Closed Won
In the world of sales, "Closed Won" refers to a successful outcome. It signifies that a salesperson has converted a potential customer, or lead, into a paying one. The deal is finalized, meaning the customer has agreed to purchase the product or service and all necessary steps are complete, such as signing contracts and receiving payment.
Essentially, "Closed Won" represents a win for the sales team and signifies revenue generation for the company. It's the opposite of "Closed Lost," which indicates a deal that wasn't won.
Close Won Rate Formula
Close Won Rate = (Number of Closed Won Deals / Total Number of Deals Closed) x 100%
Explanation:
- Number of Closed Won Deals: This refers to the total number of deals that have been finalized with a purchase by the customer.
- Total Number of Deals Closed: This includes both successful ("Closed Won") and unsuccessful ("Closed Lost") deals that have reached a final outcome.
Example:
Imagine a salesperson closed 10 deals in a month, with 8 converting to paying customers ("Closed Won") and 2 deals not finalizing ("Closed Lost").
Close Won Rate = (8 Closed Won Deals / 10 Total Closed Deals) x 100%
Close Won Rate = 80%
Points to Consider:
This formula typically applies to a specific timeframe, such as a month, quarter, or year.
You can calculate the Close Won Rate for individual salespeople or the entire sales team.
A higher Close Won Rate indicates a more effective sales process and strategy.
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