Average opportunity or deal size (or average contract value) is one of the top three metrics that can drive your organization’s sales results.
Coupled with win ratio and sales cycle, these three metrics are the first step in building your demand waterfall, and a plan for the resources and support needed to support your sales goals.
I’ve found that organizations often look at average deal size intermittently, or once per year. Imagine if you want to lose weight. Would you weigh yourself once a quarter or once per year? Of course not.
I believe that average deal size should be measured monthly during your plan year and also compared to a rolling twelve months. By diagnosing the variations in this metric, you’ll find where your sales and/or marketing sales execution gaps or successes reside.