What Is Deal Velocity?

The speed at which deals move through your sales pipeline from creation to close.

The speed at which deals move through your sales pipeline from creation to close.

Deal velocity (or sales velocity) measures how quickly revenue moves through your pipeline. It combines four factors: number of opportunities, average deal value, win rate, and sales cycle length.

Faster deal velocity means more predictable revenue and shorter time to ROI on sales investments. It's one of the best leading indicators of revenue performance.

To increase deal velocity, focus on improving any of the four components: generate more qualified opportunities, increase average deal sizes, improve win rates through better selling, or shorten the sales cycle through better qualification and buying process optimization.

Formula

Deal Velocity = (Opportunities × Average Deal Value × Win Rate) ÷ Sales Cycle Length

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