Does it take you longer to close deals than you expect?
If so, then you may have a low sales velocity. Sales velocity is a management metric that measures the time it takes for a new lead to be converted to a closed deal. It can be calculated with the equation below.
Qualified Opportunities x Win Rate x Deal Size / Length of Sales Cycle
Optimising your sales processes is an effective way to increase sales velocity but often, this can be a time-consuming process. In the following sections we discuss how to investigate your sales cycle from end to end and work out where efficiency savings can be made.
What is making your sales cycle longer?
If your sales pipeline is full of old, slow-moving opportunities then this is bad news for your business. Sales leaders need to keep an eye on these four variables in order to recover their sales velocity.
- Number of qualified leads – how many leads each sales rep handles per month
- Win rate – percentage of leads converted into paying customers per month
- Deal size – average selling price for the deals closed in a month
- Length of sales cycle – average time in months it takes to go from a lead to a closed deal
Look for ways to increase variables 1-3 and reduce 4.
How can you accelerate your sales processes?
Optimise your sales processes and encourage your team to be more agile sellers and you could close more deals in less time.
The downside here is that understanding what is impacting your sales velocity processes and encouraging adoption amongst your sales team takes time. Invest time to:
- Re-evaluate your pipeline
- Manage your opportunities
- Understand your customers
Focus on growing your pipeline, improving your win rate, decreasing the sales cycle and keeping an eye on deal size to see results.
Changes in sales velocity are more important than the value itself – use the equation to see the results of any changes you make to your sales processes.
Experiment with shorter or simplified trials and record information in your CRM system in a timely fashion.
Research your customers carefully, jump on the opportunities that are most likely to close.
Collaborate with others on your sales and marketing team to prevent duplication of effort and leave leads that are not yet ready to buy to the marketing team to nurture.
Win more deals more quickly with Artesian
Artesian is a software solution that provides contextual, relevant insight into customers and their markets in real-time, helping you get to know your customers better and giving you a competitive edge when it really matters.
Applying a systematic process to researching customers from prospects to opportunities to deals to retention will help your sales team to move opportunities through your pipeline and forge strong relationships with customers through finding triggers to initiate conversations that are about the customer and not about selling.
Qualifying and nurturing sales leads is simpler with Artesian; just follow the companies in your prospects list then sit back and let Artesian do your research for you.
Reviewing our comprehensive company data and director information is a great starting point when you have a new prospect but there is a wealth of other information available.
If an opportunity is deemed to be a long-term opportunity, these insights can be shared with your team for the purposes of campaign targeting and nurturing.
The best way to understand how Artesian can help accelerate your sales processes is to see it in action.
We have dedicated teams on stand by ready to give you a tailored demonstration.