Lead-to-customer Rate

Definition

Lead-to-customer rate is the % of leads that become paying customers over a defined time window. It is a key bridge from CPL to CAC.

Formula

Lead-to-customer rate = customers / leads

Example

If 200 leads produce 24 customers in 90 days, lead-to-customer rate is 12%.

How to use it

• Define the conversion window based on your typical sales cycle.
• Segment by channel and lead type to avoid blended averages.
• Use the rate to translate CPL into CAC (CAC = CPL / lead-to-customer rate).

Common mistakes

• Mixing marketing-qualified leads with all raw leads in the denominator.
• Using a window that is shorter than your sales cycle and undercounting wins.

Why this matters

This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.

Practical checklist

• Write a 1-line definition for "Lead-to-customer Rate" that your team will use consistently.
• Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
• Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
• Use a calculator that references this term (e.g., CPL to CAC Calculator) to sanity-check assumptions.
• Read the related guide (e.g., CPL to CAC: why lead gen metrics mislead (and how to fix it)) for context and common pitfalls.

Where to use this on MetricKit