Win rate is one of the most basic measures of your sales success, so it’s natural to want to compare your performance to the average to see how you stack up.
However, the answer to this question isn’t so simple. Before we dig deeper, we need to pinpoint what “sales win rate” actually means.
Here's how we define sales win rate: the percentage of proposed or quoted opportunities that the organization won.
This definition is important because it is based on opportunities that make it to the proposal stage, not all opportunities that enter your pipeline.
To provide a benchmark for win rate and other metrics, we surveyed 472 salespeople and sales executives representing companies with sales forces ranging in size from 10 salespeople to canadian biotechnology email list more than 5,000. Among other things, we wanted to know: What is the average sales win rate, and how do win rates vary based on overall performance?
Across all respondents, the average successful sales rate is 47%, the common factor being the use of a good, well-parameterized CRM.
Sales won rate
It is worth noting that although there were slight variations across industries and company sizes, their sales success rates were similar. Our findings are applicable to organizations of all sizes.
We divided the respondents into 3 groups according to their sales results:
Elite Performers (representing the top 7% of respondents),
Top Performers (representing the top 20%) and
The rest (which represents the remaining 80%).
When we look at the win rate of each performance group, the differences are surprisingly large.
Sales won rate
Elite and Top use a CRM
The Elite earn almost three-quarters of their opportunities. The rest earn only 40%, and this group represents 80% of all respondents.
This large gap in won sales rates between performance groups represents a huge opportunity for companies willing to invest in becoming Elite and Top Performers.
You might think that going from a 40% to a 62% won sales percentage doesn't sound like much. But simple math reveals just how big a difference even incremental improvements in win rate can make for a company.
Suppose a company has the following:
of proposals/year/seller: 25
Average sale size: $150,000
See the difference in revenue by sales win rate
Sales Rate 2 - SMF360
With a 40% success rate , this organization's annual revenue is $300 million . At 62%, it's $ 465 million.
That's 55% growth for the entire company without adding any sales people, just by increasing the win rate.
How to track sales profit rate?
The only way to ensure you are improving your win rate over time is to calculate, document, and track your win rates by rep, loss reason, and/or trading stage over time.
We recommend tracking your win and loss rate with SMF360 ’s Sales Metrics Calculator , which helps you calculate and visualize your win rate and determine areas where you should focus your sales improvement efforts.
How to do it right? Would you like to discuss with us in a very informal chat, a quick diagnosis will help you multiply your sales revenues.
Let's talk for 15 minutes, it will be the best 15 minutes of your business life, make an appointment here
