Conversion Rate is a concept widely used by SaaS companies and refers to the percentage of customers you get out of the total number of leads in a specific period. It is calculated as follows:
In a period of three months, you managed to capture 100 leads of which only 25 became customers (bought or "consumed" your product), by replacing the data the formula would look like this:
that would give us a conversion rate of 25% in three months.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.