What is a conversion rate, and how is it calculated?

Conversion rate measures how many people move on to the next step. The definition must remain consistent over time; otherwise, you are measuring the change in the definition.

Measure per transition

Lead to opportunity. Opportunity to proposal. Proposal to closed-won. A single overall figure from top to bottom obscures where the problem lies.

Define the denominator

Do you count all leads, or only those that were followed up? Both are valid, but they produce very different figures. Write down which one you use.

Look at the trend, not the level

What constitutes a good conversion rate varies enormously across industries and channels. Your own figure from the previous quarter is the only meaningful comparison.