Average Deal Size
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Average Deal Size refers to the average revenue generated per closed deal within a specific period. Average deal size is calculated by dividing the total revenue from all deals by the total number of closed deals.
Formula:
Average Deal Size = (Total Revenue from Deals) Divided By (Number of Closed Deals)
Why Does Average Deal Size Matter
Average Deal Size helps businesses evaluate sales performance, forecast revenue, and optimize pricing and sales strategies. A higher Average Deal Size indicates larger contracts and more closed deals, while a lower Average Deal Size may suggest a volume-driven sales approach.
How to Improve Average Deal Size for Businesses
To improve the average deal size, businesses need to focus on upselling, targeting high-value customers, and refining their pricing strategies.
