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Sales pipeline velocity calculator

Marketing Math

The Sales Pipeline Velocity Calculator helps managers identify opportunities to grow their businesses, by identifying potential improvements with their sales process.

The data’s value is really in its benchmark-ability, and its ability to incite 4 big-picture questions around sales growth strategy, namely:

  1. ‘How can we reduce our sales cycle time?’
    • can we attract more clients when they are ready to buy, rather than always going out and building leads?
  2. ‘How can we increase our close rates?’
    • is this a training issue, or are there other forces affecting our close rate?
  3. ‘How can we increase the number of qualified leads that we’re managing?’
    • can we identify alternate, cost-efficient forms of marketing or sales that will bring leads to our team?
  4. ‘How can we increase our average sale?’

The Sales Pipeline Calculator provides useful insights when tracked over time, relative to the same business unit.

The number itself is usually not able to be compared to other units, unless the units are virtually exact (as in franchise operations).
It serves as a useful leading-indicator of business health by providing a bellwether of sales health – and can focus both Sales and Marketing on short term key performance measures such as:
  • increasing the number of qualified leads
  • closing the leads currently in the pipeline
  • adding more staff, increasing the average sale value
  • or influencing the length of the sales cycle

Because the data provided by the Sales Pipeline Velocity Calculator is unique to your business, it serves as a useful internal benchmark regarding sales progress.  It can also be used with a fair degree of confidence to compare the sales-pipeline health of two or more similar SBU’s or branches.