Sales velocity defines the amount of time it takes for a new lead to complete as a closed deal. Sounds easy when you put it that way, doesn’t it? When I first researched the details of the sales velocity equation, the concept irritated me. The thought of reducing a time consuming, hard-earned sale to a simple math equation completely frustrated me. After all, there are many soft skills that contribute to a successfully closed deal as well. Here’s the equation: However, the more I think about it though, it actually makes perfect sense. Still not onboard yet? Let’s break it down.
The factorsThere are four areas that contribute to a teams’ sales velocity. These include:
- (A) The number of sales opportunities
- (B) The average deal value
- (C) Your win rate
- (D) The length of the sales cycle