The average sales price of all your closed-won deals.
In the short run, this metric will make it easy for you to spot opportunities that fall outside the normal deal size and flag them as at-risk. Opportunities in your pipeline that are significantly larger (3x or greater) than your average deal size should be flagged because, typically, larger-than-average deals tend to have smaller win rates and longer sales cycles.
In the long run, average deal size over time will help you track when and by what margin you move up-market and begin winning bigger deals. If your average deal size increases significantly from your historical average, your pipeline may be changing. It is time to dig in to your lead generation efforts and figure out why you’re attracting larger deals.
A change in average deal size isn’t good or bad – it just means you need to dig into your historical data and pipeline generation efforts to figure out how (and whether) to react.