You can also segment out your audience to measure velocity across specific audience segments (such as industry rather than company size). You can monitor cohorts for changes in sales velocity over time to measure the impact of product updates or pricing changes. small business, mid-market, enterprise) for a more accurate picture of how quickly deals are moving in different market segments. With this formula, you’re working with a sales velocity of $2,500 in potential revenue per day.Īt Terminus, our finance team will measure sales velocity across various segments (e.g. Your average sale takes 2 months (60 days) to close. Let’s say you get an average of 100 new opportunities a month with an average deal size of $10,000 at a 15% conversion rate (conversion = new customer). Use this formula to calculate sales velocity: How much value new customers provide over a given period.Total time spent in each opportunity stage.Total time spent from opportunity creation to close date.There are a few ways to measure sales velocity (sometimes referred to as pipeline velocity): By understanding how quickly accounts move through your funnel, you can more effectively forecast, make revenue projections, and optimize your sales process.
