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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.
Pipeline
Short Definition
A visual representation of active opportunities by sales stage used for forecasting and execution.
Definition
The sales pipeline visualizes all active opportunities organized by sales stage, from qualification to close. Most teams count only open opps in "current pipeline," though post-sale expansion often extends the formal pipeline definition.
Pipelines drive forecasting, capacity planning, and sales execution for scaling B2B orgs.
Why Pipeline Matters
- Enables accurate revenue forecasting.
- Reveals coverage gaps and execution risks.
- Guides hiring, quota, and territory decisions.
- Measures sales productivity and velocity.
- Identifies process bottlenecks by stage.
How to Build Pipeline Visibility
- Define 5-7 clear sales stages with buyer + seller milestones.
- Require evidence for stage progression (meeting notes, docs).
- Set pipeline generation targets by rep/team.
- Review weekly: inspect age, velocity, conversion rates.
- Maintain 3-4x quota coverage across all stages.
Pipeline Health Dashboard
Key Metrics
- Pipeline coverage ratio.
- Opp velocity (days-to-close).
- Stage conversion rates.
- Pipeline generation rate.
- Forecast category distribution.
Common Mistakes
Frequently Asked Questions
What’s the difference between pipeline and forecast?
Pipeline = all open opps
Forecast = subset likely to close
Ideal number of stages?
5-7 balances visibility without over-complication.
What counts as pipeline coverage?
Weighted value of open opps ÷ quota (3-4x target).