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 see many businesses struggle because they haven’t set realistic expectations, or haven’t optimised their processes to nurture leads effectively.
So, what *are* realistic numbers? It varies significantly based on industry, lead quality, and sales process, but here’s a breakdown to guide you. We’ll focus on moving leads through the funnel – from initial contact to qualified lead, and then to a paying customer.
- Lead to Marketing Qualified Lead (MQL): Expect around 5-10%. An MQL is someone who’s shown genuine interest – downloaded a resource, attended a webinar, or actively engaged with your content. This rate highlights the importance of attracting the *right* leads, not just any lead.
- MQL to Sales Qualified Lead (SQL): This is where marketing hands over to sales. A realistic conversion here is 20-30%. This means sales actively engages with the MQL and determines they’re a good fit for your offering.
- SQL to Customer: This is the big one. A healthy conversion rate here is 10-20%. This demonstrates your sales team’s ability to close deals. Lower rates suggest issues with your sales process, pricing, or product-market fit.
These aren’t hard and fast rules, of course. Businesses with highly targeted lead generation campaigns, and a well-defined sales process, can achieve higher rates. For example, professional services often see higher SQL to customer conversions due to the higher value and considered purchase decision. Conversely, businesses relying on broad advertising may see lower MQL rates.
It’s also important to continually analyse your conversion rates at each stage. Look for bottlenecks – where are leads dropping off? A/B testing different approaches to lead nurturing and sales follow-up can significantly improve these numbers. Don’t be afraid to experiment and refine your strategy. Focusing on improving even a small percentage at each stage can have a substantial impact on your overall revenue in 2026 and beyond.
To get started, we recommend auditing your current lead generation and sales processes. Identify where you’re losing leads and develop a plan to address those weaknesses. A clear understanding of your current performance is the first step towards achieving sustainable growth.
