A close ratio is a term used in sales to describe a salesperson's or sales department's success in completing sales for products or services. This ratio expresses the closed sales as a percentage of total sales presentations made. Businesses use this ratio to evaluate sales performance, industry trends, pricing and products and services offered by the business.
Determine the total number of closed sales made by the salesperson or sales department over a period of time. For example, assume a salesperson made 100 sales presentations in 1 month.
Determine the total number of closed sales made during the same period of time. For example, assume during the same month, the salesperson made 30 sales.
Divide the closed sales by the total sales made. Continuing the same example, 30 / 100 = 30 percent. This figure represents the close ratio for the salesperson.
- "Selling 1001: What Every Successful Sales Professional Needs to Know"; Zig Zigler; 2003
- Trade-Pals: Sales Closing Ratio