Importance of Sales Velocity Management
Sales Velocity is a measure of the rate at which your deals move through your sales pipeline. It is the only metric that indicates both the value and time aspects of a deal.
It is a key performance indicator (KPI) to measure the effectiveness of sales and marketing efforts. It helps you to make informed decisions to improve and align your team’s efforts to achieve your business goals. A sales velocity equation uses four key metrics to depict the average revenue generated in a day.
Sales Velocity = (No. of Opportunities x Avg. Deal Value x Deal Win-Rate) / Length of Sales Cycle in Day
Capabilities & Features
Using Sales CRM from HappSales, you can easily measure and improve sales velocity.
Once your team enters the information about their deals with respect to deal value and deal progress, our CRM will use the data points to automatically calculate sales velocity over a period of time. We call this the sales velocity curve.
Analysis of the sales velocity curve will provide you with actionable insights for better control over your business.
Sales Velocity Calculator
You can use the sales velocity calculator to calculate your current sales velocity, and also see how you can use these four levers to influence it – no. of opportunities, average deal value, win-rate percentage, and length of sales cycle in days
Benefits of using HappSales CRM
Here are some of the benefits of measuring and improving sales velocity diligently through our CRM:
You can forecast your future sales accurately and know if you are on the right path to meet your goals
You will be able to closely monitor your sales team’s performance, identify areas for improvement, and then give them the required guidance to improve their performance
You can optimize your inventory levels and reduce your inventory cost due to better visibility into sales trends
Sales velocity depends on the quality of leads and the lead qualification process that has a direct impact on your deal conversions and sales cycle. This metric aligns both departments to take the necessary steps to improve these factors.
Our Sales CRM will give you visibility into your sales pipeline, weighted pipeline, deal stages, deal value, closure probability, etc. You can closely monitor your sales pipeline and take the necessary steps to manage them better.
Actionable insights will enable you to make informed decisions on marketing, promotions, sales reviews, account mapping strategy, staffing, budgets, etc. to improve business performance.
You will be able to analyze the business trends and identify the bottlenecks early on. You can take the necessary steps and fix the gaps before it is too late. These gaps could be in your sales process, lead qualification, internal approval process, deal nurturing, solution fitment etc.
Tracking sales velocity will give you the right data points to hold your teams accountable for their performance.
Improve your sales velocity today to transform your business.