Sales Velocity Calculator
What is Sales Velocity and why you should measure it?
Sales Velocity is the only sales metric that reveals the most about your revenue growth and time. It measures the speed at which your deals move through your sales pipeline, in other words, the average revenue generated in a day.
It is imperative for sales teams to understand the calculation of sales velocity number and critically analyze their sales process on an ongoing basis.
How is Sales Velocity calculated?
It is calculated using the four most important variables in sales –
- Number of Sales Opportunities (O)
- Average Deal Size or Average Deal Value (V)
- Deal Win rate Percentage (R)
- Length of the Sales Cycle in Days (L)
Sales Velocity, SV = Number of Sales Opportunities x Average Deal Value x Win Rate / Length of Sales Cycle
SV = O x V x R / L
When you study the Sales Velocity equation, you will appreciate that high quality leads will have a direct impact on your win rate and sales cycle. When your sales reps work only on qualified leads, you can expect to improve your win rate.
You can use the below Sales Velocity Calculator to see how a small improvement in the four levers can significantly increase your sales velocity.
Calculate your Sales Velocity
Current Sales Velocity
Improved Sales Velocity
HappSales Solution provides a sales velocity curve to help you improve these metrics.