Pipeline Velocity: The Key Metric for Sales and Marketing Success

In this video, Steve Robinson talks about a key performance indicator called pipeline velocity. He explains how this metric can help organizations understand their efficiency in generating revenue, and how it can be used as a success metric for both sales and marketing teams.

Key Points:

  • Pipeline velocity is a metric that measures the efficiency of an organization in generating revenue.
  • It is not a sales or marketing-specific metric, but rather a combination of both.
  • Pipeline velocity is calculated by multiplying the number of deals in the pipeline with the average deal size and the win rate, and then dividing it by the average time to close.
  • There are four levers that can be pulled to increase revenue: increase the number of leads, increase the size of the leads, increase the overall win rate, and decrease the time to close.
  • Pipeline velocity can be used to measure progress year over year, or period over period improvements in organizational efficiency in generating revenue.

Implementing pipeline velocity as a metric for success for both sales and marketing teams can help organizations map the four metrics individually and identify where they stand. By pulling the four levers to increase revenue, sales and marketing teams can work together to achieve their goals and increase their pipeline velocity.

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