Conversion Rate
Conversion Rate is the percentage of records at one stage of the sales process that successfully advance to the next stage, or ultimately close as won deals. It is one of the most diagnostic metrics in revenue operations. Stage-by-stage conversion rates reveal where a sales process breaks down: an 80% conversion from initial meeting to demo is healthy; a 20% conversion from demo to proposal suggests reps are advancing unqualified opportunities. Tracked over time in CRM, conversion rate trends signal changes in market conditions, competitive pressure, or internal process quality, giving sales leadership the data to intervene with coaching, process changes, or resource reallocation before revenue impact becomes severe.
Conversion rate is calculated by dividing the records that advanced to the next stage by those that entered the current one, over a period. Teams track it at every transition, from lead to MQL to SQL to closed won, because the value comes from comparing stages and trends rather than reading one number. A sharp drop at a single transition points to a specific, fixable problem you can isolate by rep, segment, or source.
Frequently Asked Questions
Divide the number of records that advanced to the next stage by the number that entered the current stage, then multiply by 100. For example, 15 of 50 proposals closing is a 30% rate.