It's time to introduce the pipeline velocity matrix...
Step 1: Take the number of qualified opportunities in your pipeline
Step 2: Multiply this by your average deal size
Step 3: Divide this by your average deal cycle
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Example:
- Leads = 100
- total deal size = ÂŁ10,000
- average win rate = 40%
- average deal cycle = 40 days
100 x ÂŁ10,000 = ÂŁ1,000,000 Ă· 40% = ÂŁ400,000
ÂŁ400,000 Ă· 40 = ÂŁ10,000
It's like the miles per hour, but of the sales world