Sales Velocity
In short, sales velocity is the calculation of four major sales ops metrics to forecast how much revenue you stand to generate over a period of time.
It comprises these four metrics:
- Average Contract Value (ACV)
- Sales cycle length
- Number of deals in your pipeline
- Win rate of deals in the pipeline
There may be different acronyms or names for the four levers depending on the organization. These are the four thematic things that affect your revenue output.
Most relevant during:
PMF phase
GTM Fit phase
Scale phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K