Definition
The average dollar value of closed-won deals in a period.
Formula
Total value of closed-won deals / Number of closed-won deals
How to measure
Sum the value of every deal closed won during the period and divide by the count of those deals.
Why track it
Tracking average deal size over time reveals whether a company is moving into larger accounts or relying on volume of smaller deals.
Example
A company's average deal size grows from $8,000 to $22,000 as it shifts focus toward mid-market accounts.
FAQ
- What is Average Deal Size?
- The average dollar value of closed-won deals in a period.
- How do you calculate Average Deal Size?
- Total value of closed-won deals / Number of closed-won deals
- Why track Average Deal Size?
- Tracking average deal size over time reveals whether a company is moving into larger accounts or relying on volume of smaller deals.