Sales Closing Ratio

Sales Closing Ratio

Your sales closing ratio is the succes rate of completing your sales. It is expressed as a percentage. For example, let us say that you are a salesperson and you make ten sales presentations per week. On average you make two sales per week. Since you make ten presentations and get two sales, that means your sales closing ratio is two out of every ten, or 20% when expressed as a percentage. The higher your closing ratio the better.

How high should your closing ratio be to be considered good? That question, on it's own, cannot be answered. Your closing ratio can only be measured by comparing it to your peers that are selling same or similar products. If, on average, your closing ratio is above the average of your peers selling the same product, then you closing ratio is good. If your closing ratio is above the average of your peers in different companies selling similar products, then your closing ratio is good as well.

Sales closing ratios of salespeople selling similar products in different companies within the same industry may differ due to external factors, meaning that there may be factors beyond the salesperson's personal selling skills that influence the rate at which sales are closed. Factors such as the company's reputation or customer service after the sale are not directly influenced by the salesperson, yet may influence the actual closing ratios.

Factors that influence sales closing ratios are many and include such things as persuasion skills, product knowledge, physical appearnce, level of professionalism, likeability, friendliness, and verbal skills of the salesperson. All skills that can help close salescan be learned to a degree.

Many would say that sales is a numbers game and sales is full of stats. Your sales closing ratio is one such stat that you could improve to be more successful at sales in general.