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Revenue operations

What is Pipeline velocity?

Pipeline velocity estimates how quickly revenue moves through a sales process, combining the number of qualified opportunities, average deal value, win rate and average cycle length into a single rate-of-revenue figure.

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Definition

Definition

Pipeline velocity estimates how quickly revenue moves through a sales process, combining the number of qualified opportunities, average deal value, win rate and average cycle length into a single rate-of-revenue figure.

Its value is diagnostic. The same velocity decline can come from four different causes, and the components separate them.

It degrades badly when stage definitions are inconsistent, since both cycle length and win rate depend on what "qualified" means.

The usual error

Where this goes wrong in practice

Improving the number by tightening qualification. Fewer, better opportunities raise the rate while the business generates less revenue.