Sales Velocity
Definition
The speed at which revenue moves through your sales pipeline, calculated as: number of opportunities multiplied by average deal value multiplied by win rate, divided by sales cycle length in days.
Why it matters
Sales velocity is a composite metric that reveals exactly which lever to improve. You can increase velocity by increasing deal size, improving close rate, shortening the sales cycle, or generating more qualified opportunities.
Example
You have 20 active deals, average value £500, a 30% close rate, and a 45 day sales cycle. Velocity equals £67 revenue per day. Cutting the sales cycle to 30 days increases velocity to £100 per day with no other changes.
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