sales
Sales Conversion Rate
Percentage of qualified opportunities that close. The headline number for sales effectiveness.
Definition
Sales conversion rate is closed-won deals divided by total qualified opportunities (typically SQLs) in a period. For B2B service businesses, 25-40% win rate on qualified pipeline is typical. Under 20% suggests qualification is too loose - too many bad-fit deals reaching sales. Over 50% suggests under-pricing (the deal is too easy) or under-qualifying at the prospect end (they're not real buyers).
In your business
- →Track win rate by sales rep, by source, and by service line - the variance reveals opportunity
- →Under 20%? Tighten qualification, not effort
- →Over 50%? Test a price increase - you're leaving money on the table