Average deal size
Also called Average won amount, Average order value.
What a won deal is typically worth, the other half of a lead's value. Close rate times average deal size is what a lead of that kind was worth.
Why it matters
Leads that close at the same rate can be worth very different amounts. An enterprise lead and a small-business lead may both close one time in five, and one deal may be ten times the other.
What goes wrong
One very large deal can distort an average. A single contract worth fifty ordinary ones makes a small group look like the best leads in the business, and bidding then chases whatever that one buyer happened to have in common with others. That is why very large deals are counted at a cap rather than at face value.
Missing amounts matter too. A won deal with no amount recorded cannot be counted toward deal size, and it should be left out rather than guessed.
What this product does about it
Deal size is the average of your own won amounts, with any deal above five times the median counted at that level, and won deals with no amount left out of it.
How to check it on your own account
Look at your largest won deals from last year. If one or two are many times the rest, your average is theirs, not your typical customer's.
Next to this
Where this comes up
- Value-Based Bidding for Lead Generation - The Complete GuideA lower cost per lead looks good in a report. It means much less if those leads never become customers. How to estimate what a lead is worth, send it to Google Ads, and check whether the bids brought better business.
- Google Ads Value-Based Bidding Migration Guide: What to Expect When You SwitchA staged migration, in Google's own order. What resets the learning period, why it is measured in conversions and not days, and when you can honestly read the result.
- Journey-Aware Bidding: Google's Lead-Gen Bidding Upgrade, and What It Does Not DoJourney-aware bidding is an upgrade to Smart Bidding, not a new strategy. Target CPA campaigns learn from every stage between a form fill and a sale. What changes for lead-gen advertisers, what does not, and what to prepare.
How it applies in your trade
The same method, worked through for each kind of business: what a lead is worth, what is known on arrival and what to prepare.
The rest of this step
- Day-0 value
- Close rate
- Expected value per lead
- Cohort
- Multiplier
- Value cap
- Profit on ad spend (POAS)
- Value spread
- Sample size confidence
- Flat feed
- Early gate
- Lead scoring vs lead valuation
- Propensity modelling
- Predicted lifetime value
- Conversion value rules
- New customer acquisition goal
- Conversion adjustments
- Recalibration
- Model drift
Measure this on your own data
The diagnostic reads a CRM export in your browser and reports your volume, your match rate and the spread between your leads against the thresholds in this glossary. Nothing is uploaded and no account is needed.