What is Traffic-to-lead ratio?
The traffic-to-lead ratio of your site compares the total number of visitors your site receives with the number of visitors which convert to leads.
Traffic-to-lead ratio is also referred to as the Lead Conversion Rate.
How do you calculate Traffic To Lead ratio?
To calculate the traffic-to-lead ratio for a site, you must divide the total number of site visits by the number of leads generated over the same timeframe.
50,000 website visits in a month
500 leads in a month
50,000:500 = 100:1 / 500 divided by 50,000
Traffic-to-lead ratio is 100:1 / Conversion rate is 1%.
Why Is Traffic To Lead ratio important?
Traffic-to-lead ratio is the ultimate measure of whether your site is fulfilling its purpose. A site that is well-made and attracts a lot of traffic may appear to be a success. However, if it is not generating leads for your business then it is not fulfilling its purpose.
For instance: A business uses Search Engine Advertising to place ads for a landing page in search results, hoping to boost traffic to its site. The number of visitors to the site increases. However, none of this new traffic is translating into leads for the business. Judged in isolation the improved traffic would seem like a success but the real worth of the advertising will be reflected in a poor traffic-to-lead ratio.
Traffic before advertising: 1,000 hits per month
Leads before advertising: 100 leads per month
Traffic to lead ratio: 10:1 / Conversion rate is 10%
Traffic after advertising: 5,000 hits per month
Leads after advertising: 100 leads per month
Traffic to lead ratio is 50:1 / Conversion rate is 2%
The improved traffic results may seem impressive: 400%. However, using the Traffic-to-Lead ratio we can see the advertising has not helped generate new customers from the business. The traffic-to-lead ratio has dropped from 10:1 to 50:1.
What data sources do you need to measure Traffic-to-Lead Ratio?
For this, you need both web traffic stats from a source like Google Analytics and your number of qualified leads from the same period.
How to improve Traffic-to-Lead Ratio?
If your traffic-to-lead ratio is poor, it means to visitors are reaching your site but are not converting to leads, there could be several issues at play.
No clear conversion point
How Talon.One can help
By adopting a full-funnel approach to promotions, companies can pass users seamless from acquisition, through onboarding and onto loyalty and retention programs. This can help improve conversion at every stage of the funnel.
Make sure to read our case study on Favo, to learn how they grew their customer base by 21% using coupons.
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