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Sales Velocity Formula

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Sales Velocity is the measurement of how quickly a prospective customer moves through a company’s sales pipeline and generates revenue. Check FAQs

SV = \frac{O contacted \cdot DV \cdot SWR}{L}

SV - Sales Velocity?O_contacted - Sales Opportunities Contacted?DV - Deal Value?SWR - Sales Win Rate?L - Length of Sales Cycle?

Sales Velocity Example

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With units

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Here is how the Sales Velocity equation looks like with Values.

Here is how the Sales Velocity equation looks like with Units.

Here is how the Sales Velocity equation looks like.

500000 = \frac{20 \cdot 2500 \cdot 250}{25}

500000 = \frac{20 \cdot 2500 \cdot 250}{25}

500000 = \frac{20 \cdot 2500 \cdot 250}{25}

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Sales Velocity Solution

Follow our step by step solution on how to calculate Sales Velocity?

FIRST Step Consider the formula

SV = \frac{O contacted \cdot DV \cdot SWR}{L}

Next Step Substitute values of Variables

∴

SV = \frac{20 \cdot 2500 \cdot 250}{25}

Next Step Prepare to Evaluate

∴

SV = \frac{20 \cdot 2500 \cdot 250}{25}

LAST Step Evaluate

∴

SV = 500000

Sales Velocity Formula Elements

Variables

Sales Velocity

Sales Velocity is the measurement of how quickly a prospective customer moves through a company’s sales pipeline and generates revenue.

Symbol: SV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales Velocity

Sales Opportunities Contacted

A Sales Opportunities Contacted is the possibility of a contact or an individual to pay for a product or service.

Symbol: O_contacted

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales Opportunities Contacted

Deal Value

Deal Value refers to the perceived quality and benefit derived from a product or service rather than just the price.

Symbol: DV

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Deal Value

Sales Win Rate

Sales Win Rate is defined as the percentage of total sales opportunities converted into actual sales. It shows the aggressiveness of an organization’s sales team.

Symbol: SWR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Sales Win Rate

Length of Sales Cycle

Length of Sales Cycle is the amount of time that passes between the first touch with a prospective customer and the closing of the deal.

Symbol: L

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Length of Sales Cycle

Other formulas in Sales Metrics category

Go Customer Lifetime Value

CLV = (ACV \cdot ACL) - CAC

Go Sales Win Rate

SWR = (\frac{Opportunities won}{O contacted}) \cdot 100

Go Sales Cycle

S cycle = \frac{n days}{O contacted}

Go Customer Retention Rate

CRR = \frac{nec - ncb}{ncb}

How to Evaluate Sales Velocity?

Sales Velocity evaluator uses Sales Velocity = (Sales Opportunities Contacted*Deal Value*Sales Win Rate)/Length of Sales Cycle to evaluate the Sales Velocity, The Sales Velocity measures the speed at which deals move through the sales pipeline, providing insights into sales efficiency and effectiveness. Sales Velocity is denoted by SV symbol.

How to evaluate Sales Velocity using this online evaluator? To use this online evaluator for Sales Velocity, enter Sales Opportunities Contacted (O_contacted), Deal Value (DV), Sales Win Rate (SWR) & Length of Sales Cycle (L) and hit the calculate button.

FAQs on Sales Velocity

What is the formula to find Sales Velocity?

The formula of Sales Velocity is expressed as Sales Velocity = (Sales Opportunities Contacted*Deal Value*Sales Win Rate)/Length of Sales Cycle. Here is an example- 500000 = (20*2500*250)/25.

How to calculate Sales Velocity?

With Sales Opportunities Contacted (O_contacted), Deal Value (DV), Sales Win Rate (SWR) & Length of Sales Cycle (L) we can find Sales Velocity using the formula - Sales Velocity = (Sales Opportunities Contacted*Deal Value*Sales Win Rate)/Length of Sales Cycle.

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Sales Velocity Formula

Sales Velocity Example

Sales Velocity Solution

Sales Velocity Formula Elements

Other formulas in Sales Metrics category

How to Evaluate Sales Velocity?

FAQs on Sales Velocity

Variable Name