Are You Tracking Your Sales Pipeline for Velocity?

Wondering how your sales pipeline velocity is influencing your end-of-quarter figures? Because many sales managers aren’t.

But a recent post from the Inbound Sales Network notes that pipeline velocity is an excellent tool for predicting sales productivity over the course of a sales cycle. When analyzing pipeline velocity, manipulating the equation can lead to some surprising findings.

The article explains that velocity can be calculated by multiplying the number of qualified leads going into the funnel, by the close rate percentage and the average size of the deal. Then divide that figure by the length of the sales cycle.

As an example, try calculating with the following rounded figures: a 100 qualified leads; a 33 percent close rate; a $100,000 average deal size; and a 50-day sales cycle. Crunching all of these figures will lead you to sales pipeline velocity of 66.

What’s intriguing about the sales velocity equation is that a 10 percent decrease in sales cycle length actually ups velocity more than a 10 percent increase in qualified leads. This should certainly provide a moment of pause for some. For more on tracking  sales pipeline velocity, read the full article at Inbound Sales Network.

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