Pipeline velocity is an important sales and marketing metric that is often overlooked. Knowing the details of your pipeline velocity can help you with better forecast accuracy because it measures the rate of change in your pipe, giving you a clear ideas of the overall health of your pipeline.
When you calculate your pipeline velocity, you can identify the key drivers that impact your business, letting you focus on those you can control and improve.
Pipeline velocity is the dollar over day measure of your pipeline value. It’s calculated like this:
(#of deals) x (average deal size) x (win conversion rate)
average selling time in days
Once you know your pipeline velocity, you’ll have better visibility, and better pipeline management which leads to more accurate forecasting.
