The hidden cost of lost leads

As a B2B lead generation agency, we know our stuff when it comes to squeezing the most value out of every business lead.

Every lead is an opportunity; every lost lead is potential revenue wasted. Despite the time, energy and capital that goes into a comprehensive marketing strategy, many businesses are still losing money through inefficient lead conversion.

But which sectors are wasting the most money on dead-end leads? We’ve crunched the numbers on cost per lead and average conversion rates for various industries to find the sectors spending the most on lost leads.

The UK sectors with the highest average cost per lead (CPL)

Finance, legal, and software firms are the B2B sectors with the highest CPL

We analysed a blend of paid and organic leads to find the industries paying the most for leads. As the name suggests, paid leads come from channels like digital ads, while organic leads are generated from free strategies like search engine optimization (SEO). Below, we comment on some of the top-ranking B2B sectors.

Financial Services

In Financial Services, every lead comes at a premium. Between 2022 and 2024, the average cost per lead hit £504.94 ($653) – one of the highest across all business sectors. But in an industry built on trust and expertise, cutting corners on lead generation simply isn’t an option.

According to our research, B2B email marketing remains the top lead generation channel, with three-quarters (73%) of buyers preferring it. However, 75% of B2B vendors say results are better when multiple prospecting channels are combined.

Therefore, it’s crucial that businesses incorporate other channels into their lead generation strategy. Redistributing some email marketing spend and increasing touchpoints with high-value prospects could help firms in this sector focus on quality over quantity and decrease their CPL

Legal Services

The Legal Services sector also ranks high for CPL, at £501.85 ($649) – the third highest cost compared to other industries. The work of firms in this sector has huge potential ramifications on the finances and stability of clients.

Therefore, marketing and lead generation efforts for Legal Services businesses must establish the company’s credibility and build trust with prospects. Sharing successful case studies can help achieve this and keep leads warm, ultimately leading to more conversions and a reduced CPL.

Software Development

In the software development industry, lead generation isn’t just about moving prospects through a sales funnel – it’s also about gaining concrete customer insights to improve product and service offerings. Between 2022 and 2024, the sector averaged £457.00 ($591) per lead – ranking as the 5th highest spend.

Software development firms often have a long sales cycle, typically involving product demonstrations and trials, bumping up the cost per lead. Businesses in this industry can work towards reducing this by building databases for targeted marketing campaigns using lead generation statistics and learnings taken from interactions with prospects.

The Legal Services sector performs best in lead conversions

Legal Services

Between 2022 and 2024, more than three in every 50 (7.4%) leads in the legal sector were converted on average. In such a competitive industry, firms with faster follow-ups and higher engagement rates can gain an edge over their rivals.

Improving onsite conversion rates is also key in such a competitive sector. Legal Services businesses can improve this with clear calls to action on their relevant website pages, giving them a higher chance of turning leads into opportunities.

Staffing and Recruiting

In an industry whose entire revenue rests on conversions, B2B lead generation for staffing and recruitment ranks third. Between 2022 and 2024, the industry saw just under three converted leads for every 100 (2.90%).

Tactics like paid advertising can help bolster conversion rates – a tool used by many recruiters. Platforms like Google Ads help agencies connect with businesses scouting for staffing solutions, turning intent into leads, and more successful leads mean quicker placements and happier clients.

Businesses waste up to £73,808 per 100 leads on lost leads

To see which industries are falling flat with their lead generation spend, we ran the numbers, multiplying each industry’s cost per lead by their conversion rate to pinpoint which industries are wasting money on leads that don’t convert.

Financial Services

Between 2022 and 2024, the financial services industry paid out an average of £50,493.89 ($65,300) for 100 leads. But with a conversion rate of just under one in fifty (1.90%) they effectively lost £49,534.51 ($64,059).

Offering leads tailored content could cut down on this waste in Financial Services lead generation. By offering immediate value that speaks directly to client needs, firms in the sector could attract leads far more likely to convert.

Legal Services

While the Legal Services sector boasts the highest conversion rate (7.40%), a lot of revenue invested in lead generation is still going to waste. Between 2022 and 2024, the industry spent £50,184.59 ($64,900) on every 100 leads, with £46,470.93 ($60,097) wasted.

Businesses in the sector can significantly reduce this loss by qualifying leads from the get-go. Intake forms or chatbots can be used to quickly identify leads more likely to convert, resulting in less wasted revenue on lost leads.

Software Development

The software development sector ranks 5th compared to other industries for revenue wasted on lost leads. Between 2022 and 2024, businesses in the sector lost an average of £45,196.98 ($58,450) per 100 leads. With its conversion rate, this means that only £502.70 ($650) was spent per 100 leads on leads that actually converted.

To improve conversions and reduce wasted revenue, firms in this sector could invite prospects to webinars that address their pain points. This would allow them to showcase expertise, build trust, and keep leads warm.

B2B SaaS

While firms in the B2B Saas (software-as-a-service) sector waste much less revenue on lost leads than most other industries – ranking 18th – significant money is still going to waste. Data from 2022 to 2024 shows they spent £18,124.68 ($23,439) on 100 leads.

With an underwhelming conversion rate of 1.1%, just £201 ($261) went to successful leads, so more than £18,000 ($23,439) was wasted. B2B SaaS businesses could leverage social selling to build real connections with prospects, turning lukewarm leads into conversions.

Steve Harlow, Chief Sales Officer at Sopro, offers his tips on maximising your lead generation efforts and ROI:

1. Nail your ideal customer profile

   • Define your audience – Dig into the demographics of your current customers. Spot the patterns in shared industries, goals and challenges.
   • Research your market – Get the lowdown on your competitors, market trends, and what your customers actually need.
   • Tailor your outreach – Build messaging that hooks your target audience, tackling their pain points and identifying what makes you stand out.

2. Serve up personalised high-value content

   • Email sequences – Follow up with tailored emails that click with each lead’s interests and history with your business.
   • Social media engagement – Dive into social media interactions to gauge the mood and keep your finger on the pulse of what content resonates with your audience.
   • Use multiple channels – Mix up your channels to build touchpoints and keep prospects close.

3. Track lead data

   • Profile your leads – Compare leads to your ideal customer profile. Consider their industry, revenue, location and whether they call the shots.
   • Analyse behavioural data – Spot buying signals through interactions with your website, so you can know when they’re ready to bite.
   • Score and rank prospects – Track clicks like website visits and email opens. Score these metrics to focus your lead nurturing efforts. For more tips on this, visit our lead scoring guide.

4. Leverage automated marketing

   • Use CRM tools – Keep tabs on stages and conversion rates based on set parameters such as engagement levels and drop-off rates.
   • Automate lead nurturing – Use outbound automation to send prospects personalised outreach to the right people at the right time.
   • Leverage AI – Chatbots and dynamic content can tweak your messaging to buyer journey stages, industries, or job roles.

Methodology

The average blended cost per lead by industry in 2025 was taken from FirstPageSage based on data collected between January 2022 and December 2024.

The average B2B conversion rate by industry in 2025 was also taken from FirstPageSage, based on data collected between January 2018 and December 2024.

To find each industry’s average spend per 100 lost leads, we first multiplied the average cost per lead by 100. We then multiplied this number by the average conversion rate to find the average cost per 100 converted leads. We then subtracted the average spend on 100 converted leads from the average spend on leads to find the average spend on lost leads.

We repeated this process for 500 and 100 leads.

Currencies were converted on 27/03/2025 using XE.