Your sales close rate is a number you need to keep a close eye on. Out of all the deals in your pipeline, what percentage do you actually close?
Sales close rates let you know how efficient and effective you are as a sales rep. And it’s a good way for managers to measure sales rep and sales team performance. The higher the close rate, the better your rep and team are at converting opportunities in the pipeline into revenue.
While it’s great to have internal metrics, it’s also good to know how you compare to other sales organisations in your industry, including your competitors’. With industry benchmarks, you can evaluate how you or your team are performing in the overall landscape, which is not only a good reality check but gives you a better understanding on whether improving your close rate is something you need to prioritise now.
The close ratio is a measure of a salesperson’s efficiency. It’s calculated by dividing the number of closed deals by the number of prospects the salesperson worked with.
Let’s say a salesperson closed 10 deals out of the 40 they were working. The close ratio in this case is 25%.
Once you’ve calculated your close ratio, you can compare it to industry benchmarks and targets.
Sales Close Rate by Industry
To help you figure out where you stand, Hubspot analysed the close rates of over 8,900 companies’ sales organisations across 28 industries and multiple sizes to put together a set of sales close rate benchmarks.
Here are a few sales close rates by industry:
Biotechnology Industry Close Rate: 15%
Business & Industrial Industry Close Rate: 27%
Computer Software Industry Close Rate: 22%
Computers & Electronics Industry Close Rate: 23%
Finance Industry Close Rate: 19%
How do you compare against these benchmarks?