What is Pipeline Velocity?

Pipeline Velocity calculates the rate at which your sales pipeline is generating revenue. It projects how much pipeline will convert to closed-won deals within a time window, based on historical performance.

Formula:

Pipeline Velocity = (Number of Opportunities × Average Deal Size × Win Rate) ÷ Average Sales Cycle Length

Example:

 Let’s say:

• 50 opps
• $10,000 average deal size
• 20% win rate
• 40-day average sales cycle

Then: Pipeline Velocity = (50 × $10,000 × 0.2) ÷ 40 = $2,500/day

This tells you your team is converting about $2,500 worth of pipeline into bookings each day.

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Why It Matters in B2B SaaS

• It’s a powerful forecasting tool. Velocity helps you model revenue impact based on deal flow and process efficiency.
• It gives insight into pipeline quality. Lots of opps with long cycles and low win rates = low velocity.
• It uncovers bottlenecks. A drop in velocity may point to poor qualification, slowing cycles, or lower conversion.
• It helps balance quantity and quality. Velocity rewards not just pipeline size, but how efficiently you move through it.
• It supports coaching and optimization. You can improve velocity by tuning any one of the four inputs.

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How to Measure Pipeline Velocity

Calculate:

• Number of Open Opportunities
• Average Deal Size (typically ACV or contract value)
• Win Rate (Closed-Won ÷ Total Opportunities)
• Average Sales Cycle Length (in days)

1. Plug into the formula
2. Optionally track by:

• Segment or region
• Rep or team
• Sales motion (inbound, outbound, expansion)

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Best Practices

• Measure monthly or quarterly. This gives you clear trends over time
• Improve inputs individually. Faster cycles, better win rates, or bigger deals all lift velocity
• Pair with coverage and stage data. Velocity alone isn’t enough without context
• Use it to scenario plan. Model “what-if” impacts of hiring, new segments, or changes in ICP
• Don’t over-optimize too soon. Look at trends, not isolated spikes