A good win rate (win ratio) can set you apart from your competitors, much like Michael Jordan 🏀
But what is it?
Win rate is one of the most critical sales metrics that lets you determine your team's success at completing a sale.
As a sales manager, understanding your win rate helps you:
- Gain visibility 🔍into which sales strategies and tactics work best
- Identify critical ⚠️areas of improvement, including the performance of a specific sales rep
- Spot products or services that bring in the most sales 💰
But how do you calculate your sales win rate?
And how can you improve it?
This post will explore what win rate means, how to calculate it, and three ways a win rate analysis can boost business performance.
We’ll also explore three best practices to improve your sales win rate and introduce you to an unparalleled tool to send your win rate through the roof.
Let’s dunk in!
What Is Win Rate?
Your sales win rate (aka win percentage) tells you how successful your sales team has been in closing open opportunities 🤝
Additionally, the win percentage is a standard metric in a trading strategy.
Traders use the win rate to assess the risk vs. reward — a critical aspect of any trading strategy that helps determine the profit potential of a trade vs. the loss potential of a trade.
However, in a sales strategy, companies use the win ratio metric to compare the total number of won opportunities against the total number of sales opportunities.
For example, if your sales team closes 7 deals out of 10 opportunities, your winning percentage will be 70%.
You can also use the win percentage to determine the performance of specific sales reps and sales periods.
What does this do for your business?
For starters, your sales win rate helps you identify common traits that lead to a successful sale.
As a result, you’ll be able to refine your pipeline to only deal with the most likely-to-convert prospects.
You’ll also be able to identify and resolve problems in your sales cycle, products, or services and train underperforming sales reps.
So, do you want to know how to calculate your sales win-loss ratio?
Don’t worry — we’ve got your back!
How to Calculate Your Sales Win Rate (and Your Loss Rate)
You can calculate your sales win-loss ratio in many different ways.
All you have to do is establish the criteria you want to analyze and wham!
You’ll be managing your sales team in style.
Below, we’ll explain two win rate calculation methods that you can use to judge how your company is doing. But that’s not all. We also threw in an extra loss rate (loss ratio) calculation that can help you improve your overall winning percentage.
1. Win Rates Based on Sales Opportunities
Win rate calculation based on sales opportunity is the simplest and most effective way to determine your team's success rate.
This simple calculation helps you understand how many deals your team has successfully closed vs. how many they’ve lost.
For instance, if your sales team successfully closes 4 out of 8 sales opportunities, your win ratio here will be 50%.
Win Rate Based on Sales Opportunities = Total number of deals closed / Total number of sales opportunities*100
2. Win Rates Based on Amount
Sometimes, your average win rate based on sales opportunity might give you only a glimpse of the whole picture, especially regarding revenue 🤔
For example, let's say your sales team closes 2 out of 4 sales opportunities. Based on the earlier calculation, your average win rate would have been 50%. Not bad!
However, let’s say the deal size was:
- Deal A: $10,000 — Won opportunity
- Deal B: $10,000 — Won opportunity
- Deal C: $20,000 — Lost opportunity
- Deal D: $20,000 — Lost opportunity
Your sales team closed deals worth $20,000 out of a total deal size of $60,000.
In this case, your win ratio was only 33.33%.
Win Rate Based on Amount = Total value of deals closed / Total value of all deals *100
3. Loss Rate Based on Reason
Whether sports or sales, you win some and lose some.
While focusing on your wins is vital for boosting your morale and confidence, reviewing 🔍 the reasons for your losses helps you identify critical areas of improvement.
Calculate your loss ratio by reason, and you’ll understand the most prominent reasons 🚫 in your sales process.
Here's what you'll need to do: Count all the lost deals and group them by reasons, e.g., low budget, timelines, cart abandonment, inadequate features, etc.
Take each group's total and divide them by the total losses.
As a sales leader, you’ll know exactly what you need to change to improve your win rate, just like a top-tier coach who knows when to make a substitution.
Loss Rate Based on Reason = Number of losses by reason / Total number of losses *100
But why should you do all this math?
Let’s find out.
Three Ways Win Rate Analysis Can Boost Business Performance
Decisive win rates usually indicate tremendous success for your business.
But that isn’t all.
Paying attention to the win rate metric can help a sales leader:
1. Optimize Marketing Budgets and Boost ROI
Analyzing your sales win rate can help you identify the best-performing sales channels and campaigns.
For example, if you're running a campaign on LinkedIn and Facebook, you can identify which channel brings you the most sales-qualified leads.
Armed with these insights, you can quickly reallocate marketing budgets and costs, significantly improving ROI.
As simple as making a game-changing substitution 😎
2. Identify Key Areas of Improvement
Besides providing insights into the effectiveness of your sales and marketing campaigns, your win rate analysis can help you pinpoint critical areas of improvement.
This includes sales techniques, strategies, campaigns, and particular stages in your sales process that need to be fixed.
For instance, let’s say your win loss ratio helps you identify a high churn rate at the payment stage.
A deeper analysis may shed some light on why you have a low win rate, like forced account creation, security concerns, or a time-consuming checkout.
It’s a bit like conducting an athlete performance analysis.
Once you know the areas of concern, it’s just a matter of applying the right tweaks.
3. Accurately Forecast Future Sales
Ever wondered how well online poker players can predict almost every move?
It’s because most online poker players use powerful software like Holdem Manager.
With Holdem Manager, online poker players review and analyze results, helping them make more informed decisions.
Similarly, analyzing your win loss ratio can help you forecast how many sales you will make in a month, quarter, or year.
You can determine how many leads you'll need to reach your sales goals using existing sales data.
For example, if your win rate is 10%, you'll need at least 100 leads to reach a goal of 10 sales.
As a result, you'll be able to set realistic targets for your sales team and better manage your budgeting, marketing costs, and other revenue-impacting aspects.
Three Best Practices to Help Improve Your Sales Win Rate
Want to improve your sales win rate?
Follow these five best practices and watch your sales win rate skyrocket:
1. Find Out What Motivates Your Buyer’s Decisions
All good coaches know how to get the best out of their players.
A sales rep is no different.
Speak to your customers, and ask them:
- How does your product or service make their life easier?
- What drives them personally and professionally?
- What does success look like for them?
With these insights into your prospect's world, you can deliver what they want more consistently and boost your wins.
2. Foster Relationships and Involve Decision Makers Early
It’s frustrating when deals fall off in the final stages.
That's why it's essential to involve decision-makers early in the sales process so you don't get caught off guard.
When you communicate with your prospect, find out:
- The company’s internal evaluation process.
- If there are multiple stakeholders involved.
If you’re talking to a prospect who isn't a decision-maker at their company, you could be wasting your time 🙄
3. Score Leads to Find High Potential Opportunities
Teams will only bid for a player after reviewing the stats.
So why should you chase leads without knowing their likelihood of converting?
A lead scoring system can assign a point value to each lead based on behavioral, engagement, and firmographic attributes.
For example, a lead that engages with your product’s new features will get a higher score than a lead that just signed up but hasn’t been active.
This means your lead accumulates points for every positive action, kinda like the sports points table!
The more games you win, the more points you gain.
And how does this tie into your win rate?
The team (or lead in this case) with the most points is the champion, aka a product-qualified lead 😉
Lead scoring will help you filter out the bulk of low-potential leads, leaving you to target only the most likely-to-convert opportunities. This automatically gives you a high win rate!
Want to learn how lead scoring works?
Check out this detailed guide on how to score leads, its benefits, and the best practices.
But here’s a cheat code: skip the scores, just use Toplyne instead!
Because with a behavioral lead scoring tool like Toplyne, you can get all of this and more with just a few clicks 🖱️
Jonesing to learn about this solution-to-all-your-problems we keep talking about?
Toplyne: The Ultimate Tool To Skyrocket Your Sales Win Rate
We've said this before, and we'll repeat it:
A good win rate is a surefire way to improve sales revenues.
But to do that, you need to ensure you’re moving ONLY the most sales-qualified leads down your marketing funnel.
And no tool does that better than Toplyne.
Toplyne is a behavioral Iead scoring tool that creates a high-intent funnel of sales-qualified leads.
You'll witness a spike in your sales win rate, revenues, and NRR (net revenue retention).
Here’s how companies like Canva and Vercel generate sales pipeline from their self-serve funnel using Toplyne:
- Step 1/7: Create monetization playbooks to surface conversion and expansion opportunities (leads most likely to convert to paying customers, and teams most likely to grow into larger teams)
- Step 2/7: Choose the right leads to target – users (individual users) or accounts (a group of users with an organization).
- Step 3/7: Select the frequency at which you would want leads synced in your GTM apps.
- Step 4/7: Define how many leads you want by either the number of leads or your expected win rate, depending on your sales capacity and GTM strategy.
- Step 5/7: Build custom segments - Build custom segments based on And/Or logic at the deepest level of sub-properties within your product analytics.
- Step 6/7: Validate your GTM strategy - Hold back some users as a control group to test your GTM strategy.
- Step 7/7: Sync your product qualified pipeline into your GTM destinations - CRMs, sales & marketing execution tools, and customer engagement platforms.
Toplyne: Score Each Goal ⚽ and Beat Your Win Rate Records!
Your sales win rate is a powerful metric 💪 that helps you understand what's at stake.
That means you’ll be able to optimize your marketing spends 💸, spot critical areas of improvement 🔧, and accurately predict future sales figures 🔮quickly and smoothly.
If you’re looking to knock 👊 your competitors out of the ring, you’ll need a sleek headless AI tool like Toplyne.
With Toplyne, you can create a high-intent sales pipeline, resulting in a more significant, better win rate.
So, why wait?
Sign up to Toplyne for free today for a knockout addition to your existing sales stack!