Plain-language questions
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KPI · Sales
Pipeline velocity: formula and example.
Pipeline velocity is the revenue your pipeline delivers per day on average. It combines four factors: the number of open opportunities, average deal size, win rate and sales cycle length. In a single figure it shows whether your sales engine is speeding up or slowing down, and which factor is behind it.
Pipeline velocity formula
(Number of open opportunities × average deal size × win rate) ÷ sales cycle length in days
Worked example
Acme Groothandel has 62 open deals, an average deal size of €18,000, a win rate of 35% and a sales cycle of 64 days. Pipeline velocity is (62 × €18,000 × 0.35) ÷ 64 = €390,600 ÷ 64 ≈ €6,103 per day.
Fictitious figures for Acme Groothandel, a sample wholesaler.
How to read this KPI
Higher pipeline velocity means more revenue comes out of your pipeline each day. Its strength lies in the four components: improve any one of them and velocity rises. Compare it by quarter and by team, and always check which component explains the change.
Pitfalls with pipeline velocity
- Calculating the four components over different periods or teams, so the result no longer means anything.
- Counting every open deal, including deals that have been stuck for months.
- Reading the result as an exact revenue forecast, while it is an indication of pace.
SQL & DAX
Calculating pipeline velocity in SQL and DAX
Two examples on a fictitious data warehouse for Acme Groothandel: a PostgreSQL query and a measure for a Power BI model. Adjust table and column names to your own model.
WITH closed AS (
SELECT AVG(amount) FILTER (WHERE status = 'won') AS avg_deal,
COUNT(*) FILTER (WHERE status = 'won')::numeric / NULLIF(COUNT(*), 0) AS win_rate,
AVG(closed_at::date - created_at::date) FILTER (WHERE status = 'won') AS cycle_days
FROM deals
WHERE status IN ('won', 'lost') AND closed_at >= current_date - interval '12 months'),
open_deals AS (SELECT COUNT(*) AS n FROM deals WHERE status = 'open')
SELECT o.n AS open_deals, c.avg_deal, c.win_rate, c.cycle_days,
ROUND(o.n * c.avg_deal * c.win_rate / NULLIF(c.cycle_days, 0), 0) AS velocity_per_day
FROM open_deals o, closed c;Pipeline Velocity =
VAR OpenDeals = CALCULATE(COUNTROWS(Deals), Deals[Status] = "open")
VAR WonDeals = CALCULATE(COUNTROWS(Deals), Deals[Status] = "won")
VAR AvgDeal = DIVIDE(CALCULATE(SUM(Deals[Amount]), Deals[Status] = "won"), WonDeals)
VAR WinRate = DIVIDE(WonDeals, CALCULATE(COUNTROWS(Deals), Deals[Status] IN {"won", "lost"}))
VAR CycleDays = DIVIDE(SUMX(FILTER(Deals, Deals[Status] = "won"), DATEDIFF(Deals[CreatedAt], Deals[ClosedAt], DAY)), WonDeals)
RETURN
DIVIDE(OpenDeals * AvgDeal * WinRate, CycleDays)In ENABLE
Tracking this KPI in ENABLE
In your Power BI dashboard
Define the KPI as a measure in your Power BI model and show it in the portal, with "Last refreshed" next to it. Access profiles and optional row-level security decide who sees which figures.
Custom dashboards (pilot)
Add the KPI as a tile to a custom dashboard, compared with last year. The Dashboard Builder is a pilot and can be switched on per client.
Monthly targets
With the built-in Targets app you set a target for the KPI per month, so you see actuals and target side by side.
FAQ
Frequently asked questions
How do you calculate pipeline velocity?
Multiply the number of open deals by average deal size and win rate, then divide by the average sales cycle in days. With 62 deals, €18,000, 35% and 64 days, that comes to about €6,103 per day. Use the same period and team for all components.
How can you increase sales velocity?
You increase sales velocity by improving one of the four components: more qualified opportunities, larger deals, a higher win rate or a shorter sales cycle. Look at which component is weakest in your situation. Small improvements in each component add up quickly.
What is the difference between pipeline velocity and lead velocity rate?
Pipeline velocity measures how much revenue flows through your pipeline per day, while lead velocity rate measures how fast the number of qualified leads grows month on month. Lead velocity rate therefore looks at intake at the top of the funnel. A rising lead velocity rate feeds pipeline velocity over time.
Further reading
- KPI librarySales KPIs: formulas and examplesSales KPIs measure how healthy your pipeline is and how well it turns into revenue. The data comes from your CRM, combined with invoiced revenue from your accounting system.Read more
- ResourcesHow to build a KPI dashboard: steps and examplesA KPI dashboard is an overview of the key figures you use to steer towards your goals, such as revenue, margin, on-time delivery or absenteeism. A good KPI dashboard does not start with the software, but with the decisions it needs to support. You then choose a limited number of KPIs, define them, sketch the dashboard and only then build it.Read more
- SolutionPower BI dashboard portal: share dashboards securelyShare your Power BI dashboards securely in your own portal, with role-based access.Read more
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