Definition
A composite measure of how much revenue moves through the pipeline per unit time, combining volume, size, win rate, and cycle length.
Formula
(Number of opportunities x Average deal size x Win rate) / Average sales cycle length
How to measure
Multiply the number of qualified opportunities, average deal size, and win rate, then divide by the average sales cycle length in days.
Why track it
Deal velocity isolates which lever, volume, size, win rate, or speed, is actually driving a change in bookings.
Example
A team's deal velocity rises after shortening the sales cycle even though deal count and size stayed flat.
FAQ
- What is Deal Velocity?
- A composite measure of how much revenue moves through the pipeline per unit time, combining volume, size, win rate, and cycle length.
- How do you calculate Deal Velocity?
- (Number of opportunities x Average deal size x Win rate) / Average sales cycle length
- Why track Deal Velocity?
- Deal velocity isolates which lever, volume, size, win rate, or speed, is actually driving a change in bookings.