Are you ready to rev up your sales and accelerate your business success? Look no further than sales velocity – the turbocharger for your revenue engine! In this post, we will take you on a wild ride through the world of sales velocity – from the definition and formula to its importance and strategies for boosting it. Buckle up, and let’s get ready to hit the gas because you’ll be a sales velocity superstar by the end of this ride, leaving your competitors in the dust!

What is Sales Velocity? (Definition)

Sales Velocity is a metric that measures how quickly a business is generating revenue. It considers the daily revenue generated and the time it takes to close a sale. This metric is crucial for businesses to track because it provides insight into the sales process’s efficiency and helps identify growth opportunities.

Sales Velocity differs from other sales metrics in that it measures the speed and amount of revenue generated. For example, while the revenue growth rate measures the percentage increase in revenue from one period to another, it doesn’t consider the time it takes to generate that revenue. In contrast, sales velocity looks at the daily revenue generated and how long it takes to close a sale, providing a more comprehensive picture of sales efficiency.

Tracking sales velocity can help businesses make data-driven decisions to optimize their sales process and accelerate revenue growth. Businesses can boost their sales velocity and achieve greater success by identifying areas where the sales process can be improved and implementing strategies to increase efficiency.


The Formula to Calculate Sales Velocity!

The sales velocity formula is a simple calculation that provides a clear snapshot of a company’s sales efficiency.

1. Division formula: Sales Cycle Length = (Total Days in the Sales Cycle) / (Number of Closed Deals)

Definition: The division formula for sales cycle length involves dividing the total number of days it takes for a prospect to move through the sales process and close a deal by the number of closed deals. This provides an average sales cycle length per deal. This metric can be useful for tracking the effectiveness of changes made to the sales process and comparing sales cycle lengths across different sales teams or periods.


2. Multiplication formula: Sales Cycle Length = (Average Time for Each Stage of the Sales Process) x (Number of Stages in the Sales Process)

Definition: The multiplication formula for sales cycle length involves calculating the average time for each stage of the sales process and multiplying it by the number of stages. This estimates the total time it takes for a prospect to move through the entire sales cycle. This metric can be useful for identifying which stages of the sales process are taking the most time and where improvements can be made to streamline the process and reduce the sales cycle length.

In the next section, we’ll take a closer look at how to track your sales velocity effectively and the metrics you should be measuring. So, if you want to take control of your sales process and drive your business forward, let’s continue reading.


Why is it Important to Track Your Sales Velocity?

If you’re a business owner or sales manager, you’re likely always looking for ways to increase revenue and grow your customer base. But how do you measure the effectiveness of your sales strategy? This is where tracking your sales velocity comes into play. This section will discuss why tracking your sales velocity is important and how it can help you make informed decisions to drive your business forward.

1. Identifying Areas for Improvement

By monitoring your sales velocity, you can identify areas in your sales process that may slow down your team’s ability to close deals. For example, if your sales velocity has decreased, it may indicate that your team is struggling to close deals or your sales cycle is taking longer than usual. You can improve your sales process by identifying these areas to increase efficiency and productivity.


2. Forecasting Revenue

Sales Velocity is a valuable tool for forecasting revenue, as it clearly shows how much revenue your sales team generates over a given period. By tracking changes in your sales velocity, you can make more accurate revenue projections and adjust your sales strategy accordingly.


3. Making Data-Driven Decisions

Sales Velocity quantitatively measures your sales team’s performance, allowing you to make data-driven decisions about your sales strategy. For example, if your sales velocity has decreased, you may invest in additional training or tools to help your team close deals more efficiently.

In addition to these benefits, sales velocity can also help you benchmark your sales team’s performance against industry standards and competitors, providing insight into the effectiveness of your marketing and lead generation efforts.

Tracking your velocity is a valuable way to monitor your sales team’s performance, identify areas for improvement, and make data-driven decisions to help your business grow and succeed.

If you’re ready to learn more about accelerating your sales velocity, let’s dive into the following section to discover some effective methods and tactics to get you there.


How to Accelerate Your Sales Velocity?

Sales velocity measures how quickly you can close deals and generate revenue. To accelerate your sales velocity, you must streamline your sales process and optimize your sales team’s performance. Here are a few tips and strategies in helping you do that:

1. Streamline your sales process

Identify the key stages and find ways to remove unnecessary steps or bottlenecks. Use customer relationship management (CRM) software to automate repetitive tasks and make your sales process more efficient.


2. Qualify leads effectively

Focus on high-quality leads more likely to convert into customers. Use lead scoring and other tools to identify the best prospects and prioritize your sales efforts accordingly.


3. Optimize your sales team’s performance

Please provide them with the training, resources, and support they need to succeed. Use data and analytics to track their performance and identify areas to improve.


4. Improve your sales messaging

Ensure your sales messaging is clear, concise, and focused on customer needs. Use customer feedback and data to refine your messaging and make it more effective.


5. Align your sales and marketing efforts

Ensure the sales and marketing teams work together effectively to generate leads and close deals. Use a unified messaging strategy to ensure consistency across all your sales and marketing channels.

Here are a few real-world examples of companies that have successfully increased their sales velocity:


HubSpot is a marketing and sales software company that uses a combination of inbound marketing and sales strategies to accelerate its sales. By focusing on lead generation, lead nurturing, and sales enablement, HubSpot has increased its sales and rapidly grown its business.



Salesforce is a CRM software company that built its business around optimizing the sales process. By providing sales teams with tools and resources that streamline the sales process, Salesforce has accelerated its sales velocity and generated significant revenue growth.



Amazon is a global e-commerce giant that has built its business around fast and efficient sales. By investing heavily in technology and logistics, Amazon has reduced the time it takes to process orders and deliver products, which has helped accelerate its sales velocity and drive significant revenue growth.


In the world of sales, velocity is king. To ramp up your sales velocity, you must optimize your process and empower your team with the right tools and training. By qualifying leads, honing your messaging, and aligning your sales and marketing strategies, you can turbocharge your sales and generate serious revenue growth. So if you want to go full throttle and leave your competition in the dust, start tracking your sales velocity today and implement these acceleration strategies! The road to success awaits you – just hit the gas and let’s go!

Further Reads:

Sales Enablement: Definition, Types and Functions!

Sales Process: What is it & How To Create a Document for it? (Template Included)

Sales Sheet: What is it & How to Create it? (Steps Included)

Sales Plan: What is it & How to Create an Effective One? (Free Template Included)

10 Best Sales Tools For Prospecting!

9 Sales Collateral Examples You Should be Using!