Sales velocity is usually defined as the Number of Leads (#) x Average Deal Value ($) x Win Rate (%) / Average Sales Cycle (L). When you increase the sales velocity, you increase your sales results, or so says conventional wisdom.
The problem with this formula is that many producers focus most of their time on getting more leads as opposed to optimizing the opportunities they already have. For many producers, adding new opportunities is the easiest part of the sales process, especially if that’s how productivity is measured.
While filling the pipeline is important, focusing on just the number o
f leads can lead to a false sense of security. It can also lead to an ineffective allocation of agency resources if some of those opportunities go to market without a good chance to close.
IIAT’s Sales Management Toolkit has a variety of tools to help you increase your sales velocity by optimizing your opportunities. Click the “view more” button in Step 4 of the toolkit to access these and other tools:
- Producer Goal Workbook
- Producer Marketing and Sales Primer
- Pre-call Planning Primer
- Opening Appointment Questionnaire
- Prequalification Checklist
- Underwriting Data Checklist
- Executive Narrative Outline
As the economy in Texas continues to tighten from the oil & gas contraction, it is more important than ever to pre-qualify prospects and make the most of each encounter before allocating valuable agency time and resources.