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Average Sales Win Rates: How Do You Compare?

Most sellers and sales leaders are often asking themselves: "Is my win rate any good?"

Win rate is one of the most basic measures of your sales success, so it’s only natural to want to benchmark your performance against the average to see how you stack up.

The answer to this question isn’t so straightforward, however. Before we dig in, we need nail down what “win rate” actually means.

Here’s how we define sales win rate: The percent of opportunities proposed or quoted that the organization won.

This definition is important because it’s based on opportunities that make it to the proposal stage—not all opportunities that enter your pipeline.

To provide sales organizations and individuals with a benchmark for win rate and other metrics, the RAIN Group Center for Sales Research surveyed 472 sellers and sales executives representing companies with salesforces ranging in size from 10 sellers to 5,000+. Among other things, we wanted to know: what is the average sales win rate, and how do win rates vary based on overall performance?

Across all respondents, the average win rate is 47%.

Win/Loss Rates Across All Respondents

avg-sales-win-rates-chart-1.png

It’s worthwhile to note that though there were slight variations among industries and company sizes, their win rates were similar. Our findings are applicable to organizations of all sizes.

We broke respondents down into 3 groups based on their sales results: Elite Performers (representing the top 7% of respondents), Top Performers (representing the top 20%), and The Rest (representing the remaining 80%). When we look at win rate by each performance group, the differences are surprisingly large.

Top Performance and Win Rate

avg-sales-win-rates-chart-2.png

Elite Performers win nearly three-quarters of their opportunities. The Rest only win 40%—and this group represents 80% of all respondents.

This large gap in win rate between performance groups represents a huge opportunity for companies willing to invest in becoming Elite and Top Performers.

You might think that moving from a 40% win rate to 62% doesn’t sound like much. But simple math reveals just how big a difference even incremental improvements in win rate can make for a business.

Assume a company has the following:

  • # of sellers: 200
  • # of proposals/year/seller: 25
  • Average size of sale: $150,000

Look at the difference in revenue by win rate:

The Win Rate Difference

avg-sales-win-rates-chart-3.png

At a win rate of 40%, this organization’s annual revenue is $300 million. At 62%, it’s $465 million.

That’s 55% growth for the whole company without adding any sales headcount—just by increasing the win rate.

Now it’s time to plug in your own numbers and do the math. What difference can increasing your win rate make for you and your organization?

Additional Reading
Infographic: 5 Sales Skills to Differentiate Your Team

In our recent Top-Performing Sales Organization study, we were particularly interested in the sales skills that stood out when sellers not only met their goals, but also believed their goals were challenging.

[New Research] Benchmark Report on Top Performance in Strategic Account Management

When we studied strategic account management in 2012, 59% of sales leaders believed there was greater than 25% revenue growth potential in their existing accounts.

In a separate, more recent research initiative, we found that the #1 priority for sales leaders in the year ahead is to increase business with existing accounts. We also discovered that Top Performers are nearly 2x more likely to be effective at maximizing sales to their existing accounts.

5 Essentials for Managing Your Sales Organization’s Talent

Attracting and retaining top sales talent is a huge challenge for many companies.

If you want to take your sales results to the next level, your organization must have the right people in the right roles, performing at a high level day in and day out. You also need the right management team with an effective process in place to ensure this all happens.

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