Description
Win rate is a metric to gauge the sales team's success over a period. Companies typically estimate it based on the number of sales made by a team and compare it against the net sales opportunities for the period.
Example
Suppose Vareto had 25 sales opportunities and its sales teams could only convert 15 of them. They divide the successful sales by the number of sales opportunities available, which is 15 / 25 = 0.6. This sales variable multiplied by 100 will give a win rate of 60%.
Why it matters
Some of the reasons why win rates matters to businesses are to get a better understanding of company's financial health, identify areas of improvement, predict future sales and ensure stakeholder satisfaction.