SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders

Sales Velocity

Feb 19, 2025

Sales Velocity is a game-changing metric that reveals how much new business a sales team can generate daily. The hosts break down its calculation and explore its role in measuring sales capacity, effectiveness, and efficiency. They discuss various strategies to boost Sales Velocity and the importance of focusing on key variables like win rates and average contract values. Practical insights are shared on optimizing sales performance without distorting data, making this a must-listen for sales leaders eager to enhance their strategies.

24:17

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Sales Velocity, calculated through specific inputs, is crucial for understanding a sales team's capacity to generate daily bookings.

Balancing effectiveness and efficiency metrics is essential for sales leaders to improve overall performance and make informed decisions.

Deep dives

Understanding Sales Velocity

Sales velocity is calculated by the formula that multiplies the number of opportunities, the average contract value, and the win rate, then divides this product by the average sales cycle. This formula helps determine the daily bookings a company can generate based on these variables. An important detail is the time frame used for the sales cycle, which can affect whether the calculation reflects business days or calendar days. The metric serves as a key indicator of sales performance, helping organizations understand how efficiently they can convert opportunities into revenue.

Intro

2min

Understanding Sales Velocity: Formula and Interpretation

3min

Understanding Sales Velocity

5min

Maximizing Sales Velocity

13min

Assessing Sales Velocity and Its Practical Applications

3min

The Sales Velocity metric calculation formula is (win rate x average contract value x # opportunities)/ average sales cycle length. The resultant Sales Velocity metrics highlights the amount of new bookings a Sales team can deliver per day....one key question about Sales Velocity is " is this a metric to help understand sales capacity, sales effectiveness or sales efficiency?

Dave "CAC" Kellogg and Ray "Growth" Rike break down Sales Velocity in this episode covering key topics including:

Sales Velocity Calculation
Sales Velocity Benefits
Which input variables to focus on first
Four Approaches to Increase Sales Velocity

If you have a sales team, lead a sales team or are involved in how sales performance impacts financial goals, this episode provides several key "operator insights" on how to use the Sales Velocity metric and ideas on how to improve Sales Velocity!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export