Velocity Selling: Blessing for Real Estate Developers

India is transforming! So does the face of its cities. But such a dynamic scenario of growing real estate development and construction activities comes up with its own set of challenges. One of the most important challenges facing the real estate sector is that of cut-throat competition among various real estate developers to mobilize the ‘potential client base’ Into the ‘actual client base’. In this situation, the process of finding, retaining, and conversion of potential clients into actual clients has achieved great importance. Since the competition in the real estate sector is increasing day by day, the retention time of clients is also reducing substantially. That’s where the idea of ‘velocity selling’ has acquired much currency in recent times. Various real estate sole selling firms are acquiring the practice of velocity selling.

Let’s understand what velocity selling is

What is sales velocity?

Sales velocity is the measurement of how quickly a prospective customer moves through a company’s sales pipeline and generates revenue. Sales velocity is extremely useful in sales forecasting. This velocity selling helps real estate companies streamline the potential quality customers, designing the public campaign to create strong demand for their real estate projects. This can help real estate developers reform and reset their business functions.

Sales velocity formula

Sales velocity is simple to calculate as long as you understand the components of the formula

Hence sales velocity formula is –

Sales velocity(V) = [Numer of opportunities (#) x Deal value ($) x Win rate (%)] ÷ Sales cycle length (L)
i.e
V=[# x $ x %] ÷L

Where,

  • Several opportunities (#): This is the number of qualified leads in your selling process. Here one must understand that recognizing quality client leads are important. It Is because only good quality leads have more possibility to convert into the actual client.
  • Deal value ($): This is the average size (or value) of the deal you present to your potential client.
  • Win rate (%): You can determine your win rate by dividing the total number of sales won by the total number of opportunities (#). Just like several opportunities, your win rate grows healthier as you qualify your leads.
  • Sales cycle length (L): It is a timeline needed to transform potential clients into actual clients. Every sales representative wants to shorten the sales cycle as short as possible.

Importance of the Velocity Selling

One must understand that from the outside we may think that a real estate company is selling its inventories and generating profits, but in fact, it may be going through many internal hiccups as far as conversion of the ‘potential client’ into ‘actual client’ is concerned. There may also be issues around the waste of time, longer sales cycle length, a smaller number of quality leads, etc. The selling done through velocity selling helps us understand these limitations in much clarity. Velocity selling can be used to monitor how much inventory real estate construction is ready with at a particular moment and when there could be demand and supply mismatch. So, one can say that with velocity selling; one can track the customer status from being a potential client to an actual client of the real estate project.

Following are the benefits of velocity selling

  • It Increases your number of potential opportunities

Leads are clients who have expressed interest in your business or product. With velocity selling, we ensure quality opportunities that convert into quality leads for potential clients.

  • Boost your average deal size

Through velocity selling, ‘choke points’ of the selling can be identified in such a way that deal size can be refigured in the favor of the real estate developer

  • Focus on conversion points to improve your win rate

Velocity selling can help figure out the reasons why potential clients are leaving. This can help you to better address the problems of client fallout.

  • Shorten your sales cycle

Shortening the sales cycles doesn’t mean that we should aggressively push the potential client to buy our services or products, but address those issues which hinder them to make effective decisions quickly in the first place.

Importane of the Velocity Selling

One must understand that from the outside we may think that a real estate company is selling its inventories and generating profits, but in fact, it may be going through many internal hiccups as far as conversion of the ‘potential client’ into ‘actual client’ is concerned. There may also be issues around the waste of time, longer sales cycle length, a smaller number of quality leads, etc. The selling done through velocity selling helps us understand these limitations in much clarity. Velocity selling can be used to monitor how much inventory real estate construction is ready with at a particular moment and when there could be demand and supply mismatch. So, one can say that with velocity selling; one can track the customer status from being a potential client to an actual client of the real estate project.

Following are the benefits of velocity selling

  • It Increases your number of potential opportunities

Leads are clients who have expressed interest in your business or product. With velocity selling, we ensure quality opportunities that convert into quality leads for potential clients.

  • Boost your average deal size

Through velocity selling, ‘choke points’ of the selling can be identified in such a way that deal size can be refigured in the favor of the real estate developer

  • Focus on conversion points to improve your win rate

Velocity selling can help figure out the reasons why potential clients are leaving. This can help you to better address the problems of client fallout.

  • Shorten your sales cycle

Shortening the sales cycles doesn’t mean that we should aggressively push the potential client to buy our services or products, but address those issues which hinder them to make effective decisions quickly in the first place.