Funnel Velocity

Funnel velocity is a metric that measures the speed at which leads move through your sales pipeline. It’s an important metric to track because it can help you identify bottlenecks in your sales process and make necessary adjustments to improve conversion rates. In this blog post, we’ll discuss what funnel velocity is and how to calculate it. We’ll also provide tips on how to improve your funnel velocity and boost your sales results. Let’s get started!

Defining Funnel Velocity in Marketing

Just as a physical funnel narrows towards its bottom, so does the customer journey funnel represents the journey from awareness to conversion. Also known as sales velocity, funnel velocity is a metric that measures the rate at which leads move through the sales pipeline.


It is a data-driven marketing tool for sales managers that can be used to measure and improve the performance of a sales cycle and marketing campaigns. Sales velocity can be used to track the number of leads generated, conversion rates, and the average time it takes for a lead to convert into a customer.

It’s a helpful way to gauge the health of your sales pipeline and identify any bottlenecks that may be causing potential customers to drop off at one point in the sales cycle. 

What Are the Factors that Affect Funnel Velocity?

Type of Product and Service Marketed

The type of product or service being marketed can have a significant impact on sales velocity. This is because potential customers must first assess their need for the product and whether they are willing to pay the premium price during the sales cycle.

In contrast, commodities are typically purchased based on price alone, resulting in a faster movement through the sales funnel.

A high-end luxury item will likely move more slowly through the marketing funnel than a low-cost commodity.

Additionally, products with a longer shelf life will tend to move more slowly through the funnel than those with a shorter shelf life. This is because customers have more time to consider their purchase and compare prices before making a decision. 


In general, higher prices tend to cause customers to hesitate and second-guess their decision to buy, resulting in a slower sales velocity.

On the other hand, lower prices may cause customers to feel like they are getting a good deal and prompt them to act more quickly in the sales cycle.

Special promotions or discounts can also affect sales velocity, enticing customers to make a purchase before the offer expires. 

Perceived Value

The perceived deal value is the customer’s perception of how much a product or service is worth, regardless of its actual price. If a customer perceives a high value, they will be more likely to move quickly through the purchase funnel and boost sales velocity.

Customers may be more likely to purchase a luxury car if they believe that it will provide them with status and prestige.

However, if they perceive a low deal value, they may hesitate or even choose to not purchase at all. 


If a product is in high demand and low supply, customers may be more likely to move quickly through the sales funnel in order to secure it. Meanwhile, if a product is readily available, customers may take their time to compare different options before making a purchase.

When something is scarce, people naturally assume that it must be valuable. By creating a sense of urgency, you can encourage your customers to take action sooner rather than later and bump up sales velocity.  


The higher the number of competitors, the harder it is to reach potential customers and convert them into buyers through the sales funnel.

Customers may be more likely to purchase a car from a dealership that has few other dealerships in the area selling the same car.

In addition, the more established the competitors are, the more difficult it is to persuade potential customers to switch to your product or service. 

How Do You Calculate Sales Velocity?

To calculate your sales velocity, you need to know the number of opportunities that enter your funnel, the average deal value, and the conversion rate of a lead to move to the deal.

2 4

You can multiply this information, and then divide the result by the length of your sales pipeline.

By measuring sales velocity, you can track how much revenue you are creating, identify bottlenecks in your funnel, and optimize your conversion rates.

8 Tips for Sales Managers to Bump Up Sales Funnel Velocity

1. Define Your Target Customers

A lot of businesses make the mistake of thinking that they can sell to anyone with a pulse. However, the truth is that not everyone is a potential customer for your product or service.

Trying to sell to everyone is a recipe for disaster, as it leads to inefficient use of resources and low conversion rates in your sales pipeline. 

Having a clear understanding of your target customer allows you to focus your marketing efforts, and sales funnel and connect with qualified leads who are more likely to be interested in your product or service.


By defining your target customer, you can save time and money while also increasing the chances of making a sale. Additionally, a well-defined target customer can help you to create a more personalised sales pitch that resonates with the buyer, improving sales velocity.  

2. Develop a Unique Selling Proposition

Being able to clearly articulate what makes your product or service unique is essential for any business looking to boost sales velocity.

A well-defined unique selling proposition (USP) helps potential customers understand what they can expect from your company and why they should choose you over the competition.

In a crowded marketplace, a USP can be the difference between making quality leads and losing prospects. Plus, a strong USP can help you charge premium prices for your products or services. 

3. Create Compelling Marketing Materials

Marketing plays a vital role in the sales process, and high-quality marketing materials can be a key differentiator to increasing sales velocity.

The goal is to make potential customers want to learn more about your product or service and ultimately make a purchase. 

Compelling marketing materials can help to boost sales velocity by grabbing attention, generating interest, and driving conversions. They can also help to build brand awareness and create a positive association with your company.

4. Understand Your Competition

Knowing who your competition is can help you to identify areas where you can improve your own sales funnel, and it can also help you to target your marketing efforts more effectively. 


When you know your competition, you can learn from mistakes, capitalize on their weaknesses and create more sales opportunities. In addition, a strong understanding of the competitive landscape can help you identify emerging trends, set your revenue goals and ensure that you are always ahead of the curve with your sales velocity.

5. Train Your Sales Team

Your sales team is one of the most important assets when it comes to building sales velocity. They need to be properly trained on your product or service, as well as your target customer and competition.

Additionally, they should be equipped with the right tools in any part of the sales cycle so that they can effectively sell to potential customers and increase sales velocity.

6. Implement an Inbound Sales Strategy

An inbound sales strategy focuses on attracting strangers and turning them into qualified leads, rather than cold-calling or other outbound methods for your sales pipeline.

This type of strategy generally includes creating compelling content that draws people in, as well as using targeted marketing techniques such as lead nurturing and lead scoring.

7. Use Technology To Your Advantage

Technology has revolutionized the business world, and there is no reason to fall behind in the race to the top. By using technology to your advantage, you can boost sales velocity and stay ahead of the competition. 

One way to do this is by using a customer relationship management (CRM) system in your sales cycle.

A CRM system can help you track customer data and collect valuable insights that can be used to improve your marketing and sales velocity. 

Additionally, you can use technology to automate repetitive tasks such as lead generation and email marketing. This will free up your time so that you can focus on more important tasks, such as fostering sales velocity and closing deals. 

8. Measure, Test, and Adjust

Finally, it is important to measure the results of your efforts so that you can fine-tune your approach as needed in your sales pipeline. By constantly monitoring key metrics such as conversion rates and cycle times in your funnel velocity, it is possible to identify areas where improvements can be made. 

Regularly test new techniques and strategies, and adjust accordingly based on the results of your sales velocity.


Given that the average attention span is now shorter than that of a goldfish, it’s no surprise that many businesses are struggling to keep up with the pace of change. One way to stay ahead of the curve is to ensure that your funnel velocity is as high as possible. Below are the top questions you might have about funnel velocity.

In marketing, funnel velocity is a metric that measures the speed with which customers move through the various stages of the sales funnel.

By tracking funnel velocity, businesses can identify bottlenecks and take steps to improve the customer experience.

A high funnel velocity indicates that a company is able to efficiently move prospective customers through the various stages of the sales process.

This is important because it allows a company to capitalize on opportunities and convert prospects into paying customers.

By tracking the number of leads, the conversion rate of those leads into customers, and the average value of each sale, businesses can get a clear picture of where their sales are coming from and how efficient their marketing and sales operations are. Understanding these numbers can make changes to their sales strategy and operations in order to improve their results.

First, make sure that you have a clear understanding of your target market. This will help you focus your marketing efforts and attract the right kind of leads.

Second, establish strong relationships with your prospect list. The more personal and responsive you are, the more likely they are to do business with you.

Finally, keep your pipeline full. Every day, take time to reach out to new potential customers and cultivate relationships with them.

In Summary,

It’s no secret that the sales process can be a long and drawn-out affair. Sales velocity is one of the most valuable sales metrics that can give you insights into the health of your sales funnel and the behaviour of your target market.

And by using some of the tips we’ve outlined in this blog post, you can start boosting your calculated sales velocity today. So what are you waiting for? Get started now and see an improvement in your bottom line!