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Businesses track various sales metrics, with the sales win rate being one that is closely scrutinized. Sales win rate is a commonly used metric in sales performance management to assess and enhance the success rate of your sales team in each sales cycle.

Companies that have well-defined win rate criteria, regularly track their win rate, and take strategic steps to improve it are more likely to convert a higher percentage of prospects into customers.

This article dives into the definition of a sales win rate, methods for calculating it, and tips for improving the sales win rate in your company.

What does the sales win rate mean?

The sales win rate is calculated by dividing the number of closed final-stage prospects that became customers by the total number of potential deals in a specific period.

Win rate is a metric used by companies to analyze which time periods, sales reps, and win/loss reasons have the highest likelihood of converting prospects into customers.

Sales teams utilize two different types of win rates. The first type of calculation is determined by dividing the number of deals won (closed deals) by the total number of sales opportunities. This ratio assists in analyzing whether your marketing and sales strategies are reaching the intended audience.

Some sales teams utilize a different type of win rate calculation that excludes certain opportunities. It filters out unqualified leads. These are potential customers who have viewed a demo, received a quote, or listened to a sales pitch but ultimately chose not to make a purchase—either from your company or your competitors. Utilizing this win rate formula enables you to prioritize converting qualified leads and gain insight into your performance relative to competitors.

Why is the sales win rate important?

Understanding individual sales rep and team-wide win rates is crucial for analyzing performance and making informed decisions. Analyzing win rates can be beneficial for sales teams looking to increase productivity and revenue.

Win rates help sales leaders, managers, and representatives identify strengths and weaknesses in the sales process over time. The data provided can assist in guiding a department that may be lacking, allowing for corrective action to be taken before it becomes critical.

A low win rate for your business may suggest one of two possibilities:

  • You may not be targeting the ideal customers who are not a perfect fit for your product or service, or...

  • The sales team is not meeting expectations and needs to have a shift in focus.

Identifying potential problems allows businesses to implement corrective measures for improved sales outcomes.

Benefits of tracking sales win rate

Tracking sales win rate is an essential task that requires attention to detail. The process will increase efficiency and allow for more resources to be allocated towards expanding operations.

The importance of tracking win rate is evident for sales professionals, marketers, analysts, and business operations for various reasons.

Improves sales performance

Analyzing conversion rate data helps identify both strengths and areas for improvement within the sales team. This information plays a key role in improving the sales process and boosting the win rate.

For example, the sales team may face challenges in securing sales in a particular market segment. Analysis allows for the allocation of additional resources to specific areas and the provision of further training for the sales team.

Helps forecast

Tracking your win rate can assist in predicting sales income more precisely. Understanding the rate allows you to calculate the amount of successful transactions and the resulting revenue within a defined timeframe.

The information will assist in planning for future growth and allocating resources effectively. Stakeholders and investors receive valuable information about a company's potential. Accurate forecasting contributes to improved decision-making and resource allocation.

Helps you identify cause and effect

Identifying cause-and-effect relationships in a process can be challenging due to uncertainty about how one variable influences others. Tracking the win rate can assist in analyzing the relationships between variables and outcomes.

Making data-driven decisions simplifies the process of asking questions and seeking answers. The data provides information to address inquiries like:

  • What are the key products or services in my business?

  • What percentage of incoming deals are being converted?

  • Which outreach channel is the most or least effective?

  • What is the cost to acquire a single customer?

Helps you benchmark

Win rate tracking enables comparison of performance with industry competitors and standards. The insight allows for a comparison of performance with others in the same industries and helps identify areas for improvement. Utilize this information to refine your sales tactics and marketing strategies for improved competitiveness.

How to calculate the sales win rate?

The sales win rate is determined by dividing the number of closed-won deals by the total number of deal-stage prospects, including those that did and did not become customers.

To determine your sales win rate, please follow the steps outlined below:

Specify the time period for which you are making calculations

When analyzing win rates in your sales department, it is important to specify the time period represented in your calculations. While tracking a perpetual win rate over the company's history is valuable, it may be beneficial to delve deeper into the data for a more detailed understanding. Consider calculating win rate by month, quarter, or year, and specify which timeframe is the standard for tracking progress within your company.

Define your win-loss criteria

Define what it means to win or lose a deal. Many companies use the number of prospects who make a buying decision as the criteria for determining wins and losses. Only those who choose a competitor are counted as losses.

Certain companies opt to include "No Decision" in their win-loss rate metric. This means that if a prospect has received a demo, viewed a quote, and ultimately decides not to make a purchase from your company or any competitors, that contact would be factored into your win rate.

Depending on the industry and the target audience, either of these scenarios could be valid. It is important to maintain consistency in determining which accounts are included in your win rate calculation.


After determining the time period and evaluating the outcome of deals, it is now time to calculate. To calculate the conversion rate, divide the total sales by the number of sales opportunities and multiply by 100.

  • Sales win rate = (Closed-won deals/ Closed-won deals + Closed-lost deals) x 100

How to improve sales win rate

Follow these tips to improve your sales win rate and to make sure your sales efforts do not go in vain:

Automate wherever possible

It is well-known that account executives (AEs) are primarily responsible for closing deals. They have not been particularly proactive in managing their pipeline coverage; however, with decreasing SDR ratios and inbound demand, they should focus on prospecting to improve their situation. Sales leaders can streamline the prospecting process for account executives by eliminating time-consuming and tedious tasks. By providing sales teams with a unified system that automates tasks usually done manually, leaders can enable their account executives to focus more on important sales activities instead of switching between multiple systems.

Nurture your leads

Once a lead interacts with one of your marketing campaigns, it is important to respond promptly. The longer you wait to respond after an engagement, the more the chances for your conversion rate to decrease. An efficient inbound lead workflow is crucial. It is beneficial for teams to prioritize building strong customer relationships from the beginning, rather than missing out on potential leads. An effective lead nurturing strategy involves educating leads about the product, sharing relevant content, answering questions confidently, and taking a customer-centric approach to help them see the benefits of your product. This helps in creating a smoother sales journey.

Also read : A Practical Guide to Creating an Effective Lead Nurturing Strategy

Involve the decision maker as soon as possible

One strategy for increasing the win rate in the future is to involve decision-makers in the process right away. By involving decision-makers early on, potential sales without serious potential can be identified and blocked quickly, while sales with promise can be smoothly progressed without any roadblocks from decision-makers later on.

Establish clear timelines

Miscommunication and scheduling conflicts may prolong the selling process or lead clients to lose interest in a product or service. In order to boost sales, it is important to set clear expectations and communicate effectively with potential customers in sales calls or sales meetings. Consistent communication helps you follow up with clients and stay in their thoughts. Making use of customer relationship management software facilitates the management and monitoring of communication channels. 

Boost your sales win rate by utilizing sales execution technology

Measuring win rates can provide valuable insights for sales teams to evaluate their progress and performance. However, it is important to go beyond just calculating the percentage won to stay competitive. To achieve continuous improvement, sellers require a comprehensive understanding of how each effort contributes to their success or failure, while leaders need appropriate tools to swiftly make large-scale changes to workflows, processes, and coaching based on insights.

One of the ways you as a sales leader can improve your win rate is by upgrading your demo environment which can help you deliver hyper-personalized demos in a very quick time. You should do this as it helps in creating a dynamic experience tailored to each stakeholder's needs, streamlining the sales team's efforts to showcase the value of your product effectively to various stakeholders.

Creating kickass interactive demos is now possible with the help of Fable. Creating sales demos isn't a time-consuming task anymore. Within a couple of minutes, you can create personalized demos tailored to the needs of each stakeholder. Take Fable for a test drive today!

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