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What is Close Rate?

Close rate is the percentage of deals successfully closed compared to the total number of opportunities in a given period. It indicates how effective a sales team is at converting prospects into customers.

Table of Contents

Full Definition

A higher close rate reflects strong sales execution, effective qualification, and product-market fit.

Tracking close rate helps identify bottlenecks and areas for improvement in the sales process.

Close rate benchmarks vary widely by industry and product complexity.

Examples

  • Measures sales effectiveness

  • Highlights conversion success

  • Supports forecasting and goal setting

Benefits

  • High close rate may mask low lead volume

  • Ignoring context can lead to misleading conclusions

  • Close rate alone doesn’t indicate profitability

Common Mistakes

  • Analyze close rate alongside other metrics for comprehensive sales insights.

Conclusion

Analyze close rate alongside other metrics for comprehensive sales insights.

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Other Related Terms

Check out these related terms or view all terms in the category Sales Terminology.

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