It’s critical to tailor pipeline coverage ratios not only to the specific business, but also–as historical data grows and sales ops methods become more sophisticated–to individual reps, deal types, and time periods.
The Wrath of an Overinflated Pipeline
Reverse Engineering a Solution
It was like driving a car without a gas gauge — we had no idea how much fuel was left in the tank 60-90 days out.
First, find for the Ideal Value in Each Sales Stage
Ideal Value in Each Sales Stage = Quota x ((Avg Sales Cycle / Days Remaining to End of Quarter) x (Sales Cycle by Stage/Average Sales Cycle)) / Win Rate from Stage
Then, find for the Ideal Number of Opportunities in Each Sales Stage
Ideal Value in Each Sales Stage = Divide Ideal Value in Each Stage by Average Open Opp Value (Forward 90 Days)