In sales, the closing ratio estimates the number of strategic agreements and presentations by salespersons that are changed over into genuine deals. It is likewise a proportion of the number of agreements that sales specialists close which is utilized to assess how fruitful the salespersons are. The closing ratio is determined by estimating the number of leads closed/converted and the strategic proposals and presentations made. Businesses calculate the closing ratio to decide the number of agents that are performing up to the mark. It also helps in measuring how well a business is doing in the market in comparison to its competitors.
The ratio is determined by calculating the actual deals made by sales experts as compared to the number of business proposals sent out. This proportion additionally looks at the number of sales closed by the business proposals itself. The closing ratio is a significant metric that checks the proficiency of salespersons, it additionally measures the achievement rate attained by salespeople while bringing a sale to a close. For example, if a salesperson has sent 20 proposals out and only 5 of them have been converted into customers then the closing ratio is 5/20 which gives the salesperson a success rate of 25%.
