Reporting · 1 min read
Sales Velocity
Sales velocity shows how fast your pipeline turns into revenue. It combines how much you sell with how long deals take to close.
How it's calculated
Sales velocity = total value of won deals ÷ average sales cycle (in days)
The sales cycle is the time from when an opportunity is created to when it's marked won.
Example
Three opportunities are won in one week:
- Deal A: $3,000, took 6 days
- Deal B: $4,500, took 9 days
- Deal C: $1,500, took 12 days
Total value is $9,000. Total time is 27 days, so the average sales cycle is 27 ÷ 3 = 9 days.
Sales velocity is $9,000 ÷ 9 = $1,000 per day.
Why it matters
Revenue alone doesn't show how efficient your process is. Velocity does. You can raise it by:
- Closing deals faster, for example with quicker follow-up and fewer steps
- Raising deal value, for example with upsells or bundles
- Winning more of the deals you work
Track it over time and compare pipelines or team members to see what's working.