Measures how quickly deals move through the sales pipeline to closure.

What it Measures ?

How fast deals move through the pipeline.

Relevant StakeHolders 

Sales Forecasting Teams, Sales Heads

Why it Matters ?

Measures how quickly deals move through the pipeline, impacting forecasting and revenue timelines.

In-depth Use Case / Real-world Example

Sales Pipeline Velocity quantifies how fast potential revenue flows through your pipeline. It's calculated using the formula: (Number of Opportunities × Average Deal Size × Win Rate) ÷ Average Sales Cycle Length. For example, a manufacturing company has 50 opportunities worth ₹10 lakhs each, a 20% win rate, and an average sales cycle of 60 days. Pipeline Velocity = (50 × 10L × 0.2) ÷ 60 = ₹1.67 lakhs/day. This KPI helps leaders understand how quickly revenue is being generated. If the velocity is slow, it may indicate bottlenecks, inefficient follow-ups, or overly long approval cycles. For manufacturers, accelerating pipeline velocity may require automation, better CRM practices, and real-time visibility into deal status.