Article
Thought Leadership
Pipeline velocity, the metric your board wants in Q4
Michael Larmon
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Revenue feels slow when leads sit between hand raise and first meeting. Pipeline velocity shows how fast value moves across your funnel. It turns hand waving into numbers you can manage.
What pipeline velocity is
Pipeline velocity estimates how much revenue moves through your pipeline in a period. It blends count, quality, and speed.
Formula
Pipeline Velocity per day = Opportunities × Win Rate × Average Deal Size ÷ Sales Cycle Length (days)
Example: 200 opportunities × 25 percent win rate × 25,000 dollars ÷ 60 days = 20,833 dollars per day.
Track it by day, month, and quarter. Look for slope, not noise.
Why it matters now
- It exposes bottlenecks that do not show in lead volume.
- It links sales cycle length to cash timing.
- It gives finance a number to plan around.
- It is hard to game, since each input is auditable.
Three levers that move velocity fast
1) Reduce time to first touch
- Set a breach alert at 30 minutes for demo and pricing forms.
- Route high intent direct to AEs.
- Give reps one field that helps them act, buying timeframe.
Target: 15 to 30 minutes for first human touch on high intent.
2) Lift win rate with tighter entry criteria
- Define SQL in one line. Example, accepted meeting with the right title at the right account.
- Stop stuffing low intent into the same sequence.
- Add no‑show follow up within one hour with two new time options.
Target: move win rate two points this quarter. Small lifts compound.
3) Shorten the sales cycle by removing idle time
- Audit the no‑decision stage. Most stalls live here.
- Add one mutual action plan template to all late stage deals.
- Pre‑build the security and legal packet. Send it with the proposal.
Target: take 10 to 15 days out of cycle time by cutting waits between steps.
How to report it
Add three tiles to your exec dashboard:
- Velocity per day, with 30‑day trend.
- Win rate, with a simple line.
- Median sales cycle length, last 90 days.
Show a notes field. Write one sentence on what changed the last seven days.
Common traps
- Counting leads instead of opportunities.
- Averaging in old enterprise cycles with new SMB deals. Segment by ACV band.
- Ignoring no‑shows. They inflate cycle time and hide low intent.
Next step
Run the calculation with your own data today. Then use a short checklist to tighten the handoff.
