Sales Velocity (Sales Process Speed)
A metric measuring how quickly deals move through your sales pipeline and generate revenue.
Definition
Sales velocity measures the speed at which your sales team converts opportunities into revenue. It's calculated by multiplying number of opportunities, average deal value, and win rate, then dividing by sales cycle length. This metric helps identify bottlenecks and optimize revenue generation.
Formula
Sales Velocity = (# of Opportunities × Average Deal Value × Win Rate) ÷ Sales Cycle Length
Example
SaaS Startup: 50 opportunities, $10K average deal, 25% win rate, 90-day cycle = (50 × $10K × 25%) ÷ 90 = $125K ÷ 90 = $1,389 revenue per day