Imagine that your sales team is jam-packed, with plenty of meetings and a good volume of leads, but your revenue figures never seem to budge. This, unfortunately, is not a unique case in the business world. Sure, a bustling sales floor feels like a good indicator that everything is running smoothly, but often it conceals something more important: a slow sales pipeline.
Velocity, in a sales pipeline, is considered in terms of the speed at which qualified leads move through the sales funnel and end up becoming paying customers. This is an important metric that gives great insight into how well the sales mechanisms are running. Given today’s competitive B2B environment, high sales pipeline velocity should be paramount in propelling continuous revenue growth.
So what’s important about velocity in the first place? Here is the breakdown:
Accurate Forecasting: With a healthy sales pipeline, companies will be able to achieve predictable velocity, which makes it possible for them to forecast revenues. This leads to the activities of strategic planning and enables one to achieve probable goals as well as make the correct decisions on the use of resources.
Optimized Resource Allocation: Knowing the length of your sales cycle and the various conversion rates helps to set resource focus for top performers, identifying
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