Sales Velocity is a measure of the speed at which sales are being closed
. It is calculated by multiplying the number of deals closed by the average deal size and dividing by the length of the sales cycle.
For example, if a sales team closed 20 deals worth $50,000 each in a quarter, and the average length of the sales cycle is three months, their sales velocity would be $1,666,667.
This KPI is used to measure the efficiency of the sales process and to identify bottlenecks or areas for improvement in terms of lead generation, lead qualification, and deal closing.