Consider that your sales team is overburdened with meetings and a high amount of prospects, yet your income figures remain static. Unfortunately, this is not an isolated incident in the business world. Sure, a busy sales floor appears to be a good sign that everything is working smoothly, but it frequently covers something more serious: a stagnant sales funnel.
Sales Pipeline Velocity refers to the rate at which qualified leads travel through the sales funnel and become paying clients. This is a critical indicator that provides valuable insight into how well the sales channels are functioning. Given today’s competitive B2B climate, high sales funnel velocity should be critical to driving continuous revenue growth.
So, why is velocity so significant in the first place? Here’s the breakdown:
Accurate Forecasting: With a robust sales funnel, firms can achieve predictable velocity, allowing them to forecast revenue. This leads to strategic planning activities, which allow one to reach probable goals while also making sound resource allocation decisions.
Optimized Resource Allocation: Understanding the length of your sales cycle and the various conversion rates allows you to focus resources on top performers, determining where they should spend their time selling in order to get the most out of a company’s investment.