Deal Velocity

Deal velocity refers to the speed at which a business can move a potential deal from initial contact to closing.

Example: Consider a company that manufactures and supplies office furniture looking to partner with a firm that specializes in office design and renovation. The initial contact is made in January. By efficiently managing communications, aligning on goals, and swiftly overcoming any barriers to agreement, they sign a partnership contract by the end of February. This quick turnaround from initial contact to formal partnership showcases deal velocity in a non-SaaS, B2B context.

• Speed of negotiations and decision-making processes directly influences the time to close a deal.
• Efficiently moving through deal stages can significantly impact revenue growth and competitive advantage.
• High deal velocity requires clear communication, effective collaboration, and mutual understanding of goals between parties.

Understanding deal velocity helps businesses streamline their sales processes, improve efficiency in partnership formations, and strategize for faster market penetration, ultimately enhancing revenue growth and market position.