Step 3 of 5 on the chain

Close rate

Also called Win rate, Conversion rate to customer.

The share of leads that became customers. Read on leads whose outcome is known: won divided by won plus lost, with leads still open left out.

Why it matters

It is half of what a lead is worth. A kind of lead that closes twice as often is worth about twice as much, before deal size is even counted, and the differences between kinds of lead are usually larger than anyone expects.

What goes wrong

Two mistakes distort it. Counting open leads as lost makes every recent group look worse, because its leads have not had time to close. And a file of won deals only gives every group a close rate of one hundred per cent, which prices nothing.

Small groups mislead. Five wins from ten leads reads as fifty per cent and could as easily be twenty or eighty, which is why a close rate is only as good as the number of decided leads behind it.

What this product does about it

A kind of lead is priced only when at least 25 decided leads stand behind it, and its figures are then weighed by how many there are.

How to check it on your own account

Count your won and lost leads from last year, by source or by the answer to one form question. Divide won by won plus lost for each.

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Where this comes up

In your trade

The industry pages that work this through for a kind of business.

The rest of this step

Measure this on your own data

The diagnostic reads a CRM export in your browser and reports your volume, your match rate and the spread between your leads against the thresholds in this glossary. Nothing is uploaded and no account is needed.

See what your own leads are worth

Read your closed deals and find out whether your lead values actually vary, and by how much. Nothing is stored, and your file is read in your browser.

Try it on a sample dataset