What is closing ratio?
By closing ratio, we mean the number of addressed potential customers who also ended up making a purchase compared to all pitches that were made. It is expressed as a percentage.
- It is used to Measure How efficiently a salesperson or sales team operates.
- It can give other sellers an idea of how much they have to sell on average and see whether they perform above or below average.
- It can also help management manage the fix targets in a given period for the entire sales team.
So the closing ratio is useful for a lot of things and for the entire sales team.
How do you calculate this percentage?
To calculate the closing ratio, divide the number of customers who proceeded to make a purchase by the number addressed prospects or customers. To improve this percentage, you can do several things. You can check whether the leads are a good enough match to the products or services, sell to already existing customers or put more effort into follow-up calls.
Sales quiz
How strong is your sales knowledge? Challenge yourself and gain insight into your sales skills!
Whitepaper
Want to know even more? Download our white paper get inspired by 5 useful sales tips.
Newsletter
Keep up with the latest sales developments through our newsletter.