Velocity: The Pulse of Your Sales Pipeline

by Jason Ogden | May 21, 2024

Velocity is the speed at which your sales team converts leads into paying customers.  Over time, you should improve your process top to bottom to minimize friction and maximize the value of each interaction with your prospects and partners. 

Why Obsess About Velocity?

1. Enhanced Customer Experience: When your sales process is efficient, your customers benefit too. They experience a streamlined, personalized journey, leading to higher satisfaction and increased loyalty.
2. Improved Sales Forecasting: Velocity metrics give you a crystal-clear view of your sales pipeline’s performance. You can confidently forecast revenue, plan for growth, and make informed decisions about your sales team and marketing initiatives.
3. Accelerated Revenue: Faster sales cycles mean deals close sooner, revenue hits your books faster, and your business scales at a rapid pace. In today’s competitive landscape, this is how you outmaneuver the competition.
4. Efficient Resource Allocation: By maintaining ICP discipline and focusing on future client experiences, you can learn which stages in your funnel cause bottlenecks.  You can allocate your resources more effectively. This allows you to invest in the strategies that truly drive revenue and avoid costly detours.

Measuring and Optimizing Your Velocity

1. Track the Right Metrics: Make sure your weekly or monthly scorecard has a velocity/lead indicator metric.  Every funnel is different but you could use any one:  the number of opportunities, average deal value, win rate, and sales cycle length. Use a CRM (Customer Relationship Management) system to centralize your data and gain actionable insights.
2. Identify Bottlenecks: Analyze your funnel to pinpoint where deals stall or slow down. Is it a particular stage, a specific type of lead, or a weakness in your sales team’s approach?
3. Implement Data-Driven Improvements: Once you’ve identified bottlenecks, take action. Refine your lead qualification process, optimize your sales messaging, invest in targeted training, or leverage automation to streamline repetitive tasks.

Remember, velocity isn’t just about closing deals faster – it’s about doing so in a way that maximizes value for both your business and your customers.