Learn the 4 Components of Sales Velocity with Sean Huckstep
If you’re in door to door sales, you know the name Sam Taggart. His d2d tips have helped thousands of sales reps and he’s chatting with SalesRabbit’s VP of Sales, Sean Huckstep, about what sales velocity is and how it can help you grow your business. Learn here what sales velocity is, tips for sales managers, and why sales reps should use it.
What is Sales Velocity?
Sales velocity is a single metric that is a conglomerate of key performance indicators. This gives you a trend to how well your business or you as a rep is doing. Overall sales velocity reflects how quickly you move leads through your funnel to produce revenue.
4 Components of Sales Velocity
- Number of opportunities.
- Average deal size.
- Your win rate.
- Length of sales cycle.
These are the four main levers to look at to create a sales velocity score. This metric isn’t something to look at on a daily basis, it should be looked at as a trend perspective from month-to-month or quarter-to-quarter. If it’s not increasing, then something in one of the 4 main components is askew.
“80% of B2C companies that talk to SalesRabbit, majority cannot tell you this score. No one really knows their metrics.”
Identifying these metrics as a sales manager or rep is crucial for growth. If you aren’t tracking these numbers, you’re missing out on the opportunity to change and evolve your business.
Tips for Sales Managers to Track Sales Velocity
For sales managers, data is your best friend. Using data to track your reps will help you identify high performers, reps that are underperforming, and ways that you can shave time in a reps day to help them knock more doors. According to Sean Huckstep, the best steps for sales managers to make if they’re not already tracking key metrics are to:
- Develop or find a system of record.
- Consider hiring a Sales Enablement Manager to record these metrics for you if you can’t find time to input data.
- Utilize leaderboards to motivate your reps and easily track your top performers.
- Invest time and resources into your reps to make their experience better which will in-turn lead to better customer satisfaction.
Why Should Sales Reps Care about Sales Velocity?
The difference between a good rep and a great rep is one that understands the importance of key metrics like sales velocity. Tracking the 4 components to figure out your sales velocity will help you accomplish things like:
- Incremental steps to help you track your own progress.
- Quicker way to understand your flaws in the sales process.
- More revenue produced.
Check out the full video here!