Formula
Sales Pipeline Velocity = (Number of Opportunities × Win Rate × Average Deal Size) ÷ Sales Cycle Length
Calculation Example
If a company has 100 deals in pipeline, a 30% win rate, an average deal size of $10,000, and a 40-day sales cycle, Sales Pipeline Velocity = (100 × 0.30 × 10,000) ÷ 40 = $75,000 per day
Data Source
CRM software, sales reports
Tracking Frequency
Monthly, Quarterly
Optimal Value
A higher velocity is better; it indicates an efficient sales process.
Minimum Acceptable Value
A declining pipeline velocity suggests bottlenecks in the sales process.
Benchmark
Depends on industry; Tech ~$50,000-$200,000 per month, B2B services ~$20,000-$100,000
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare teams)
How It Appears in Reports
Displayed in sales reports to analyze sales process efficiency.
Why Is This KPI Important?
Helps businesses forecast revenue and optimize sales operations.
Typical Problems and Limitations
Does not account for seasonality; can be affected by sudden deal closures or delays.
Actions for Poor Results
Shorten sales cycle, improve lead nurturing, optimize follow-up strategies.
Related KPIs
Sales Cycle Length, Win Rate, Average Deal Size
Real-Life Examples
A consulting firm increased sales pipeline velocity by 35% by automating follow-ups.
Most Common Mistakes
Improving pipeline velocity without ensuring deal quality.
