Does discounting improve sales efficiency?
Data: EMEA Teams; New Business Opportunities closed in FY2024;
Sales Efficiency
1.86x
●
Win rates drop from 24% to 12% as discounts increase from 0–5% to 21–30%. Deal size shrinks from $78K to $53K, eroding overall value. Sales cycles lengthen from 42 to 62 days, slowing down velocity. Sales efficiency falls by over 50%, from 1.86 to 0.85, showing that deeper discounts hurt performance.
Win Rate
24%
0.85x
●
12%
96d
●
Sales Cycle ACV
42d
●
$78K
$53K
Discount Range
*Sales efficiency = Win Rate * ACV / Sales Cycle
Data source:
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