average time from first qualified interaction to a signed order - the metric that determines how fast commercial effort turns into cash.