LeadtoCustomerRate

LeadtoCustomerRate, often written as Lead-to-Customer Rate, is a metric that expresses the share of leads that become paying customers during a specified period. It is used to assess the efficiency of a company’s sales and marketing funnel.

Calculation: LCR = (Number of customers acquired during period / Number of leads generated in period) × 100. Example: 150 leads generated, 15 new customers; LCR = 10%.

Uses: Helps evaluate funnel effectiveness, channel performance, and ROI; can be analyzed by channel, campaign, product, or sales rep; used in forecasting and budgeting. Limitations: depends on the definition of a lead, the attribution window used, and whether a customer is counted immediately or only after an agreed post-attribution window; cross-channel attribution complexities can obscure true performance.

Improvement and related metrics: Align marketing and sales, implement lead scoring and nurturing, set clear qualification criteria, and maintain CRM hygiene. Use consistent lead definitions and an appropriate attribution window. LCR is related to, but distinct from, lead conversion rate, opportunity-to-close rate, and customer acquisition cost.