Velocity Benchmarks

Pipeline velocity is the speed at which deals move through the pipeline. It is calculated as the product of deal count, average deal value, and win rate, divided by the average sales cycle length. The formula produces a dollar amount per day — the rate at which the pipeline converts to revenue. A velocity of $15,000 per day means the pipeline produces $15,000 in closed revenue every day on average. The number is only useful when compared to a benchmark: last quarter's velocity, the target velocity needed to hit the number, or the velocity by rep.

1. Calculate Baseline Velocity Use the last two quarters of data. Apply the formula: (number of deals × average deal value × win rate) ÷ average cycle length in days. This is your baseline. All future measurements are compared against it.
2. Set Stage Velocity Benchmarks Calculate the average days in each stage for won deals. Stage 1: 8 days. Stage 2: 12 days. Stage 3: 18 days. Any deal exceeding 1.5x the benchmark for its stage is flagged. That multiplier — 1.5x — balances sensitivity with noise.
3. Monitor Velocity by Segment Enterprise deals have different velocity profiles than mid-market. New logo has different velocity than expansion. Calculate benchmarks per segment. A universal benchmark applied to all deals produces false positives and misses real stalls.