What is Average Deal Size?
Average Deal Size is the typical revenue generated from a closed deal. It’s calculated by dividing total revenue by the number of deals closed within a specific period, helping assess sales value and forecasting accuracy.
Table of Contents
Full Definition
Tracking average deal size helps optimize sales strategies and pricing.
Larger deal sizes often indicate higher customer value or upselling success.
It supports revenue forecasting and sales performance evaluation.
Examples
Helps forecast revenue
Guides sales focus on deal value
Supports pricing strategy adjustments
Benefits
Overemphasis on deal size can ignore volume
Can vary significantly by market or segment
Needs context with other metrics
Common Mistakes
Balance focus on deal size and volume for sustained growth.
Conclusion
Balance focus on deal size and volume for sustained growth.