What is Stage Win Rate?

Stage Win Rate is a percentage that estimates how much of the ARR in a particular stage of a sales pipeline is expected to be Closed Won. Typically, Stage Win Rate will be lower in earlier stages of the sales process, and higher in later stages of the sales process. While CRMs often have presets for win rates for each stage, understanding the calculation can help you improve your metrics reporting and sales flow.

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How should I calculate my Stage Win Rate?

While Stage Conversion Rates track conversion from one stage to later stages, Stage Win Rates track conversion from one stage to a Closed Won stage.

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For any stage, Stage Win Rate is the following:

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For example, the Stage Win Rate for Stage 2 would be the number of deals that are Closed Won divided by the number of total deals that advanced to Stage 2. If there are 16 Closed Won deals, and 40 deals that advanced to Stage 2, then the Stage Win Rate for Stage 2 is 16/40, or 40%.

Note that the Stage Win Rate will only show deals that were ever in a particular stage (i.e. deals that skip stages will not be factored into the Stage Win Rate). For deals that return to a previous stage, or deals that are changed from Closed Won or Closed Lost to an active stage, SaaSGrid will simplify the deal history and report the most “recent” stage history.

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SaaSGrid takes deal histories from your CRM and converts them in the following ways:

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Let’s assume we have the following stages and stage win rates:

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These stage win rates (coming from your CRM system) indicate that deals that advance to Stage 1 are 25% likely to be Closed Won, deals that advance to Stage 2 are 40% likely to be Closed Won, and deals that advance to Stage 3 are 65% likely to be Closed Won. While your CRM may have static presets for these values, SaaSGrid lets you see what your win rates actually are over time. Note that for calculation purposes, Closed Won has a Stage Win Rate of 100%, and Closed Lost has a Stage Win Rate of 0%. SaaSGrid omits these categories and only shows active deals.

SaaSGrid can show historical win rates by stage over time. This visualization can show stage performance over time and help you identify bottlenecks in your sales process.

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Getting the right Stage Win Rate by stage is critical to ensuring that your weighted pipeline value is a reliable predictor of Closed Won ARR. SaaSGrid allows you to track conversion rates by stage to see how your business is converting prospects to customers at each stage of your sales process. Get insights into where your business is winning and keep an eye on metrics at every step of the sales process with SaaSGrid's pipeline tool. Talk to us here to learn more!