Closed Won

Throughout the sales process, there are various stages that a prospect will go through before they become a paying customer. Starting with prospecting, the sales funnel narrows as prospects move through each stage until they reach the final closing stage. At the end of the sales funnel, you will need to denote whether you won or lost the deal in your CRM.

In Salesforce and other CRMs, “Closed Won” is the term used for successfully closing a deal with a prospect. This means that they have agreed to purchase your product or service and are now considered a customer.

What Is Closed Won in Sales?

“Closed won” is the term used in sales to describe a deal that is fully complete. This could refer to new customer acquisition or upselling an existing customer.

In either case, closed won deals represent revenue for the company. The term is often used in contrast to “closed lost“, which refers to deals that were not successfully closed.

While every salesperson wants to close as many deals as possible, not every deal can be won. Sales is a numbers game, and closed won deals are the ones that contribute to revenue growth.

Synonyms

• Closed Deal: to finish a deal; to settle an agreement.
• Closed Sale: a completed sale; a transaction in which goods or services have been exchanged for money.
• Deal Closing: the final negotiation stage; the process of completing a deal.

Key Metrics for Closed Won Deals

Let’s take a look at some of the key metrics that you should track for closed won deals:

Deal Conversion Rate

Your deal conversion rate is the percentage of deals that move from one stage to the next and eventually get closed.

While there’s no magic number for what a good deal conversion rate is, most businesses aim for a rate of 2-5%. If you’re falling below this range, it could indicate that your sales process is too long or that you’re not qualifying your leads properly. 

Average Sales Cycle

The average sales cycle is the length of time, on average, that it takes for a salesperson to successfully close a deal.

This metric can help salespeople identify inefficiencies in the sales process and optimize resources. If the average sales cycle is excessively long, it may indicate that the sales team is not following up with leads promptly. Alternatively, if the average sales cycle is unusually short, it could suggest that the sales team is not thoroughly evaluating prospective customers.

Quota Attainment

When tracking sales KPIs, quota attainment is one of the most important metrics to pay attention to. Sales management uses this metric to measure how close the sales team is to achieving their monthly, quarterly, or annual sales goals.

This metric is important because it provides visibility into whether the sales team is on track to hit their targets. If quota attainment is low, it could indicate that the team needs more support or that the quotas are unrealistic.

Win Rate

The win rate is the percentage of deals that are closed won. This metric is important because it provides insight into the sales team’s success rate.

A high win rate indicates that the team is effective at converting leads into customers, while a low win rate may indicate that there is room for improvement. Several factors can affect the win rate, including the quality of the leads, the size of the deals, and the skills of the sales team. 

Average Deal Size

Sales Ops uses this metric to determine how much revenue the sales team generates per closed deal, and it can be a useful benchmark for comparing performance over time.

Deal size is largely determined by the product or service being sold and complex pricing models, but it can also be affected by the skills of the salespeople and the quality of the leads.

What Sales Teams Can Learn from Closed Won Data

Sales teams can learn a lot from analyzing their customer data. By understanding which deals were successfully closed, and why, sales teams can adjust their strategies to close more deals in the future.

Closed won data can also help sales teams identify patterns and trends, such as common objections or challenges that occur during the sales process. By understanding these patterns, sales teams can be better prepared to overcome challenges and close more deals.

Analyzing closed won data helps sales teams discover new growth opportunities. For example, if a sales team notices that they are closing a higher percentage of deals in a certain industry, they may decide to focus more of their attention on that industry in the future.

How to Close a Deal

Closing a deal takes more than just a quick pitch and a firm handshake. It requires careful planning, an understanding of the customer’s needs, and the ability to build trust.

Perhaps most importantly, it requires the ability to listen. Active listening allows salespeople to pick up on cues that can help them tailor their pitch and overcome objections. It also shows the customer that you’re truly invested in finding a solution that meets their needs.

With these things in mind, here are a few tips for closing a deal:

• Don’t rush into things. When salespeople take the time to build relationships and understand their customers, they’re more likely to close the deal.
• Don’t be afraid to ask questions. Asking questions shows interest in finding a solution that meets the customer’s needs.
• Be prepared to overcome objections. Anticipating objections ahead of time can help salespeople defuse them before they become a problem.
• Be conversational. A friendly, conversational tone helps build rapport and makes it more likely that the customer will give a salesperson their business.
• Only close clients that need the product or service. Pressure tactics may work in the short term, but they’ll only damage relationships in the long run.

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