Travel & Entertainment Cost per Deal Closed
Average field sales T&E spend attributed per closed deal
What is Travel & Entertainment Cost per Deal Closed?
Travel and entertainment cost per deal closed is the average field sales travel and entertainment spend for each deal won. It shows how much it costs to win business face to face.
Controlling it helps protect margin, especially where deals are small.
How this KPI is measured
- Function
- Sales
- Sub-function
- Field Sales
- Industry
- All Industries
- Type
- Lagging
- Impact
- Financial control
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total field sales T&E spend / Number of deals closed
How to calculate it
Divide total field sales travel and entertainment spend by the number of deals closed.
For example, if a team spent 120,000 and closed 60 deals, the cost per deal is 2,000.
Compare with average deal size and gross margin to judge whether the level of spend makes sense.
Where it is used
Controlling costs
Keep selling costs in proportion to deal value.
Choosing selling methods
Decide when a video call will do.
Budgeting
Plan travel budgets from deals.
How to improve it
Tips and common mistakes
- Do not cut so far that relationships suffer.
- Compare with deal size, not in isolation.
- Follow company policy and any anti-bribery rules on entertainment.
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