Pipeline Velocity
Rate at which opportunities move through the pipeline and generate revenue
What is Pipeline Velocity?
Pipeline velocity is the amount of revenue moving through the sales pipeline each day. It combines the number of opportunities, the win rate, the deal size and the length of the sales cycle into one figure.
It shows how fast a team turns pipeline into revenue and which lever, of the four, offers the most room to improve.
How this KPI is measured
- Function
- Sales
- Sub-function
- Pipeline Management
- Industry
- All Industries
- Type
- Leading
- Impact
- Efficiency
- Unit
- $/day
- Measurement frequency
- Monthly / Quarterly
- Formula
- (Number of opportunities × Win rate × Average deal size) / Average sales cycle length in days
How to calculate it
Multiply the number of opportunities by the win rate and the average deal size, then divide by the average sales cycle length in days.
For example, with 100 opportunities, a 25% win rate, an average deal of 20,000 and a 50-day cycle, velocity is (100 x 0.25 x 20,000) / 50 = 10,000 per day.
Improving any one of the four inputs raises velocity, so the formula also shows where effort has the most effect.
Where it is used
Finding the best lever
See whether volume, win rate, deal size or speed is the best place to improve.
Tracking sales health
Watch one number that reflects the whole process.
Forecasting
Estimate revenue over a period.
How to improve it
Tips and common mistakes
- Use consistent definitions for opportunities and deal size.
- Raising one input can lower another, such as pushing deal size and lengthening the cycle.
- Calculate for comparable segments.
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