Increasing their sales over significant time periods is one of the main goals of every business organization. It is also considered a metric to measure the success of the business. However, growing the sales is not easier. On the other hand, the authorities also have to consider faster lead conversion to ensure smooth and steady sales growth.
What is Sales Velocity?
Sales velocity is a sales metric that business organization use measure or check the sales progress, revenue and the details of how fast the prospect moves through the sales pipeline and add revenue to the organization. In other words, sales velocity is the metric that highlights the speed of lead movement through the sales pipeline.
Major Components of Sales Velocity
The major components of sales velocity include the following:
- Number of leads
- Average deal size
- Conversion rate
- Length of the sales cycle
How to Calculate Sales Velocity?
Having the major components of sales velocity is not enough to calculate it. However, you need to apply a formula to get the exact figure and idea about sales performance. The formula to calculate sales velocity is multiplying the number of opportunities with average deal size and conversion rate and dividing the equation by the length of the sales cycle.
Keep scrolling down this article to explore a comprehensive guide about sales velocity and learn how you can improve it.
Top 5 Tips to Improve Sales Velocity
If there are a few prospects in your sales pipeline for the last six months and have not sealed the deal yet, you cannot consider it a favorable scenario. If a lead takes more than six months to sign the deal, it means that there is something wrong in the process. Checking the sales velocity and improving it is the best way to ensure your success.
Here are some of the tried and tested tips to improve the sales velocity, which you can also follow and see the difference.
Improve Quality of Sales Leads
The very first tip to improve your sales velocity is to improve the quality of leads. If a lead is a not sales qualified yet present in your sales cycle for months, it highlights the inefficiency of the sales agents. Convincing the buyers is not enough as sales agents have to take care of such minute details. This is the major reason a lot of organizations hire sales company in Dubai and ensure that their sales are in the hands of trained and professional agents, who will add to their profits.
Increase the Quantity of Sales Leads
The next tip to help you improve sales velocity is to increase the quantity of sales leads. It means that the sales agents need to research more ideal prospects, nurture their interest and ensure that they enter the sales pipeline. A lower number of prospects in the pipeline means that you will not be able to meet your revenue goals, so act timely and improve the stats before it is too late.
Improve Deal Size
Another tip that can help you improve the sale velocity of your business organization is improving the deal size. Deal size is usually dependent on the price of the product or service. Increasing or decreasing the price of the product or service without consideration is not an ideal option. Instead, you can try and offer high-value and low-value benefits to the prospects, which will surely motivate them to sign more deals with you and contribute to your deal size improvement.
Shorten Sales Cycle
One of the basic and key tips to improve the sales velocity of your business organization is to shorten the sales cycle. Shortening the sales cycle means moving the prospects and leads in the sales cycle at a faster pace. You cannot just tell the prospect to check a few things and sign the deal. However, you can automate your process and offer lead nurturing with constant support and guidance at each and every step, which will help the leads decide faster and sign the deal.
Get Expert Support
The last tip you can follow is to get the support of experts. If your sales velocity is decreasing or stagnant for quite some time, it is a sign that you need to take action and improve it. If you keep neglecting it, it might cause irreparable loss to your business. So, hire an experienced sales company and let experts take charge and increase your sales velocity and help you earn more profit.
Not sure how to apply it?
If you are not a sales expert, you might face the challenge of implementing and improving sales velocity to increase the profits of your organization. However, your lack of expertise should not become a hurdle in your progress. So, get in touch with the trained professionals and let them take charge and show the growing scale to you.