Opportunity Win Rate

The percentage of the value of won opportunities relative to the total value of all opportunities closed during the period.

What is Opportunity Win Rate?

Opportunity win rate is one of the most widely-used and well-known business metrics. Essentially, it indicates the share of all closed deals which were successfully closed won.

Why is Opportunity Win Rate Important to Measure?

Opportunity win rate is a key indicator of the company's overall success as a business and more specifically the performance and effectiveness of its revenue engine. This metric can be incredibly useful in evaluating the company's sales performance. Comparing win rates across different products, regions, segments, and marketing channels can uncover market opportunities that can be leveraged or bottlenecks that need to be fixed. Opportunity win rate is also used to examine the sales performance of different sales leaders and areas, as well as specific Account Executives (AEs), Business Development Representatives (BDRs), and Sales Development Representatives (SDRs).

How is Opportunity Win Rate Calculated?

Opportunity win rate is calculated by dividing the number of successfully closed opportunities by the total number of closed opportunities within a given period. Opportunity win rate can be calculated as a share of the number of opportunities (Count), their Total Contract Value (TCV), or their associated Annual Recurring Revenue (ARR).