Sales Velocity
A metric measuring how quickly deals move through the pipeline and generate revenue.
Sales Velocity measures how fast your sales team generates revenue.
**Sales Velocity Formula:**
(Number of Opportunities × Average Deal Value × Win Rate) ÷ Sales Cycle Length
**Example:**
(100 opportunities × $50K × 25% win rate) ÷ 90 days = $13,889/day
**Improving Sales Velocity:**
• **More Opportunities**: Better prospecting and marketing • **Larger Deals**: Upselling, better qualification • **Higher Win Rate**: Better sales process, competitive positioning • **Shorter Cycles**: Streamlined process, buying group engagement
**Using Sales Velocity:**
• Compare team and rep performance • Identify bottlenecks in sales process • Forecast revenue more accurately • Measure impact of GTM changes • Set realistic quotas
**Velocity by Segment:**
• Track separately for SMB, mid-market, enterprise • Different benchmarks per segment • Identify segment-specific improvements
Related Terms
Win Rate
The percentage of qualified opportunities that result in closed-won deals.
Pipeline Generation
Activities focused on creating and advancing opportunities through the sales pipeline toward closed revenue.
Sales Qualified Lead (SQL)
A lead that has been vetted by sales and determined to be ready for direct sales engagement.