What Is Sales Velocity?

Sales velocity is the measurement of the pace of your deals moving through your pipeline. It can be measured stage-wise.  

Formula

Sales Velocity = Number of Opportunities x Deal Value x Win Rate/Length of Sales Cycle

How to Calculate Sales Velocity

Number of opportunities: The total number of potential deals or prospects in your sales pipeline. Increasing the number of high-quality opportunities directly impacts on your sales velocity by expanding the pool of potential deals.

Deal value: The average revenue that each closed deal brings to the business. Higher deal values can significantly boost sales velocity, as each successful sale contributes more to overall revenue.

Win rate: The percentage of deals that are successfully closed out of the total number of opportunities. A higher win rate indicates greater effectiveness in closing deals, enhancing sales velocity by converting more prospects into paying customers.

Length of sales cycle: The average time it takes to close a deal from initial contact to final sale. Shortening the sales cycle increases sales velocity by reducing the time needed to convert opportunities into revenue.