Understanding Sales Velocity
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. Let’s discuss the sales velocity benefits in detail.
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.
The four metrics and equation are as below –
How Sales CRM from HappSales will help you improve sales velocity
Using Sales CRM from HappSales, you can easily measure and improve sales velocity benefits.
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.
Understanding the Core Sales Velocity Benefits
Here are some of the benefits of measuring and improving sales velocity diligently through our CRM:
- Accurate Sales Forecasting:
You can forecast your future sales accurately and know if you are on the right path to meet your goals.
- Better Sales Performance
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
- Reduce Inventory Cost:
You can optimize your inventory levels and reduce your inventory cost due to better visibility into sales trends
- Alignment between Sales and Marketing:
Sales velocity depends on the quality of leads and the lead qualification process, which have a direct impact on your deal conversions and sales cycle. Appreciating the benefits of sales velocity, this metric aligns both departments to take the necessary steps to improve these factors.
- Manage Sales Pipeline Efficiently
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.
- Improved Decision Making:
Actionable insights will enable you can take informed decisions on marketing, promotions, sales reviews, account mapping strategy, staffing, budgets, etc. to improve business performance.
- Identity Trends and Bottlenecks:
By incorporating sales velocity benefits into your strategy with HappSales CRM, 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.
- Drive Accountability
Tracking sales velocity will give you the right data points to hold your teams accountable for their performance.
Sales velocity is a measure of how efficiently a company converts leads into revenue. Organizations can use this indicator to identify weaknesses along their sales process and develop strategies that can raise win rates, deal size, and sales cycle speed. Sales velocity is an essential metric in strategic sales management.
Additionally, when businesses comprehend the concept behind sales velocity reporting can be more accurate on forecasted revenue since they will allocate resources efficiently. Sales managers are encouraged to take a data-driven approach so that efforts could be spent where they would make the most difference. In conclusion, increasing sales velocity equips a business with the agility it needs to react faster to market conditions and capture emerging opportunities promptly.
Improve your sales velocity today to transform your business.
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