B2B Sales Glossary:

Sales Pipeline

Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.

Opportunity

Short Definition

A qualified prospect actively progressing through the sales process with forecastable revenue potential.

Definition

An opportunity (or "opp") represents a qualified prospect who's engaged, budget-aligned, and progressing through your sales process. Different orgs set unique criteria, but all opps forecast potential revenue based on stage and close probability.

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Opps live in CRM systems and drive pipeline analysis, forecasting, and capacity planning.

Why Opportunities Matter

  • Convert vague leads into forecastable revenue.
  • Enable pipeline coverage ratios and forecasting accuracy.
  • Prioritize seller focus on highest-potential deals.
  • Track sales effectiveness across stages.
  • Inform hiring and quota setting.

How to Create Opportunities

  1. Confirm BANT (Budget, Authority, Need, Timeline) or MEDDPIC criteria.
  2. Get explicit buyer commitment to next steps.
  3. Create opp record with stage, value, close date, probability.
  4. Link to account, contacts, and supporting activities.
  5. Set realistic weighted value and forecast category.

Key Metrics

  • Opp-to-closed-won conversion rate.
  • Average opp age by stage.
  • Pipeline coverage ratio (3-4x quota typical).
  • Opp velocity (stage progression speed).
  • Forecast accuracy by opp stage.

Common Mistakes

Mistake Fix
Creating opps too early Require buyer meeting & next steps commitment
Inflated values/probabilities Use conservative estimates & historical benchmarks
Orphaned opps Require weekly pipeline hygiene reviews
Stage gaming Tie stage progression to buyer actions, not seller hopes

Frequently Asked Questions

What’s the difference between a Lead and an Opportunity?

Leads = prospects to qualify

Opps = qualified deals to close

When does an opp become forecastable?

Typically 40-60% probability, per your org's forecast categories.

What about single vs. multi-threaded opps?

You should have one opp per deal, and multiple contacts per opp.

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