Of all the deals in your pipeline, what percentage do you actually close?
Sales close ratios let you know how effective you are as a sales rep. As a great way to measure performance, the higher the close ratio, the better you are at converting opportunities in the pipeline into revenue.
How exactly do we measure the Close Ratio for Funding Pros?
The Close Ratio is typically calculated by dividing the number of actual closed deals by the number of lead opportunities the sales rep had during a given time period.
A simplistic approach to take for Funding Pros is to divide the number of actual Funded deals by the number of leads that actually had Approvals out on them.
Funding Pro had 10 deals with Approvals out on them last month.
He/she funded 4 of them.
Closing Ratio for last month was 40%.
Other variables can come into play from the Approval Stage to the Funded Stage in the Sales Process, but this is the simplest way to measure this important metric.
According to one of Hubspot’s 2020 research studies, analyzing over 8,900 companies sales teams across 28 industries, here are some notable close ratios by industry:
- Biotechnology – 15%
- Business & Industrial – 27%
- Software – 22%
- Electronics & Hardware – 23%
- Financial Services – 19%
What are your 2021 closing ratio goals?