Sales Velocity

Revenue generation efficiency indicators.

Business questions

This template addresses the following:

What segments, regions or reps are most and least efficient in generating revenue?
Is our sales velocity increasing or decreasing over time?
How much revenue are we generating per day on average?
How much revenue is each deal generating every day?

Included Metrics (6)

Sales Velocity

The revenue generated per day by evaluating the value of closed-won opportunities relative to the average time to close won.

Deal Velocity

The average sales price divided by the average time to close won opportunities, yields a number representing the day value assigned to each won deal. This number reflects the average revenue a sales representative consistently closes within a specific time frame.

Deal Velocity Ratio

The Deal Velocity devided by an average day expected value (e.g., $1000 USD), where a positive number equal to or greater than 1 serves as an indicator of a well-aligned and efficient sales motion.

Bookings

The value of closed-won opportunities during the period.

Average Sales Price

The average value of closed-won opportunities (Bookings) during the period.

Average Sales Cycle Length

The average duration in days it takes to close an opportunity for all opportunities closed during the period.

Template description

This template serves as a powerful resource for businesses seeking to optimize revenue generation strategies. By integrating the Sales Velocity and Deal Velocity Ratio metrics, it offers a comprehensive view of both sales team performance and deal efficiency. It enables businesses to understand how effectively deals are being closed and revenue is being generated, leading to informed decisions for growth.

Tags:

Sales

Pipeline Analysis

Pipeline Management

SalesOps