What is Deal Velocity Rate?
Deal velocity rate zooms in on movement: are deals progressing briskly through stages or bogging down. It is about pace, not dollars.
Tracking it by stage pinpoints exactly where deals slow, which is often a more actionable diagnosis than a single overall cycle length.
Short answer
Deal velocity rate measures how quickly individual deals advance through pipeline stages, typically as average days spent per stage or the rate of stage progression. Unlike sales velocity, which measures revenue per day across the pipeline, deal velocity rate focuses on the speed of movement itself. Slowing velocity is an early signal of process friction or weakening deals.
Key takeaways
- Speed of deals moving through stages.
- Measured as average days per stage.
- Distinct from revenue-based sales velocity.
- Slowing velocity flags process friction early.
Why it matters
A deal slowing its stage-to-stage progression is often the first sign of trouble, before engagement visibly drops. Watching velocity by stage catches friction early and shows exactly which transition to fix.
How Ardovo handles it
Ardovo tracks how fast deals move through each stage against your baseline, so Rook can flag deals decelerating and identify the specific stage transition where the pipeline is losing speed.
Frequently asked questions
What is deal velocity rate?
It measures how quickly individual deals progress through pipeline stages, usually as average days per stage. It focuses on the speed of movement itself, unlike sales velocity, which measures revenue generated per day.
How is deal velocity different from sales velocity?
Sales velocity is a revenue metric: deals times value times win rate divided by cycle length, yielding dollars per day. Deal velocity rate is about the pace of stage progression for individual deals, measured in days per stage.
Why track deal velocity by stage?
Because it pinpoints where deals slow down. A single overall cycle length hides the bottleneck; measuring velocity per stage shows exactly which transition is dragging so you can fix the real constraint.