Hit rate is a metric or measure of business performance traditionally associated with
sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in ...
. It is defined as the number of sales of a product divided by the number of customers who go online, planned call, or visit a company to find out about the product.
Sales can be measured either as the sum of
dollars
Dollar is the name of more than 20 currencies. They include the Australian dollar, Brunei dollar, Canadian dollar, Hong Kong dollar, Jamaican dollar, Liberian dollar, Namibian dollar, New Taiwan dollar, New Zealand dollar, Singapore dollar, U ...
pursued or the number of deals pursued. Accurate calculation requires clear definition of when a sales opportunity is firm enough to be included in the metric, as well as firm disposition of the opportunity (i.e. the deal has reached a point where it is considered won, lost or abandoned).
The hit rate may be measured for the whole sales force or by sales region, sales person or product group. It may be used to benchmark the different sales periods and to
benchmark
Benchmark may refer to:
Business and economics
* Benchmarking, evaluating performance within organizations
* Benchmark price
* Benchmark (crude oil), oil-specific practices
Science and technology
* Benchmark (surveying), a point of known elevati ...
the effectiveness of the own sales force with other companies of the same sector.
Due to the high costs involved with making proposals, the hit rate is a very useful tool especially for companies in
industrial marketing
Industrial marketing (or business-to-business marketing) is the marketing of goods and services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw material. The term, ''industria ...
.
References
Sales
Rates
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