How is lead generation different from conversion?
Inna Sabada
by Inna Sabada
How is lead generation different from conversion?

Every business is about sales. But what if they do not grow or fall? Usually, the problem is looked for in the sales and marketing departments, but everything is not so simple. Sales blame marketing for poor quality leads, and marketing blames sales for failing to convert a lead into a purchase.


What is lead generation read in our article - What is lead generation?


Conversion is the percentage of users that have moved from one state to another, for example, from site visitors to leads, from leads to buyers. If 50 out of 500 leads bought your product, then your conversion is 50/500 * 100% = 10%.


CR (Conversion Rate) = Action Takers/All Users * 100%.


CR = Leads/Buyers * 100%.


It turns out that the lead is a component of the conversion.


The cost is also considered differently.


CPL (Cost per lead) = advertising cost/number of leads.


CPO (Cost per order) = advertising cost / number of orders.


Conversion will always be more expensive than lead generation.


What affects leads?


In an ideal world, the marketing department would attract targeted leads and the sales department would lead them to purchase. But nothing works without fail.


Leads may be of poor quality. That is, the sales department contacts a potential buyer, but it turns out that he is not interested in buying at all, does not remember how he left the number, lives in another city/country and is not interested in services at all.


What affects conversion?


Not all leads become buyers. The following factors can influence CR:


- Leads are lost. If the processes in the company are not automated, contacts are transferred from marketing to sales on a paper sticker, then someone will be forgotten about.


- Long and/or poor-quality processing of applications. It is better to contact the lead as early as possible, while you are remembered. If requests are not automatically distributed among managers, then managers will start arguing, or different people will call the client several times in a row. The buyer will leave.