Glossary

Sales Velocity

Sales velocity measures how fast a pipeline generates revenue. Learn the four-driver decomposition that fits cleanly into a KPI tree.

Sales Velocity = (Number of Opportunities × Average Deal Size × Win Rate) ÷ Sales Cycle Length. It is one of the cleanest natively-decomposed sales metrics: four independent drivers multiply (and divide) into a single revenue-per-day output. In a KPI tree, sales velocity is a textbook example of multiplicative decomposition and exposes whether a revenue gap is a volume, price, conversion, or speed problem.