Sales Velocity

Sales velocity is the speed at which you bring in money. The formula: (number of opportunities × average deal value × win percentage) / sales cycle length in days. The number that comes out is your daily revenue. If your sales velocity is €5,000, you earn an average of €5,000 per day through your sales process. This number is gold because it combines four things: volume, value, quality and speed. You can increase sales velocity in four ways: generate more opportunities, ask higher deal value, convert better, or close faster. The beauty is that small improvements across multiple areas have an enormous effect. If you get 10% more opportunities, ask 10% higher deal value, convert 10% better and close 10% faster, your sales velocity increases by 46%. Many teams focus only on more leads, but forget that speed and conversion are just as important. You measure sales velocity per team, per product, or per salesperson. This way you see exactly where your improvement potential lies.