Sales Velocity¶

Definition¶

Sales Velocity measures how quickly revenue is generated through the sales pipeline over a specific period. It evaluates the speed and efficiency with which deals progress and close, providing insights into overall sales performance.

Description¶

Sales Velocity is a key indicator of sales efficiency, revenue acceleration, and GTM process maturity, combining opportunity volume, win rate, deal value, and sales cycle length to show how quickly your pipeline turns into revenue.

Its interpretation varies based on business model:

In B2B SaaS, it helps assess how quickly reps can move qualified deals through the funnel.
In SMB or PLG motions, it's a barometer of how efficiently in-product signals turn into paid conversions.
In enterprise sales, velocity informs forecast accuracy and sales capacity planning.

A rising Sales Velocity typically signals faster time-to-close, better qualification, and improved sales enablement. A declining trend could indicate pipeline bloat, long sales cycles, or conversion friction. By segmenting velocity by rep, region, deal type, or source, you can identify which levers accelerate revenue and which areas need process tuning.

Sales Velocity informs:

Strategic decisions, like territory planning, resource allocation, and revenue modeling
Tactical actions, such as prioritizing hot deals or coaching slow-moving reps
Operational improvements, including CRM hygiene and funnel stage definitions
Cross-functional alignment, by helping sales, ops, and leadership stay focused on revenue speed, not just volume

Key Drivers¶

These are the main factors that directly impact the metric. Understanding these lets you know what levers you can pull to improve the outcome

Pipeline Quality and Prioritization: More deals isn’t better — the right deals, faster, is the goal.
Rep Focus and Deal Coaching: High-velocity teams know what to close and when to walk away.
Sales Enablement and Tooling: Faster access to answers = faster movement through funnel.

Improvement Tactics & Quick Wins¶

Actionable ideas to optimize this KPI, from fast, low-effort wins to strategic initiatives that drive measurable impact.

If velocity is lagging, analyze it by rep and stage to find bottlenecks.
Add deal prioritization scores to help reps focus on winnable opportunities.
Run “fast deal” playbooks — highlight common traits of your shortest sales cycles.
Refine CRM automation to cut manual work and shorten follow-up time.
Partner with marketing and sales to sync messaging around urgency and outcomes.

Required Datapoints to calculate the metric
- Number of Opportunities: The total number of active deals in the sales pipeline.
- Average Deal Value: The average monetary value of a deal.
- Win Rate: The percentage of opportunities that convert into closed deals.
- Sales Cycle Length: The average time (in days, weeks, or months) it takes to close a deal.
Example to show how the metric is derived

A B2B SaaS company calculates its Sales Velocity as follows:
- Number of Opportunities: 50
- Average Deal Value: $10,000
- Win Rate: 20% (0.2)
- Sales Cycle Length: 30 days
- Sales Velocity = (50 × $10,000 × 0.2) / 30 = $3,333.33 per day

Formula¶

Formula

\[ \mathrm{Sales\ Velocity} = \frac{\mathrm{Number\ of\ Opportunities} \times \mathrm{Average\ Deal\ Value} \times \mathrm{Win\ Rate}}{\mathrm{Sales\ Cycle\ Length}} \]

Data Model Definition¶

How this KPI is structured in Cube.js, including its key measures, dimensions, and calculation logic for consistent reporting.

OpportunitiesDeals

cube('Opportunities', {
  sql: `SELECT * FROM opportunities`,
  measures: {
    count: {
      sql: `id`,
      type: 'count',
      title: 'Number of Opportunities',
      description: 'The total number of active deals in the sales pipeline.'
    }
  },
  dimensions: {
    id: {
      sql: `id`,
      type: 'string',
      primaryKey: true
    },
    createdAt: {
      sql: `created_at`,
      type: 'time',
      title: 'Created At',
      description: 'The time when the opportunity was created.'
    }
  }
})

cube('Deals', {
  sql: `SELECT * FROM deals`,
  measures: {
    averageDealValue: {
      sql: `amount`,
      type: 'avg',
      title: 'Average Deal Value',
      description: 'The average monetary value of a deal.'
    },
    winRate: {
      sql: `CASE WHEN status = 'won' THEN 1 ELSE 0 END`,
      type: 'avg',
      title: 'Win Rate',
      description: 'The percentage of opportunities that convert into closed deals.'
    },
    salesCycleLength: {
      sql: `DATEDIFF(closed_at, created_at)`,
      type: 'avg',
      title: 'Sales Cycle Length',
      description: 'The average time it takes to close a deal.'
    }
  },
  dimensions: {
    id: {
      sql: `id`,
      type: 'string',
      primaryKey: true
    },
    createdAt: {
      sql: `created_at`,
      type: 'time',
      title: 'Created At',
      description: 'The time when the deal was created.'
    },
    closedAt: {
      sql: `closed_at`,
      type: 'time',
      title: 'Closed At',
      description: 'The time when the deal was closed.'
    },
    status: {
      sql: `status`,
      type: 'string',
      title: 'Status',
      description: 'The current status of the deal.'
    }
  }
})

Note: This is a reference implementation and should be used as a starting point. You’ll need to adapt it to match your own data model and schema

Positive & Negative Influences¶

Negative influences

Factors that drive the metric in an undesirable direction, often signaling risk or decline.
- Deal Complexity: Complex deals require more time and resources, slowing down the sales process and negatively affecting Sales Velocity.
- Inefficient Sales Processes: Bottlenecks and inefficiencies in the sales process delay deal progression, reducing Sales Velocity.
- Poor Lead Qualification: Focusing on unqualified leads wastes time and resources, hindering Sales Velocity.
- Lack of Sales Training: Insufficient training results in less effective sales reps, slowing down deal closure and decreasing Sales Velocity.
- Inadequate Sales Tools: Lack of proper tools and resources hampers the sales process, negatively impacting Sales Velocity.
Positive influences

Factors that push the metric in a favorable direction, supporting growth or improvement.
- Pipeline Quality and Prioritization: Focusing on high-quality deals and prioritizing them effectively leads to faster deal closure, thereby increasing Sales Velocity.
- Rep Focus and Deal Coaching: Effective coaching and focus on the right deals enable sales reps to close deals more efficiently, positively impacting Sales Velocity.
- Sales Enablement and Tooling: Providing sales teams with the right tools and resources accelerates the sales process, enhancing Sales Velocity.
- Lead Response Time: Quicker response to leads increases the likelihood of conversion, thus improving Sales Velocity.
- Customer Relationship Management: Strong relationships with customers facilitate smoother negotiations and faster deal closures, boosting Sales Velocity.

Involved Roles & Activities¶

Involved Roles

These roles are typically responsible for implementing or monitoring this KPI:

Product Marketing (PMM)
Revenue Operations
Sales Manager
Activities

Common initiatives or actions associated with this KPI:

Sales Enablement
Deal Acceleration Programs
Sales Coaching
Forecasting Accuracy

Funnel Stage & Type¶

AAARRR Funnel Stage

This KPI is associated with the following stages in the AAARRR (Pirate Metrics) funnel:

Acquisition
Type

This KPI is classified as a Lagging Indicator. It reflects the results of past actions or behaviors and is used to validate performance or assess the impact of previous strategies.

Supporting Leading & Lagging Metrics¶

Leading

These leading indicators influence this KPI and act as early signals that forecast future changes in this KPI.
- Deal Velocity: Deal Velocity directly impacts Sales Velocity by measuring how quickly deals move through the pipeline. Increases in Deal Velocity typically forecast improved Sales Velocity, as faster deal progression means more revenue generated in less time.
- SQL-to-Opportunity Conversion Rate: This metric signals how efficiently qualified leads are moving to pipeline opportunities. High conversion rates suggest a healthier pipeline and higher likelihood of increased Sales Velocity in subsequent periods.
- Product Qualified Leads: The volume and quality of Product Qualified Leads indicate the readiness of prospects to enter and progress through the sales pipeline, serving as an early signal for future changes in Sales Velocity.
- Sales Pipeline Growth: Growth in the sales pipeline's value or volume boosts the pool of potential deals. This leading indicator helps forecast upcoming increases in Sales Velocity as more opportunities are available to close.
- Marketing Qualified Leads (MQLs): The influx of high-quality MQLs provides the initial fuel for the sales pipeline, often preceding and predicting changes in Sales Velocity as these leads mature into opportunities and deals.
Lagging

These lagging indicators confirm, quantify, or amplify this KPI and help explain the broader business impact on this KPI after the fact.
- Conversion Rate: Post-period Conversion Rate data can help recalibrate Sales Velocity forecasts by showing how efficiently pipeline opportunities were converted to closed deals, informing adjustments to qualification or follow-up strategies.
- Average Sales Cycle Length: By analyzing the actual average time taken to close deals, this metric allows teams to fine-tune leading indicators and pipeline management strategies, improving the accuracy of future Sales Velocity predictions.
- Pipeline Value Growth: Growth in the total value of pipeline opportunities, measured after the fact, informs whether recent changes in leading indicators like deal velocity or lead quality resulted in actual pipeline expansion, helping recalibrate forecast models.
- Win Rate: The proportion of opportunities that resulted in closed-won deals provides critical feedback on sales effectiveness, allowing for refinement of Sales Velocity leading indicators and resource allocation.
- Customer Churn Rate: Elevated churn rates can signal underlying issues with product fit or customer experience. Understanding these post-period can drive changes in how sales activities and velocity are managed to pursue more sustainable growth.