Channel Velocity Rate (CVR) has its roots in the familiar sales concepts of Lead Velocity Rate and Sales Velocity Rate. CVR shows you not just if your channel sales are growing but how quickly that growth is happening. Calculating Channel Velocity Rate gives you a single, consistent formula for setting growth targets and measuring lead generation and sales effectiveness; this formula can be applied to the entire channel program or to a channel manager, partner, or partner sales rep.
In short, channel velocity rate is equal to your active partners rate (total number of active partners divided by the total number of partners), multiplied by the number of registered deals and referrals, multiple by the average deal size, and then multiplied by your close rate. All of that gets divided by the length of your sales cycle, or days in pipeline. Here’s what the equation looks like
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Conventionally, you might hear “partner engagement” defined as the number of partners in your program. When thinking about CVR, however, it’s not just how many there are, but what percentage are engaged. Quality is more important than quantity, and growing your base of engaged and active partners is key.
This is the total number of sales-accepted, qualified deals and referrals that have been registered in your system. To effectively measure channel velocity rate, we recommend that you do not including any deals, referrals, or other opportunities that have not been registered, as they do not appropriately reflect the type of engagement you’re looking for from your partners and should be discounted from the overall totals.
This is another easy and straightforward number you should be able to pull from your channel sales software to determine the average dollars that have been attached to each deal. For companies with larger deal sizes (5–9 figures), we recommend denoting numbers in thousands, hundreds of thousands, or millions. For example, $155,250 should be denoted as $1.55.
How many of deals in your channel pipeline that have been marked as “Closed-Won” or “Won”? Over time, as the number of deals in your pipeline increases, you may see your close rate decrease. However, if you’re able to increase the volume of deals while also maintaining or increasing the close rate, that shows that the training, enablement, and additional resources you're providing to your partners are having a positive impact
One of the most critical data points for measuring channel velocity rate and the controlling denominator of the entire formula is the length of your sales cycle—or days in
Your CVR, when tracked over time, provides you with a proven, effective, and