10 Mar How to use mathematics to improve Sales performance
6 Strategies to improve your Sales Velocity
Sales velocity is similar in concept to any other type of velocity measurement. In a car, velocity is a measure of its speed i.e. miles per hour.
Sales Velocity measures and predicts the “£’s per day” – how much and how quickly is your business making money?
The equation for Sales Velocity is as follow:
The benefit of understanding Sales as a mathematical equation is that you can:
- Measure and compare improvement over time.
- Analyse and measure the different strengths and weaknesses of sales people across different territories, selling different products.
- Map sales skills such as prospecting, qualifying, needs analysis and closing skills to the equation to help identify skills gaps.
- Provide a prediction of pipeline value and early warning of problems.
Microsoft Dynamics 365 / CRM can be set up to measure the individuals in the sales team and their specific velocity. The equation can be broken down and sales improvement plans can be devised to increase individual sales performance.
Many organisations think they have a sales process but it is undocumented and not enforced. Formalising the process is the first step to being able to improve sales velocity.