How to Calculate Sales Leads to Close Ratio

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One of the most important tasks business owners and sales professionals need to do is to track results. Knowing which marketing methods generate the most sales can help you focus on the tasks that make money. One way to track your effectiveness is to calculate your sales leads to close ratio. This tracks how many leads, or prospects who may become customers, convert into closed sale deals by making a purchase.

Choose a period of time and gather the number of leads and the number of closed sales during that time frame. You can calculate the ratio for any time period (the year, a week, etc.), but for the most accurate results, choose a longer time period such as the last three months.

Divide the number of sales leads by the number of closed sales. For example, if you had 100 leads and closed 20 sales, you'd divide 100 by 20 to get 5. This tells you that, on average, for every 5 leads you're getting 1 sale; in other words, a closing ratio of 1 out of 5.

Turn your answer into a percentage. Most lead to sale ratios are described in percentages. Using the example above, divide 1 by 5 to get 0.20, or 20 percent (move the decimal two places to the right or multiply by 100 to get the percentage). In this case, you're closing 20 percent of the leads you received.


About the Author

Leslie Truex has been telecommuting and freelancing since 1994. She wrote the "The Work-At-Home Success Bible" and is a career/business and writing instructor at Piedmont Virginia Community College. Truex has a Bachelor of Arts in psychology from Willamette University and a Master of Social Work from California State University-Sacramento. She has been an Aerobics and Fitness Association of America certified fitness instructor since 2001.

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