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RevOps Leaders: Perfecting Pipeline Coverage for Next Quarter
Revenue Predictability
Sales Efficiency

RevOps Leaders: Perfecting Pipeline Coverage for Next Quarter

Saahil Dhaka
Saahil Dhaka,CEO at Clientell
3 mins read
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Picture this: you're a RevOps leader at a burgeoning tech company, and it’s a sunny Tuesday morning. As you take the first sip of your freshly brewed coffee, your mind is already racing with thoughts of revenue targets for the next quarter. You recall the age-old adage: fill your pipeline with 3X your revenue targets and you’re set. But wait, is this formula carved in stone? Let's embark on a journey to find out.

What is Pipeline Coverage?

First, let's unravel the mystery of pipeline coverage. In simple terms, it’s the sum of all your sales opportunities compared to your revenue target. If your revenue target is $1 million and you have $1 million in your pipeline, you have 1X pipeline coverage. To meet your quota, you’d need to close every deal. However, if your pipeline is $3 million, that’s 3X pipeline coverage.

Forecast Coverage: The Smarter Cousin

There's a smarter cousin of pipeline coverage we must meet - forecast coverage. Unlike pipeline coverage which includes all potential opportunities, forecast coverage takes a more focused approach. It considers historical win rates and generates a weighted forecast for each opportunity. For example, if you have a $1 million quota and 3X pipeline coverage, but after considering historical win rates your forecast is $700,000, your forecast coverage would be 70.

Discovering Your Magic Number

As a vigilant RevOps leader, you realize that the standard 3X rule is not a universal truth. The ideal pipeline coverage can vary depending on several factors including your product, the market segments you serve, the length of your sales cycles, and many other elements.

If your sales process is highly efficient and your team is closing deals effectively, you might not need 3X coverage. Perhaps, 1.5X or 2X coverage will do. However, if your team is not operating at its best, you might need 4X or even 5X coverage.

Charting the Course: Creating a Strategic Action Plan

Inspired by these insights, you decide to create a strategic action plan. Instead of merely instructing your sales reps to maintain a certain pipeline coverage, you set specific expectations and action items. You decide that regular monitoring and feedback are essential.

Your action plan includes:

  1. Analyzing Past Data: Understand historical win rates and the average deal sizes to predict future outcomes.
  2. Setting Clear Expectations: Clearly communicate the desired pipeline coverage to the sales team, and explain why it’s important.
  3. Weekly Check-ins: Hold weekly meetings to review pipeline health and provide coaching and feedback.
  4. Leveraging Tools and Technology: Use CRM and Clientell to track pipeline metrics and make data-driven decisions.

As you embark on this adventure, remember that the tides of sales are ever-changing. A RevOps leader’s true prowess lies in the ability to navigate through the ever-changing currents with agility and acumen. So, chart your course wisely and set sail toward new revenue horizons.

Learn how to accurate forecasts can save you from market downturns.

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