What is opportunity win rate?
Opportunity win rate is one of the most widely-used and well-known business metrics. Essentially, the opportunity win rate indicates the share of all closed deals which were successfully closed-won.
Why is opportunity win rate important to measure?
Opportunity win rate is a key indicator of the company’s overall success as a business and more specifically the performance and effectiveness of its revenue engine. This metric can be incredibly useful in evaluating the company’s sales performance. Comparing win rates across different products, regions, segments and marketing channels can uncover market opportunities that can be leveraged or bottlenecks that need to be fixed. This metric is used to examine the sales performance of different sales leaders and areas, as well as specific AEs, BDRs and SDRs.
How is opportunity win rate calculated?
Opportunity win rate is calculated by dividing the amount of successfully closed opportunities by the amount of all closed opportunities within a given period. Opportunity win rate can be calculated as a share of the number of opportunities (Count), their Total Contract Value (TCV) or their associated Annual Recurring Revenue (ARR).
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Also known as
- Deal Win Rate
- Success Rate
- Sales efficiency
- Lead-to-won opportunity conversion rate