What is Sales Velocity?
Sales Velocity measures how quickly deals move through your pipeline and generate revenue. It's calculated using the formula: (Number of Opportunities × Average Deal Size × Win Rate) ÷ Sales Cycle Length. It helps evaluate the efficiency of your sales process.
Table of Contents
Full Definition
High sales velocity indicates a fast-moving pipeline and efficient sales operations.
It highlights areas where bottlenecks may exist and where improvements can accelerate revenue generation.
Sales velocity is a critical KPI for growth-focused sales teams.
Examples
Measures pipeline efficiency
Identifies bottlenecks
Supports revenue acceleration
Benefits
Can be affected by inaccurate data
May overlook deal quality if focused only on speed
Needs balanced with other metrics
Common Mistakes
Optimize sales cycle and win rates to improve velocity.
Conclusion
Optimize sales cycle and win rates to improve velocity.