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Glossary

What is Hit Rate?

Hit rate is a metric of business performance associated with sales. It is the number of connected contacts as a percentage of the number of attempts. It is defined in terms of number of sales of a product divided by the number of customers who visit e-commerce website, call, or visit a company to find more about the product. Hit rate is used to describe success rate of an effort. Hit rates are easy to figure out. Take for instance, a call center agent makes around 30 calls every day and has more than 30 opportunities or prospects each day. The agents will likely sell out his product to a specific number of those prospects.

Hit rate is based on sales funnel measuring number of sales prospects that you have at different stages of sales pipeline. The sales hit ratio is the number of sales you make as a percentage of the number of prospects you have identified. It can be expressed in the following formula:

Number of sales/Number of prospects x 100

The higher the hit rate, the better is the sales person at making sales. The lower is the hit rate, the sales closed by the salesperson is also few. After knowing number of sales in your quota, you can easily determine number of qualified prospects that have in your pipeline. 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 the effectiveness of the own sales force with other companies of the same sector.

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