Terms

Closed Won

Closed won is a sales term for a deal that has been successfully completed, meaning a prospect has agreed to purchase a product or service and is now officially a customer. This term marks the final stage in the sales cycle, where the opportunity is recorded as won within a CRM system. It applies not only to new customer acquisitions but also to renewals and upsells with existing clients, ultimately representing new revenue for the company.

Importance in Sales Strategy

Tracking closed won deals is vital for refining your sales strategy. By analyzing these successes, you can identify which tactics, messaging, and channels are most effective. This data provides a clear roadmap for replicating success across the entire sales team.

This analysis also offers crucial insights into your ideal customer profile and product-market fit. Understanding why customers buy helps marketing sharpen its messaging and targeting. Ultimately, a firm grasp on your win rates improves sales forecasting and drives predictable revenue growth.

Impact on Revenue Forecasting

Closed-won data is the bedrock of reliable revenue forecasting. It transforms predictions from speculative guesses into data-backed financial models by providing a clear, historical measure of sales success. This allows businesses to project future income with much greater confidence.

  • Predictability: Establishes a baseline win rate for modeling future sales outcomes.
  • Accuracy: Grounds financial projections in actual, historical performance data.
  • Performance: Measures progress against quotas, directly informing revenue attainment forecasts.
  • Growth: Reveals trends in deal size and velocity to refine future growth assumptions.

Closed Won vs. Closed Lost

The primary difference between these two outcomes lies in their impact on revenue and strategic learning.

  • Won: This status signifies a successful sale, contributing directly to revenue and validating product-market fit. Analyzing these deals helps companies of all sizes replicate successful strategies. Enterprises use this data for large-scale forecasting, while mid-market firms focus on identifying effective tactics for growth.
  • Lost: This marks an unsuccessful outcome, providing valuable feedback on why a deal failed. While it represents missed revenue, analyzing lost deals helps identify product gaps or process flaws. Enterprises use this analysis for strategic shifts, while mid-market companies use it to refine their sales process.

Best Practices for Achieving

Securing a 'closed won' status requires a blend of strategic planning and skillful execution. It's about building genuine connections and guiding the prospect to a confident decision. Adopting these best practices can significantly increase your win rate.

  • Listening: Actively listen to understand the prospect's core needs and challenges.
  • Relationships: Build genuine rapport and trust beyond a transactional level.
  • Value: Clearly articulate how your solution solves their specific problems.
  • Objections: Proactively address and handle concerns to remove buying friction.
  • Process: Guide the prospect through a clear, transparent, and ethical sales process.

Common Challenges and Solutions

Overcoming common obstacles is key to converting opportunities into wins.

  • Stalling: Maintain momentum with a clear, mutual action plan.
  • Competition: Differentiate by focusing on unique value and ROI.
  • Approvals: Navigate internal processes by identifying all decision-makers early.

Frequently Asked Questions about Closed Won

How is 'closed won' different from a verbal agreement?

A verbal agreement is a positive step, but 'closed won' is official. It requires a signed contract or initial payment, marking the formal completion of the deal in your CRM and the start of the customer relationship.

Does 'closed won' always mean a new customer?

Not necessarily. While it often signifies a new customer, 'closed won' also applies to successful renewals, upsells, or cross-sells with existing clients. Any deal that generates new or recurring revenue for the company qualifies.

What's the best way to track 'closed won' deals?

The best practice is using a CRM system. This centralizes data, automates reporting, and allows your team to track deal progress, analyze win rates, and forecast revenue accurately. It provides a single source of truth for performance.

Other terms

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Solution Selling

Solution selling is a sales approach focused on understanding a customer's pain points to offer a comprehensive solution, not just a product.

Solution Selling

On-premise CRM

An on-premise CRM is a system hosted on a company's own servers, offering complete control over data, security, and system maintenance.

On-premise CRM

Call Disposition

Call disposition is the process of labeling the outcome of a call. It helps sales teams track interactions and plan their next steps effectively.

Call Disposition

Day Sales Outstanding

Day Sales Outstanding (DSO) is a financial ratio that shows the average number of days it takes for a company to receive payment for a sale.

Day Sales Outstanding

Customer Segmentation

Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.

Customer Segmentation

Incident Response

Incident response is an organization's systematic approach to managing and mitigating the aftermath of a security breach or cyberattack.

Incident Response

Mobile Compatibility

Mobile compatibility ensures your site or app works flawlessly on mobile devices, like smartphones and tablets, for a seamless user experience.

Mobile Compatibility

User Testing

User testing involves observing real users interact with a product to identify usability issues and improve the overall user experience.

User Testing

Platform as a Service

Platform as a Service (PaaS) is a cloud model where a provider delivers a platform for users to develop, run, and manage applications online.

Platform as a Service

Loss Aversion

Loss aversion is our tendency to feel the sting of a loss more acutely than the pleasure of an equivalent gain.

Loss Aversion

Quality Assurance

Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.

Quality Assurance

Application Programming Interface Security

API security is the practice of protecting application programming interfaces from attacks, preventing data breaches and unauthorized access.

Application Programming Interface Security

Personalization

Personalization is the practice of using data to tailor products, services, or content to an individual's specific needs and preferences.

Personalization

B2B Sales Process

Learn about B2B sales process, including key components of B2B sales processes, & crafting an effective B2B sales strategy.

B2B Sales Process

Buyer’s Remorse

Buyer’s remorse is the sense of regret or anxiety that can arise after making a purchase, often questioning if it was the right decision.

Buyer’s Remorse

Inbound leads

Inbound leads are potential customers who proactively reach out after finding your business through content, social media, or search.

Inbound leads

Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

Firewall

Payment Gateways

A payment gateway is a service that authorizes and processes payments for businesses, acting as a secure link between the customer and the merchant.

Payment Gateways

Kanban

Kanban is a visual project management method that uses a board to visualize workflow, limit work-in-progress, and maximize team efficiency.

Kanban

LPI

LPI, or Lead Per Inquiry, is a key metric that measures how many leads are generated from each inquiry in a marketing campaign.

LPI

Competitive Advantage

A competitive advantage is a unique edge that allows a business to produce goods or services better or more cheaply than its rivals.

Competitive Advantage

Application Programming Interface

An Application Programming Interface (API) is a set of rules that lets different software applications talk to each other and share information.

Application Programming Interface

Time on Site

Time on site, or session duration, is a key web metric that tracks the total time a visitor spends on your website during a single visit.

Time on Site

Net Revenue Retention (NRR)

Net Revenue Retention (NRR) is the percentage of recurring revenue kept from existing customers, including upsells, downgrades, and churn.

Net Revenue Retention (NRR)

Territory Management

Territory management is the process of segmenting customers into groups by geography or other factors to optimize sales efforts and resources.

Territory Management

Brand Loyalty

Learn about brand loyalty, including how to build brand loyalty, benefits of brand loyalty, measuring brand loyalty, & strategies for increasing loyalty.

Brand Loyalty

Demand

Demand is the economic principle describing a consumer's desire and willingness to purchase a specific good or service at a particular price.

Demand

Sales Enablement Content

Sales enablement content refers to the materials and tools that empower your sales team to engage prospects and close deals more efficiently.

Sales Enablement Content

Channel Partners

Channel partners are third-party firms that help market and sell a company's products or services, acting as an indirect sales force.

Channel Partners

Social Selling

Social selling is the art of using social media to find, connect with, build relationships with, and nurture sales prospects.

Social Selling

Target Account List

A Target Account List (TAL) is a focused list of high-value companies that a business specifically aims to convert into customers.

Target Account List

Version Control Systems

A version control system (VCS) tracks changes to files over time, allowing you to recall specific versions and collaborate without conflicts.

Version Control Systems

Conversion Path

A conversion path is the journey a visitor takes to complete a desired goal, such as making a purchase, filling out a form, or subscribing.

Conversion Path

Sales Quota

A sales quota is a time-bound sales goal for a rep or team, measured in revenue or units sold, to be met within a specific period.

Sales Quota

Buying Criteria

Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.

Buying Criteria

C-Level or C-Suite

The C-suite, or C-level, refers to a company's most senior executives. Their titles usually start with 'Chief,' such as CEO, CFO, or CTO.

C-Level or C-Suite

Buyer Journey

The buyer journey maps the path a potential customer takes, from first learning about a product to the final decision to buy.

Buyer Journey

Branded Keywords

Learn about branded keywords, including identifying your branded keywords, & strategies for optimizing branded keywords.

Branded Keywords

Digital Advertising

Digital advertising is the practice of delivering promotional content to users through various online and digital channels like social media or search engines.

Digital Advertising

Site Retargeting

Site retargeting is a marketing strategy that shows ads to people who have previously visited your website but left without converting.

Site Retargeting

Expansion Revenue

Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.

Expansion Revenue

Firmographic Data

Firmographic data is information used to classify firms. It includes attributes like industry, employee count, location, and annual revenue.

Firmographic Data

Commission

A commission is a service charge paid to an agent for a transaction. It's typically a percentage of the sale, rewarding performance directly.

Commission

Lead List

A lead list is a curated database of potential customers (leads) with contact information and other key data for sales and marketing outreach.

Lead List

Firmographics

Firmographics are descriptive attributes of organizations, used to segment companies by characteristics like industry, size, and location.

Firmographics

Upsell

Upselling is a sales tactic encouraging customers to purchase a higher-end version of a product or related add-ons to boost revenue.

Upsell

Business Continuity

Learn about business continuity, including understanding key components, steps to ensure continuity, common challenges, & best practices.

Business Continuity

Account Management

Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.

Account Management

Single Page Applications

A Single Page Application (SPA) is a web app that interacts with the user by dynamically rewriting the current page rather than loading new pages.

Single Page Applications

SPIN Selling

SPIN selling is a sales technique using a sequence of questions—Situation, Problem, Implication, Need-Payoff—to uncover a buyer's needs.

SPIN Selling

Customer Success

Customer Success is a business strategy focused on proactively helping customers achieve their goals with your product or service.

Customer Success

Lead Conversion

Lead conversion is the process of turning a prospect into a customer by getting them to complete a desired action, such as making a purchase.

Lead Conversion

Jobs to Be Done Framework

The Jobs to Be Done (JTBD) framework focuses on understanding customer needs by identifying the specific 'job' they are trying to accomplish.

Jobs to Be Done Framework

Bounce Rate

Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.

Bounce Rate

Account Executive

An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.

Account Executive

B2B Leads

Learn about B2B leads, including identifying quality B2B leads, generating B2B leads effectively, & B2B leads vs. B2C leads: understanding the differences.

B2B Leads

Omnichannel Marketing

Omnichannel marketing creates a seamless, unified customer experience by integrating a company's various communication and sales channels.

Omnichannel Marketing

B2B Data Erosion

Learn about B2B data erosion, including causes of B2B data decay, strategies to combat data erosion, & measuring the impact of data erosion.

B2B Data Erosion

Lead Response Time

Lead response time is the duration between a potential customer showing interest and your team's first point of contact with them.

Lead Response Time

AI Data Enrichment

AI data enrichment uses artificial intelligence to automatically enhance and update raw data, making it more complete, accurate, and valuable.

AI Data Enrichment

Product-Led Growth

Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.

Product-Led Growth

Outbound Sales

Outbound sales is when reps proactively contact potential customers through cold calls or emails to generate leads and build a sales pipeline.

Outbound Sales

Lightning Components

Lightning Components is a UI framework for building dynamic web apps for mobile and desktop devices on the Salesforce Lightning Platform.

Lightning Components

Marketing Qualified Lead (MQL)

A Marketing Qualified Lead (MQL) is a prospect who has shown interest based on marketing efforts but isn't yet ready for a sales conversation.

Marketing Qualified Lead (MQL)

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

Channel Marketing

Regression Testing

Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.

Regression Testing

Data Encryption

Data encryption translates data into another form, or code, so that only people with access to a secret key or password can read it.

Data Encryption

Average Revenue per Account

Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.

Average Revenue per Account

Lead Scoring Models

Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.

Lead Scoring Models

Inside Sales Rep

An inside sales rep sells products or services remotely from an office, using digital tools like phone and email to connect with customers.

Inside Sales Rep

Sales Pitch

A sales pitch is a persuasive presentation of a product or service, aimed at convincing a potential customer to make a purchase.

Sales Pitch

Data Cleansing

Data cleansing, or data scrubbing, is the process of detecting and correcting inaccurate records from a dataset to improve data quality.

Data Cleansing

Request for Proposal

A Request for Proposal (RFP) is a formal document that outlines a project's needs and invites qualified vendors to submit bids to complete it.

Request for Proposal

Lead Generation Funnel

A lead generation funnel is a systematic process that guides potential customers from initial awareness of your brand to becoming qualified leads.

Lead Generation Funnel

Fulfillment Logistics

Fulfillment logistics is the entire process of getting an order to a customer, from storing inventory to picking, packing, and final shipment.

Fulfillment Logistics

Adobe Analytics

Adobe Analytics is a leading web analytics solution for gaining real-time insights into user activity across websites and mobile applications.

Adobe Analytics

Email Deliverability

Email deliverability is the ability for your emails to successfully land in your recipients' inboxes instead of their spam folders.

Email Deliverability

Hard Sell

A hard sell is an aggressive sales technique that uses high-pressure tactics to push a customer into making an immediate purchase decision.

Hard Sell

Return on Marketing Investment

Return on Marketing Investment (ROMI) measures the revenue generated by a marketing campaign relative to the cost of that campaign.

Return on Marketing Investment

B2B Contact Base

Learn about B2B contact base, including building an effective B2B contact base, & strategies for expanding your contact base.

B2B Contact Base

Account Match Rate

Account match rate is the percentage of target accounts successfully identified and matched against a specific database or data provider.

Account Match Rate

Dark Social

Dark social is the sharing of content through private channels like messaging apps or email. This traffic is hard to track as it lacks referral data.

Dark Social

Business-to-Business (B2B)

Learn about B2B, including what is it, its key elements, the benefits of B2B partnerships, the differences between B2B and B2C, and strategies for effective marketing.

Business-to-Business (B2B)

Functional Testing

Functional testing verifies that software performs its intended functions as specified in the requirements, ensuring it works as users expect.

Functional Testing

Marketing Play

A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.

Marketing Play

Nurture Campaign

A nurture campaign is a series of automated messages designed to build relationships with potential customers and guide them toward a purchase.

Nurture Campaign

Retargeting Marketing

Retargeting marketing is a digital advertising strategy that targets users who have previously interacted with your website or brand online.

Retargeting Marketing

InMail Messages

LinkedIn InMail messages are a premium feature that lets you directly message any LinkedIn member, even if you're not connected to them.

InMail Messages

Lead Nurturing

Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.

Lead Nurturing

Account

An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.

Account

Warm Calling

Warm calling is contacting prospects with a prior connection, like a referral or social media interaction, to make your outreach more relevant.

Warm Calling

Data Privacy

Data privacy is an individual's right to control their personal information, including how it's collected, processed, stored, and shared.

Data Privacy

Target Buying Stage

The Target Buying Stage identifies a prospect's position in the buying journey, from initial awareness to the final decision to purchase.

Target Buying Stage

Dynamic Pricing

Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.

Dynamic Pricing

Trusted Advisor

A trusted advisor is an expert who builds a deep client relationship by consistently prioritizing their best interests over any single transaction.

Trusted Advisor

Accounts Payable

Accounts Payable (AP) is the money a company owes its suppliers for goods or services bought on credit. It's listed as a current liability.

Accounts Payable

Generic Keywords

Generic keywords are broad search terms that lack specific details like brand or location. They attract a wide audience with less specific intent.

Generic Keywords

Analytical CRM

Analytical CRM analyzes customer data to uncover actionable insights, helping businesses make smarter decisions and improve customer interactions.

Analytical CRM

Marketing Analytics

Marketing analytics involves measuring and analyzing marketing data to understand campaign performance and improve return on investment (ROI).

Marketing Analytics

Total Audience Measurement

Total Audience Measurement (TAM) provides a holistic view of content consumption, tracking viewership across all platforms and devices.

Total Audience Measurement