Data quality: the accelerator of Sales Velocity

Michiel Alkemade
May 3, 2024 - Reading time 7 minutes

In today's competitive market, it's essential for companies to not only sell quickly but also smartly. Sales Velocity is thereby a key indicator of success, as it provides insight into how effective and efficient your sales processes actually are.

This metric consists of four components: the number of leads, the conversion rate, the average order value, and the length of the sales cycle. All of these elements play a role in measuring the success of your sales efforts. But more importantly, all of these elements are influenced by the quality of the underlying data.

Sales Velocity, coupled with the crucial role of data quality, can lead your company to better sales performance and increased profitability. Let's further explore this dynamic.

Deepening of Sales Velocity

Sales Velocity is not just a reflection of the speed at which transactions are completed; it is a metric that represents the health and efficiency of your company's sales process. Sales Velocity impacts many aspects of business operations, from cash flow management to strategic planning.

Sales Velocity measures how quickly your company generates revenue from sales efforts. It is a direct reflection of the health and dynamics of your sales process, consisting of four main components:

  1. Number of leads: The total number of potential customers entering your sales funnel. A higher number of high-quality leads can lay the foundation for an increase in sales opportunities.
  2. Conversion ratio: The percentage of these leads that actually convert into paying customers. Improvements here mean that your sales strategies and processes resonate with your target audience.
  3. Average Order Value: The average value generated by each closed deal. By increasing the value of each transaction, you increase your total revenue without necessarily increasing the number of sales.
  4. Duration of Sales Cycle: How long it takes to close a sale: from quote to deal. A shorter cycle means that your sales efforts lead to revenue more quickly, increasing your Sales Velocity.


Imagine Lars's sales team focuses on B2B sales of cloud storage solutions. He wants to calculate his team's sales velocity for the last quarter.

  • They had an average of 120 leads in the pipeline
  • The average deal value during that period was €5,000.
  • The team's average win ratio during the previous quarter was 40% = 0.4
  • The length of the sales cycle, or the average time it takes to convert leads into an order, was 40 days.

The formula for the team's sales velocity looks like this:

(120 x €5,000 x 0.4) / 40 = €6,000 per day

This means that Lars's team earns €6,000 x 90 days (the length of a quarter) or €540,000 per quarter.

The impact of data quality

Data quality is the backbone of each of these components. Without accurate, up-to-date, and relevant data, it is challenging to generate targeted leads, optimize conversion processes, maximize deal value, or identify inefficiencies in the sales cycle. The quality of your CRM data influences every step in the sales funnel/customer journey and thus the overall Sales Velocity of your company.

Improving data quality can lead to significant improvements in Sales Velocity by:

  • Insights for refining lead generation: By using data to refine your ideal customer profile, you can conduct more targeted marketing campaigns that result in higher-quality leads.
  • Better understanding of customer's needs: This is essential for increasing the conversion rate. By analyzing customer data, you can develop personalized campaigns that resonate with your target audience.
  • Strategic opportunities for value enhancement: Analyzing purchasing behavior and customer preferences can uncover untapped opportunities for cross- and upselling, thereby increasing the average order value.
  • Efficiency improvements in the sales cycle: Data can provide insight into bottlenecks in your sales process, enabling you to make targeted improvements that shorten the sales cycle and enhance Sales Velocity.

Interesting read: A magic crystal ball for marketing and sales?

Practical strategies for optimizing Sales Velocity

Improving your Sales Velocity requires a strategic approach that focuses on continually improving the quality of your (CRM) data. Given the close relationship between data quality and Sales Velocity, here are some strategies you can apply to enhance sales performance:

Implementation of Master Data Management (MDM)

  • Approach: Implement an MDM system to establish a single source of truth for all organizational data, including customer information, product data, and interaction history.
  • Advantages: Ensures consistent, accurate, and up-to-date information across the organization, forming the foundation for effective decision-making and strategy development.

Interesting read: What is Master Data Management and how does it work?

Advanced data integration

  • Approach: Integrate data from various sources, such as CRM systems, ERP systems, and external data feeds, to gain a holistic view of customers and markets.
  • Advantages: Provides a complete view of the customer journey and interactions, enabling targeted and personalized sales strategies.

Refining your Ideal Customer Profile (ICP)

  • Approach: Use data analysis to gain deeper insights into the characteristics, needs, and behaviors of your most profitable customers. Regularly update your ICP to reflect changing market trends.
  • Advantages: Aids in targeting marketing efforts more effectively and increasing the quality of leads.

Integration of Third-Party Data

  • Approach: Enrich your existing customer and market data with information from third parties to gain a more complete picture of your target market.
  • Advantages: Provides deeper insights into your addressable market, customer behavior, market trends, and competitor activities, which can lead to better market approach.

Cultural focus on data-driven decision making

  • Approach: Ensure a company culture that supports the use of data for decision-making, including training and development of employees in data analysis and interpretation.
  • Advantages: Improves overall business performance by ensuring decisions are made based on solid data and insights.

These strategies emphasize the importance of an integrated approach to data quality and management to improve Sales Velocity. By focusing on collecting, analyzing, and applying high-quality data, companies can not only optimize their sales processes but also establish a strong foundation for sustainable growth and competitive advantage.


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