In any race, you typically track your progress by beating your time marks.
In business, you can also track how fast you make money.
This business stopwatch is called “sales velocity.”
Just as you’d want to reach the finish line take email marketing service first, businesses aim for higher sales velocity to earn cash quickly.
Find out why sales velocity matters, how to calculate it, and how you can increase it for your business growth.
What is sales velocity, and why does it matter?
Sales velocity indicates how rapidly a business makes sales, aka how quickly they earn money.
If you understand how fast your business is running (or, in this case, selling), you can make better decisions, such as how to speed up or where to invest more resources.
How to calculate sales velocity
Imagine you’re selling software.
4 tips to increase your sales velocity
To boost your sales velocity, you have to increase:
- Average deal size
Work on pushing lifetime deals or annual subscriptions rather than simply going for the smaller products.
- The number of opportunities
Qualify your leads effectively. If you’re targeting 5 ways to make popups look great on mobile devices every single lead in sight, chances are you’re reducing your opportunities rather than increasing them, as your name will be associated with spam by all those people whom your product is not suited for.
Key takeaways
Sales velocity doesn’t just measure sales but the rate at which they occur. Speed is the game-changer.
Opportunities, average deal size, win rate, and sales cycle duration are the driving factors. Understand them, and you master your sales velocity.
Knowing your sales velocity isn’t enough. Constantly aim data on to improve it – check out this 45-min pure value video & revolutionize your outreach!
So, next time you assess your sales performance, don’t just count the dollars. Measure how swiftly they come in and double down on things that speed up the process.