Understanding what conversion rates to expect from your leads is crucial for any Australian small to medium enterprise. It’s easy to get caught up chasing volume, but a high number of leads doesn’t automatically translate to business success. We often see businesses frustrated because their lead generation efforts aren’t delivering the return they anticipated. The truth is, ‘good’ conversion rates vary significantly depending on your industry, lead quality, and sales process. However, we can provide some realistic benchmarks to guide your expectations.
Generally, we categorise leads into three stages: Marketing Qualified Leads (MQLs), Sales Accepted Leads (SALs), and Sales Qualified Leads (SQLs). Conversion rates drop as you move down this funnel. Expect around 5-10% of website visitors to become MQLs – people who’ve shown enough interest to warrant a follow-up. Of those MQLs, roughly 20-30% will become SALs, meaning your sales team agrees they’re worth pursuing. This is where things get tougher.
- SQL Conversion: The conversion rate from SAL to SQL (a lead actively considering a purchase) typically sits between 10-20%. This highlights the importance of effective sales follow-up and qualification.
- Opportunity Creation: From SQLs, around 25-30% will progress to become genuine sales opportunities – a qualified prospect with a defined need and budget.
- Close Rate: Finally, your close rate – the percentage of opportunities that turn into paying customers – should ideally be between 20-40%. This is heavily influenced by your sales skills, pricing, and the strength of your value proposition.
It’s important to remember these are averages. Businesses with highly targeted lead generation, a strong brand reputation, and a streamlined sales process will consistently outperform these numbers. Conversely, those relying on broad, untargeted campaigns will likely see lower conversion rates. Analysing your own data is paramount. Track your conversion rates at each stage of the funnel and identify bottlenecks. Are you losing leads between MQL and SAL? Perhaps your marketing and sales teams aren’t aligned on lead qualification criteria.
Don’t simply aim for higher numbers; focus on improving the *quality* of your leads. A smaller number of highly qualified leads will almost always deliver a better return than a large volume of unqualified prospects. If you’re consistently below these benchmarks, we recommend a thorough review of your lead generation strategy and sales process. A small investment in optimisation now can yield significant improvements in revenue throughout 2026 and beyond.
