What does "closing ratio" refer to in sales?

The closing ratio is a key metric in sales that indicates the effectiveness of a salesperson in converting leads or opportunities into actual sales. Specifically, it refers to the percentage of successful sales transactions in relation to the total opportunities or prospects pursued. This metric helps sales professionals assess their performance and efficiency, allowing them to understand how well they are closing deals.

A high closing ratio suggests a strong ability to connect with customers and effectively address their needs, leading to more successful transactions. Conversely, a low closing ratio may indicate areas for improvement in sales techniques or customer engagement strategies.

The other options do not accurately represent what closing ratio means. For instance, the ratio of leads generated to total sales pertains more to overall marketing effectiveness than to individual sales performance. The number of follow-up calls made is more about the process of sales outreach rather than the success rate in closing. Lastly, the proportion of customer complaints resolved focuses on customer service, which is separate from the concept of closing sales opportunities.