Understanding Sales Velocity In Agent Reporting

Sales velocity is the measurement of how quickly Opportunities become "Won" and generate revenue. Sales velocity = Total Sales (in USD) / Average Sales Cycle (in month) Where, Total Sales Value = total sum of value of won opportunities (in the selected time range)Average Sales Cycle = Total Sales Duration / Length of opportunities wonTotal Sales Duration = Sum of the sales duration of all (won) opportunitiesLength of opportunities won =Individual sales duration = Difference between the time creation of opportunity & time when opportunity is marked wonIn other words, Sales Velocity = Monthly Sales Value, (V * L) = Total Sales Value / Normalised Average Sales Cycle (in months)For Example: Let's say a User had 3 Opportunities were marked WON in the time period of 1 week.

Opportunity #1 was created on Dec. 1st and was marked WON on Dec. 20th (open for 20 Days) and had a sales value of $30Opportunity #2 was created on Dec. 15th and was marked WON on Dec.

21st (open for 5 Days) and had a sales value of $50Opportunity #3 was created on Dec. 21st and was marked WON on Dec. 22nd (Open for 2 Day) and had a sales value of $70In this case, Total Sales Value = $150Total Sales Duration = (20 days from Opportunity #1 + 5 days from Op #2 + 2 days from Op #3) = 27 dAverage Sales Cycle = 27 days / 3 won opportunities = 9 daysAverage Daily Sales Value = $150 / 9 days = $16.

67 / dayMonthly Sales Value = ($150 / 9 days) * 30 days = $500/monthSales Velocity = $500/month