Sales Velocity – Two-Minute Demo

Sales Velocity, if you're at all concerned with sales velocity, has got to be one of your top metrics. In short, sales velocity measures how quickly sales move through your pipeline to become successfully closed deals. Although that speed typically varies. One velocity for small opportunities, one for medium, and another for large, the calculation remains the same. Take the number of opportunities totaled by small, medium and large. Multiply this times the average deal value, multiply that total times your win rate, and then divide that total by the number of days in your sales cycle. Sales velocity is the best measure there is of the effectiveness of your sales organization. Whereas pipeline reports are often viewed with skepticism because they are filled with best guesses, a velocity report is based on historical fact based metrics and its results cannot only reveal a slow moving pipeline. It can also point an organization at where to focus future sales efforts. When you look at the components of sales velocity, there are three numbers you want to increase the number of sales here in red, the average deal value in orange, and the win rate in light blue. And there's just one number you want to decrease the average days to close shown in dark blue. The line charts at the lower left give you instant insight into whether you're meeting these objectives. You might notice if the trend lines are heading in the right or wrong direction. By default, this dashboard is looking at all years to focus on just one year, say 2030. You could select that over on the right. Lastly, at the top right, you can focus even more specifically on certain clients, such as repeat buyers, for whom you hope your velocity is ever improving. Or you can focus on specific sales reps to see who's excelling in various aspects of the sales velocity and leverage that success to enhance the performance of your entire sales team.