What is Sales Velocity?
Sales velocity measures how quickly a company generates revenue, calculated as (Number of Opportunities × Average Deal Size × Win Rate) ÷ Sales Cycle Length.
How do you calculate sales velocity?
Sales velocity measures how fast you generate revenue. The formula is: (Number of opportunities x Average deal value x Win rate) / Average sales cycle length in days. A higher sales velocity means your team converts pipeline into revenue faster. CROs use this metric to identify bottlenecks and forecast revenue more accurately.
Sales velocity is the metric that tells you how fast money moves through your pipeline. It combines four pipeline variables into a single number that represents daily revenue generation capacity.
Sales Velocity Formula
Sales Velocity = (Number of Opportunities × Average Deal Size × Win Rate) ÷ Sales Cycle Length in Days. For example, if you have 100 opportunities, $50K average deal size, 25% win rate, and 90-day cycle: (100 × $50K × 0.25) ÷ 90 = $13,889 per day.
How to Improve Sales Velocity
You can improve sales velocity by pulling four levers: increase the number of qualified opportunities (better prospecting and marketing), increase average deal size (upselling and multi-threading), improve win rate (better qualification and sales methodology), or shorten the sales cycle (faster decision-making and procurement processes).
Why CROs Track Sales Velocity
Sales velocity is a leading indicator of revenue performance. Unlike quota attainment (which is lagging), sales velocity tells you whether your pipeline is healthy and accelerating before the quarter closes. CROs use it to forecast, identify bottlenecks, and compare team performance.
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