💰 New deals per month

The average number of new deals add to your pipeline each month. In your CRM, this will be the average number of deals with a new ‘create date’ each month.  

Formula
=
COUNT {deals} / 3
Only include deals with a {Create Date} in the last 90 days

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🕔 Average months to convert

The average number of months it takes for deals to move through your sales stages. In your CRM, start with just the won deals that have closed in the period you are interested in and calculate the average difference between create dates and closed dates. 

Formula
=
SUM[ Deals {Time to convert} ] / COUNT[ Deals ]
where {Time to convert} in months = [ {Closed Date} - {Create Date} ] / 30
Only include deals with a {Closed Date} in the last 90 days 

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🤝🏻Win rate

The proportion of prospects that convert into paying customers over a given period. Calculated as the value of Won deals/(Won deals + Lost deals). Note that the win rate ignores deals that remain open on the basis that they could become either won or lost.  So you should be careful about stale opportunities that should really be classified as lost as these will over-state your win rate. The below formula is weighted based on the value, not the number of deals Won or Lost.

Formula
=
SUM[ Awarded deals {Amount} ] / [SUM[ Awarded deals {Amount} ] + SUM[ Lost deals {Amount} ]]
Only include deals with a {Closed Date} in the last 90 days 

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💵 Average deal value

The average value of awarded deals.  This is where the monetary value comes in and it’s important that we measure it for Won deals only for the sales velocity formula to work.

Formula
=
SUM[ Awarded deals {Amount} ] / COUNT[ Awarded deals ]
Only include deals with a {Closed Date} in the last 90 days 


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📅 Average deal length

Te weighted average duration of a deal from when it is won (or when delivery actually starts) until all of the revenue has been earned.  This is used to take into account the fact that there might be a relationship between deal value and deal duration. Duration data isn’t captured in most CRMs by default, but it is worth adding a custom deal property to start record this metric duration.   

To calculate the weighted average deal length, start with the won deals that have closed in the period you are interested in then, take the value for each deal, multiply by the duration for each deal, calculate the sum total of these value-x-duration amounts and divide by the sum total of the deal value. And you’ve got it!

Formula
=
SUM[ Awarded deals {Duration} ] / COUNT[ Awarded deals ]
where {Duration} = number of months deals are spread over in QuarterOne
Only include deals with a {Closed Date} in the last 90 days 

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