𝗗𝗶𝘀𝘀𝗲𝗰𝘁𝗶𝗻𝗴 𝗪𝗶𝗻 𝗥𝗮𝘁𝗲: 𝗪𝗵𝗮𝘁 𝘁𝗵𝗲 𝗣𝗼𝗹𝗹 𝗥𝗲𝘃𝗲𝗮𝗹𝘀 𝗔𝗯𝗼𝘂𝘁 𝗦𝗮𝗹𝗲𝘀 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝗺𝗲𝗻𝘁

Win rate is one of the most scrutinised metrics in sales. It shapes forecasts, influences strategy, and determines efficiency.

❓𝗕𝘂𝘁 𝗵𝗼𝘄 𝘀𝗵𝗼𝘂𝗹𝗱 𝗶𝘁 𝗯𝗲 𝗰𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗲𝗱?

I ran a LinkedIn poll to find out how sales professionals define Win Rate %. The results were revealing:

Each approach tells a different story about sales performance. Let's dissect each option for win rate.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟭: 𝗖𝗹𝗼𝘀𝗲𝗱-𝗪𝗼𝗻 / 𝗖𝗿𝗲𝗮𝘁𝗲𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 (𝟰𝟭%)

This approach measures success against the number of opportunities created within the same time period.

𝗣𝗿𝗼𝘀

• Provides a simple, time-bound measurement.

• Useful for businesses with short, predictable sales cycles.

• Reflects how many new opportunities actually result in revenue.

𝗖𝗼𝗻𝘀

• Doesn’t work well for longer sales cycles. Deals created and won may not align within the same timeframe.

• Ignores opportunities that spill over multiple periods.

• Can misrepresent win rate if pipeline creation fluctuates.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟮: 𝗢𝗽𝗲𝗻 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 / 𝗖𝗹𝗼𝘀𝗲𝗱-𝗪𝗼𝗻 (𝟭𝟭%)

This method calculates the percentage of open opportunities that eventually convert into Closed-Won deals.

𝗣𝗿𝗼𝘀

• Accounts for all deals in the pipeline, regardless of when they were created.

• Helps sales teams understand long-term conversion success.

• Avoids artificial spikes or dips tied to specific time periods.

𝗖𝗼𝗻𝘀

• Lacks a clear timeframe, making it difficult to use in forecasting.

• Can be misleading if old, inactive opportunities remain in the pipeline.

• Doesn’t differentiate between opportunities at different stages.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟯: 𝗖𝗹𝗼𝘀𝗲𝗱-𝗪𝗼𝗻 / 𝗔𝗹𝗹 𝗖𝗹𝗼𝘀𝗲𝗱 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 (𝟯𝟰%)

This approach focuses on the percentage of Closed-Won deals compared to all closed opportunities (both won and lost).

𝗣𝗿𝗼𝘀

• Highlights efficiency in converting deals, excluding open pipeline noise.

• Useful for understanding close-ratio effectiveness.

• Reflects how well sales teams are handling qualified opportunities.

𝗖𝗼𝗻𝘀

• Doesn’t account for deals still in progress.

• May not reflect the full story if deals take a long time to close.

• Can be skewed if teams close out old, stalled deals at once.

𝗢𝗽𝘁𝗶𝗼𝗻 𝟰: 𝗖𝘂𝘀𝘁𝗼𝗺 𝗗𝗲𝗳𝗶𝗻𝗶𝘁𝗶𝗼𝗻𝘀 (𝟭𝟰%)

Some respondents offered different perspectives, such as weighting win rate based on deal size or measuring conversion by stage progression.

➡️ 𝗞𝗲𝘆 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀

There is no single "correct" way to calculate win rate. The best approach depends on sales cycle length, forecasting needs, and pipeline structure.

If your sales cycle is short, Option 1 might be effective.

If you're focused on pipeline health, Option 2 could be useful.

If you want to measure pure sales execution, Option 3 is likely the best fit.

A hybrid approach may provide the most accurate, actionable insights.

💭 𝗙𝗶𝗻𝗮𝗹 𝗧𝗵𝗼𝘂𝗴𝗵𝘁

Win rate isn't just a number, it's a lens into sales performance. But if the metric doesn’t align with your business realities, it can mislead decision-making.