Wouldn’t you like to know how fast your company is growing? Maybe even visualize some levers you can focus on improving to accelerate your growth? Enter our newest report: Sales Velocity.
Sales Velocity is an aptly coined name, as the report measures the speed at which you are generating revenue. The sales per day metric is defined by:
( Number of Opportunities * Average Opportunity Size * Win Rate ) / Sales Cycle = Sales Velocity
Each of the 4 inputs offer room for improvement. Obviously, more opportunities in your pipeline will increase your prospective growth rate. So will average opportunity size. Win rate and sales cycle are where things get interesting. Of course you want to improve them, but how?
Diving deeper into your sales cycle…
Consequently, the second part of our sales velocity report is a breakdown of your sales cycle by opportunity stage. We share three bar charts with you:
- Open Opportunities. Average days spent in each stage for all of your open opportunities, inclusive of the quantity of deals in each stage.
- Lost Opportunities. A similar bar chart as above, but for your lost opportunities. Maybe there is insight into where in your pipeline they are failing?
- Won Opportunities. Another similar bar chart, and a good one to compare to your open and lost opportunities.
Below is a sample Sales Velocity report. You can also check out our CRM Tools page for more information about all of our reports.
What would you work on improving is this was your own company’s growth? Would you focus on your average deal size, your win rate, or shortening your sales cycle?
To help you answer that question, here are two additional resources on the topic:
- From the Marketo blog: The Critical Sales Metric Your Team Probably Isn’t Measuring
- From the Gary Smith Partnership blog: How to Increase Your Revenue by Measuring Sales Velocity