{"id":529,"date":"2025-03-05T12:00:00","date_gmt":"2025-03-05T13:00:00","guid":{"rendered":"http:\/\/nurseagence.com\/?p=529"},"modified":"2025-03-18T13:12:48","modified_gmt":"2025-03-18T13:12:48","slug":"sales-velocity-what-it-is-how-to-measure-it","status":"publish","type":"post","link":"http:\/\/nurseagence.com\/index.php\/2025\/03\/05\/sales-velocity-what-it-is-how-to-measure-it\/","title":{"rendered":"Sales Velocity: What It Is & How to Measure It"},"content":{"rendered":"

Have you been in an interview and asked your prospective employer which sales metrics they value most? That answer is probably, “Yes.<\/em>“<\/p>\n

What if I asked you if you’d ever questioned your interviewer about their sales velocity? If you answered “Yes<\/em>” again, you already know how important this calculation is to understand the growth mindset and overall health of a sales organization.<\/p>\n

If you’ve never thought much about a company’s sales velocity, take a moment to brush up on this important equation \u2014 and go beyond KPIs to impress your manager or future manager the next time you meet.<\/p>\n

So, what is sales velocity?<\/p>\n

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The results of the sales velocity equation reflect the health of the business, the overall effectiveness of the sales team, and where the team can increase sales productivity to positively impact revenue goals.<\/p>\n

HubSpot Director of Sales Dan Tyre<\/a> says, “Every sales manager lives in fear their sales pipeline is a bunch of fluff. In today’s instant gratification world, uncovering a sense of urgency and establishing sales velocity is important because it uncovers a slow-moving or, even worse, stagnant pipe.”<\/p>\n

Now that we know what sales velocity is and why it’s important, how do we calculate it?<\/p>\n

How to Calculate Sales Velocity<\/h2>\n

To accurately calculate an organization’s sales velocity, start by separating small, mid-market, and enterprise pipelines. Your company likely has its own nuanced definition of what constitutes each of these segments and you should divide them accordingly.<\/p>\n

Once you’ve divided your market segments, run a sales velocity equation for each one.<\/p>\n

Sales Velocity = Number of Opportunities x Deal Value x Win Rate \/ Length of Sales Cycle<\/em><\/p>\n

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The Four Factors of Sales Velocity<\/h3>\n

The four variables that make up sales velocity are all metrics that your CRM<\/a> should already be tracking, and they comprise of:<\/p>\n