monitoring your sales velocity helps you accurately track the time it takes for your team to close deals. This can reveal potential roadblocks in your sales process which can jeopardize sales targets.
If you find roadblocks, you can examine each phase of the customer journey to identify barriers and strategize ways to improve. You can also use sales velocity to monitor inventory, so you know exactly when to reorder, keeping internal processes running smoothly.
Knowing your sales velocity is an important part of accurate sales forecasting. If you know how fast your team is generating revenue, you’re in a better position to project future revenue, adjust your strategies, and afghanistan phone number list appropriately allocate resources. Used in tandem with revenue intelligence, sales velocity can uncover risks and opportunities in deals throughout the sales pipeline.
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how to calculate sales velocity
the equation for sales velocity takes these four variables into account: opportunities, average deal value, win rate, and the length of the sales cycle. If you’re using a crm like salesforce, these metrics are tracked automatically and are readily available.
To calculate sales velocity, multiply the number of sales opportunities by the average deal value and win rate. Then, divide that result by the length of the sales cycle. The sum represents the revenue you can expect to bring in throughout the sales cycle.