Pipeline Velocity
| Factor | Low Velocity | High Velocity |
|---|---|---|
| Cycle time | Slow (40–60d) | Fast (20–35d) |
| Win rate | 15–20% | 25–35% |
| Deal size | Small/flat | Growing |
| Pipeline/rep | Thin | Healthy (3–4× quota) |
💡TL;DR
Formula: (Opps x Avg Deal x Win Rate) / Cycle Days. Focus on the weakest of the four factors. SMB pipelines are thin and swing weekly, so judge trends monthly or by 3-month moving average. Run improvement cycles as: identify weakest lever, experiment fast, re-measure.
Definition
A composite metric combining deal size, win rate, cycle length, and pipeline per rep to show how fast revenue moves through the funnel. It highlights which lever—volume, value, speed, or quality—is limiting growth.
🏢What This Means for SMB Teams
Small teams move big when one factor improves. Focus on the weakest lever.
📋Practical Example
A 38-person HR tech vendor ($10M ARR) tracked pipeline velocity monthly. Before: 320 opps/quarter, avg deal $14k, win rate 22%, cycle 46 days → velocity $21k/day. They focused on cycle (legal templates) and win rate (multi-threading). After 60 days, cycle dropped to 36 days and win rate hit 27%, raising velocity to $33k/day and adding $420k closed-won in the quarter without increasing opp volume.
🔧Implementation Steps
- 1
Calculate the four factors monthly and plot trends: opp count, deal size, win rate, cycle.
- 2
Pick the lowest-performing factor and set a 60-day improvement goal with two plays.
- 3
Instrument dashboards to show factor impact; simulate “what-if” changes for planning.
- 4
Run weekly standups to check progress and remove blockers on the chosen factor.
- 5
Recompute velocity monthly; switch focus only after gains are stable for 4 weeks.
❓Frequently Asked Questions
How is pipeline velocity different from sales velocity?
They are often identical formulas. Some teams reserve “sales velocity” for closed-won revenue and “pipeline velocity” for open pipeline projections. Align on one definition to avoid reporting conflicts.
What if deal volume is tiny?
Use a three-month rolling view and simulate scenarios. Focus on cycle and win-rate levers first—they move velocity fastest with low volume.
⚡How Optifai Uses This
Optifai auto-calculates the four factors and recommends plays for the weakest lever.
📚References
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Related Terms
Sales Velocity
A metric measuring how quickly deals move through the pipeline and generate revenue, calculated as: (Number of Opportunities × Win Rate × Average Deal Size) / Sales Cycle Length.
Revenue Velocity Index
A composite metric that scores pipeline health by weighting deal cycle time, win rate, deal size, and active pipeline per rep. It tracks how fast revenue moves, not just how much exists.
Sales Cycle Length
Average time from first qualified touch (e.g., SQL) to closed-won or closed-lost. Best tracked by stage to reveal where legal, security, or internal approvals create bottlenecks.
Win Rate
Closed-won deals divided by total closed deals (won + lost) in a period. Often segmented by segment, source, or competitor to find where messaging or qualification is weakest.
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