Both metrics are commonly used to measure sales effectiveness.
This piece argues that marketers should recognise win rate and pipeline conversion rates separately. Each of these metric’s usage in different cases will improve the value of a brand’s diagnostic and predictive analytics.
Win rate is a suitable metric for determining a seller or team’s success of closing deals. It is defined as the “percentage of valid deals closed in specific time period that were won.” But win rate doesn’t account for opportunities that can be won in the future.
The author says that understanding pipeline conversion rates increases the accuracy of numerous operational activities including sales forecasting and setting pipeline among others. This metric is defined as the “ratio of business closed within a given time period versus the open pipeline measured at the start of the same period.”
[3 minute read]