Sales

    Deal Velocity

    The speed at which deals move through the sales pipeline, measured as revenue generated per unit of time.

    Share

    Key Takeaways

    • Deal velocity = (Deals x Value x Win Rate) / Cycle Length. Improving any variable accelerates revenue.
    • The highest-leverage variable depends on your situation: early-stage companies should focus on more deals, mature companies on win rate.
    • CRM-tracked deal velocity by rep and segment reveals coaching opportunities and process improvements.

    Optimizing Each Velocity Component

    ComponentHow to ImproveImpact
    Number of dealsBetter lead gen, higher MQL volume, partner referralsLinear: 2x deals = 2x velocity
    Deal valueUpselling, multi-year contracts, bundlingLinear: 2x value = 2x velocity
    Win rateBetter qualification, sales training, competitive intelLinear: 2x rate = 2x velocity
    Cycle lengthStreamline approvals, eliminate stalls, better demo/trialInverse: 50% shorter = 2x velocity

    Reducing cycle length is often the quickest win. Identify where deals stall most frequently (usually awaiting internal approvals or legal review) and streamline those stages with standardized processes and pre-approved templates.

    Frequently Asked Questions

    Need Help With Implementation?

    Our team specializes in implementing the solutions described in this glossary.

    Get in Touch