sales
Average Deal Size
Average revenue per closed deal. A key driver of sales productivity.
Definition
Average deal size is total revenue divided by number of deals in a period. It's a core sales metric because it determines how many deals you need to hit revenue targets. Doubling average deal size halves the number of deals required - which usually means the same sales effort produces 2x the revenue. The levers: move upmarket (target larger customers), bundle services, add premium tiers, price-test annually. Most service businesses can lift average deal size 20-40% just by raising prices and adding bundles.
In your business
- →Test 10-20% price increases on new customers - measure the impact on close rate
- →Move upmarket selectively - one segment at a time, not the whole book
- →Track average deal size by source - some channels deliver larger deals than others