How do you ensure that sales reps are ready for each and every buyer interaction?
This blog post was originally published by Rekener, now a Brainshark company.
Cohort-based lead conversion rate measures the percentage of your leads that end up converting to opportunities, of the leads created in a certain period.
To calculate lead conversion rate, you take the number of leads created in a period, and divide that into the number of those same leads that were converted to opps.
For example, if you had 100 leads that were created in March, and of those 100 leads, 12 converted to opportunities, then your cohort-based lead conversion rate would be 12 / 100 = 12%.
When calculating cohort-based lead conversion rate, you need to make sure that you wait long enough after a period has passed before drawing any conclusions. You should look at your lead conversion cycle to understand how long it takes, on average, for leads to convert, and wait at least that long before measuring a cohort-based lead conversion rate.
To measure cohort-based lead conversion rate with Salesforce data, you need to run a report of leads created in the period you want to measure. Count how many leads that is. Then, filter those leads to just the ones converted to opps. Count the number of opps. Then divide the leads converted to opps by the leads created.
To measure lead conversion rate with HubSpot CRM data, you need to run a report of contacts created in the period you want to measure. Count the number of contacts. Then, filter those down to just the contacts with associated opps. Then divide the contacts with associated opps by the contacts created.
Sales scorecards can automate lead conversion rate calculations, and can break conversion rates down by lead source, campaign, sales rep, or any other dimension. Check out how our scorecards solution gives companies better visibility into how their reps convert leads into demos, opps and business.
Looking for more sales metrics know-how? Our comprehensive Sales Metrics Glossary will show you how to calculate 30 critical KPIs using CRM data.