Calculate Sales Velocity Without Fooling Yourself
Calculate and interpret sales velocity using clean inputs
Leadership wants to know whether velocity improved after a pricing promotion. Key performance indicator The common trap is explaining the total variance with one dramatic anecdote while ignoring smaller offsetting changes. Step 1 Use the velocity structure: opportunities times average deal size times win rate divided by cycle length. The formula forces you to show whether speed, value, volume, or quality changed. Step 2 Hold cohort constant: compare opportunities created in the same month and segment. Mixed cohorts can make velocity look better simply because older deals closed. Step 3 Read the driver: cycle length improved, but win rate fell…
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