Sales
Definition
Pipeline Velocity measures the rate at which opportunities move through sales stages to closure. The standard formula is: (Number of opportunities × Average deal size × Win rate) / Sales cycle length. Higher velocity means more revenue generated per day of sales effort.
Key points
- Formula: (Opps × Avg Deal × Win Rate) / Cycle Length = revenue per day
- Four levers: more opportunities, larger deals, higher win rates, shorter cycles
- Track velocity by segment to identify best-performing ICPs
- Velocity improvements compound revenue in next quarter's output
Example
A team has 50 opps in pipeline averaging $20k, 25% win rate, 60-day cycle: velocity = (50 × $20k × 0.25) / 60 = $4,166/day revenue generation rate.
Related terms
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