February State of Sales
Sales rebounded in February, despite a continued decrease in the number of deals. This surge was fueled by a significant rise in deal sizes, marking a sharp recovery from a stagnant January.
In February, sales experienced a notable rebound, primarily driven by an increase in deal sizes rather than the number of deals, signaling a robust recovery from a stagnant January. This surge saw total sales from new business rise by 51% month-over-month and 24% year-over-year, a significant uplift from January's low base.
Deal sizes in February expanded impressively, now 30% above the 2024 average and 50% higher than same month previous year. This growth prompts the question: are we witnessing the emergence of a sustainable upward trend?
Despite these positive developments in sales and deal sizes, the commission payout structure remains conservative. Total commission payouts in Q4 accounted for 6.6% of sales value, influenced by the year-end payouts in December, typically higher than other quarters.
However, a point of concern is the declining win rates, a metric that remains somewhat unreliable within Revelate's data sources. The practice of pushing out rather than marking deals as lost skews the accuracy of this data, but their is a clear trend which is difficult to neglect.
This data suggests a complex landscape where larger deal sizes are compensating for fewer closed deals, indicating a shift in sales strategy or market dynamics. As businesses navigate this terrain, understanding the nuances behind these numbers will be crucial for adjusting strategies and maintaining growth.
Customer retention is the key
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What are the most relevant factors to consider?
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Don’t overspend on growth marketing without good retention rates
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What’s the ideal customer retention rate?
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Next steps to increase your customer retention
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Emil Wargelius
With over 10 years of experience in leading roles in product development and sales, he has designed and launched multiple commission models.
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