Free Customer Success Tool - Customer Success Metric Metric: New Sales Closed (Closed-Won Deals)

Why "Closed-Won Deals" Matter

1. Revenue Growth

• New sales contribute directly to your Monthly Recurring Revenue (MRR) or Annual Recurring Revenue (ARR), fueling company growth.

2. Customer Pipeline Replenishment

• Closed-won deals bring new customers into the fold, creating opportunities for onboarding, retention, and eventual expansion.

3. Business Health Indicator

• The volume and value of new deals provide insight into the effectiveness of sales and marketing strategies.

4. Customer Success Handoff

• Marks the starting point for customer success teams to begin onboarding and ensuring long-term value delivery.

Key Metrics Related to Closed-Won Deals

1. Close Rate

• Percentage of opportunities that successfully convert into closed-won deals.

2. Average Deal Size

• Average revenue generated per closed deal.

3. Sales Cycle Length

• Average time it takes to convert a lead into a closed-won deal.

4. New MRR or ARR

• Revenue generated from newly closed deals.

5. Lead Conversion Rate

• Percentage of leads that progress through the funnel to become closed-won customers.

Customer Success Perspective on Closed-Won Deals

1. Seamless Handoff

• Closed-won deals initiate the transition from sales to customer success. A smooth handoff ensures the new customer has a positive onboarding experience.

2. Onboarding Readiness

• Customer success teams prepare for onboarding based on information gathered during the sales process, such as use cases, goals, and expectations.

3. Proactive Engagement

• Begin building relationships early to set the foundation for long-term success and retention.

4. Data Utilization

• Use details from closed-won deals (e.g., products purchased, contract terms) to personalize the onboarding and success plans.

How SaaS Companies Optimize Closed-Won Deals

1. Effective Lead Qualification

• Use tools like lead scoring to focus on prospects most likely to convert.

2. Shortened Sales Cycle

• Simplify decision-making with clear pricing, demos, and success stories.

3. Sales-Customer Success Collaboration

• Align teams to ensure that promises made during sales are delivered post-sale.

4. Data-Driven Decisions

• Analyze patterns in closed-won deals to refine sales strategies and identify trends.

5. Clear Value Proposition

• Emphasize the product's ROI and outcomes during the sales process.

Tools for Tracking Closed-Won Deals

• CRM Platforms: Salesforce, HubSpot, Pipedrive.
• Analytics Tools: Tableau, Looker, or Power BI.
• Sales Automation: Outreach, Gong.io, or Salesloft for deal progression insights.

Conclusion

"Closed-Won Deals" is a cornerstone metric in SaaS, representing the culmination of the sales process and the beginning of the customer journey. For customer success teams, it signals the start of delivering on promises made during sales and ensuring customers achieve their desired outcomes. Tracking and optimizing closed-won deals is crucial for driving revenue, enhancing customer satisfaction, and achieving sustainable growth.