The Sales Velocity Equation - A tool for good and evil
In this episode, Africa Regional Host Dave Nel joins Trust Enablement Customer Council Member Petek Hawkins and Greg Stockton, CEO of Prosperity, a Financial Planning firm in Dubai, to explore the Sales Velocity Equation.
What is the Sales Velocity Formula?
The formula measures how quickly you are bringing money in the door and is calculated by taking the product of the number of opportunities, deal value, and your current win rate and dividing that value by the average deal cycle length.
The discussion in this session raised exciting points for all of us to consider:
- This formula is very short-term focused - or, as Simon Sinek would say, playing the Finite game.
- Strategic, long-term companies should use this as one metric amongst all. You cannot play the infinite game and win if you only measure using finite game metrics.
- To maximize sales velocity, you can see significant payback by influencing all of these values. However, most often, it's best to focus on influencing one of these metrics as that singular focus will work best for most companies.
Give a listen and remain curious.
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