Sales velocity is a key sales metric that measures how quickly deals move through the sales pipeline, helping businesses assess revenue potential over time. It is calculated using the formula: (Number of Opportunities ? Average Deal Value ? Win Rate) ? Sales Cycle Length. CRM platforms use sales velocity data to identify pipeline bottlenecks, optimize sales strategies, and improve forecasting accuracy. A higher sales velocity indicates faster deal closures and increased revenue efficiency. Businesses monitoring and optimizing sales velocity experience improved cash flow and resource allocation.