"What get measured, gets managed.” – Peter Drucker

What is a reasonable close rate for your salespeople?
I saw a hot take that sales forces are broken because their close rates have hovered between 25-35%, well, forever. The insinuation was that a higher functioning sales force has a higher close rate.
I don't agree. There's a reason sales forces close 1 in 3 proposals they forecast. And it's not issues with closing.
In general, closing 30% of proposals is an indication of peak production. In the F.I.T. graph, this range represents the sweet spot between not working to potential, and being held to unrealistic expectations. If a salesperson is closing 80% of their proposals, they are missing opportunities. Conversely, if a salesperson is closing 10% of their proposals, they are missing something in the sales process. Neither situation is good or bad, but they help guide management.
Take me for instance. I have a 75% close rate. I am missing opportunities, but since I don't work for anyone it works for my business. If I went to work for a consulting firm I would expect to be held to a different standard. What works for me as a solo practitioner can't support other staff. A 30% close rate in that situation makes more sense because it keeps me engaged/striving, and it leaves fewer opportunities unworked. To get to a 30% close rate I need to see a lot more people, and make a lot more presentations.
On the flip side, if I worked for a firm and my close rate were in the 10% range, this would be an indication that something is wrong. Having to hear 9 "no's" before getting to a sale is something only a masochist appreciates. If the close rate is that low I'm looking in the mirror for blame, or to external factors like market positioning/offerings.
When prospects tell me close rates need to be higher, this is my heuristic. Close rate needs to be higher? What is it now? What do you want it to be? What's the value of the difference? How does this match up to what I know to be true?
A 30% close rate doesn't indicate a broken sales process. It is one indicator of your process' health, and most of the time it's a positive one.
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