Lead to customer (LTC) conversion rate

Definition

LTC conversion rate is a SaaS metric that allows companies to determine the number of users that are converting. It helps them understand the effectiveness of their marketing efforts.

Example

Lead-to-customer conversion rate can be calculated as total qualified leads converted to actual sales divided by total qualified leads for the period. LTC conversion rate = (Number of qualified leads converted to sales / total qualified leads)*100Suppose, a SaaS company got 50 qualified leads and 10 qualified leads from these resulted in actual sales (meaning, 10 qualified leads turned into subscribers). So, the company's LTC conversion rate will be (10/50)*100 = 20%

Why it matters

A low LTC could mean trouble for a company. It indicates that the company's marketing efforts are unable to drive enough relevant user traffic. It can also be translated as ineffective sales strategies that may need reconsideration by the company.

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