What is Sales Velocity and How to Measure It in 2023

How can your business get a higher sales velocity?

There are numerous ways!

Keep in mind that one of the strategies I list may not be possible for your team, and that’s okay!

Determine the strategy that will work best for your business and run with it!

Increase Sales Velocity by Increasing the Number of Opportunities

An excellent way to boost sales velocity is to increase the number of sales opportunities.

Sourcing valuable leads is far more critical than attracting more total prospects.

So, if your total leads decrease, but the number of high-quality leads increases, you’re doing something right!

Of course, there will still be bad leads here and there (that’s just a part of business).

Still, moving away from these bad leads quickly is crucial rather than letting them increase the average sales cycle length.

How can you source high-quality leads? Fortunately, there are several techniques, including the following:

• Social media ads (Instagram, Twitter, LinkedIn, etc.)
• Pay-per-click ads
• B2B lead generation techniques
• CRM software

When searching for leads via social media advertisements, ensure you run ads on platforms your audience uses.

There is no point in running LinkedIn ads if your target market isn’t on LinkedIn!

Increase Sales Velocity by Increasing Average Deal Value

In addition to increasing the number of leads, you can also increase the average deal value!

How can you do this?

Well, start by adding additional services to your existing products!

Offering more from your company could be anything from a discount on installation fees to an online support system for customers after they purchase from you.

These add-ons will help show potential customers the extra value your business can bring them.

Also, offering add-ons will help your sales team close more deals!

Another way to increase average deal size is to use a tiered pricing system.

This pricing type allows consumers to choose what they need from you, which can help reduce costs for customers who don’t need all of your services.

If you’re worried about customers opting for the cheaper tier, consider offering add-ons!

Unique add-ons can include the following things:

• Exclusive discounts
• Free products
• Extended warranties

Increasing the average deal size helps increase sales velocity and brings your business more revenue!

Increase Sales Velocity by Shortening the Sales Cycle

A higher sales velocity means your company’s average sales cycle length is optimized!

Therefore, you should shorten the length of the sales cycle duration in any way possible.

Think about it this way: the more efficient and productive your team is, the quicker you can close deals.

But how do you shorten the average sales cycle length?

There are a few ways, including the following techniques:

• Use software to automate mundane, repetitive tasks
• Explore prospect objections before responding to them
• Setting goals and objectives for every sales call
• Setting clear guidelines for pricing early in the sales process
• Making it easy for prospects to sign contracts from any device
• Focusing on the highest-performing channels

Speaking from personal experience, automation software is an effortless way to shorten your sales pipeline.

Technology like CRM can help your sales and marketing teams be more productive by handling things like:

• Sending emails
• Posting content
• Setting reminders

When I first started automating repetitive tasks, my sales and marketing teams were able to focus on more customer-centric tasks.

As a result, customer satisfaction and average customer life increased!

Increase Sales Velocity by Improving Your Win/Loss Rate

You can increase sales velocity by improving your win/loss rate.

For those who don’t know, the win rate is the percentage of deals your team wins compared to those lost.

The higher your win/loss rate is, the more deals you’re closing, and the faster your average sales cycle length will be!

So, let’s talk about how to increase your win/loss rate.

One way to do this is by investing time into understanding the customer journey and your qualified leads better.

For instance, learn more about your target market’s pain points and struggles so you can create a tailored solution that meets their needs best.

Additionally, involving sales team members in developing sales strategies can help you pinpoint areas of improvement and create better results.

Further, creating a competitive edge by offering unique services and add-ons can give your team the upper hand when closing deals!

Some other ways to improve your win rate include the following techniques:

• Remove prospects who have unavoidable roadblocks from the sales pipeline
• Define clear steps for what defines a qualified lead
• Involve a decision-maker early in the process

Remember, keeping the criteria the same to define a qualified sales prospect is essential, as it ensures your company has accurate data.

Increase Sales Velocity by Increasing Your Number of Leads

Finally, you can increase sales velocity by increasing the number of leads.

As mentioned previously, it’s essential to focus on bringing in high-quality leads rather than a high quantity of total prospects.

That said, there are several ways to source more qualified leads.

One way is through content marketing.

Content marketing allows businesses to attract potential customers who are already interested in their services or products.

Creating content that educates potential customers about your business can help you generate more leads and increase sales velocity!

You can also contact existing customers, offering them special discounts for referring new customers.

This is a great way to acquire new qualified leads while showing appreciation to loyal customers.

In addition, you can use other digital marketing techniques to reach potential leads, including the following:

• Organic search (SEO)
• Email marketing
• Search engine ads

Lastly, create a comprehensive lead generation strategy including all these methods.

That way, your sales team will have more qualified leads and be able to hit their targets faster.