The goal of this documentation is to provide you with an overview of the Pipeline Management tools from the Sales Analytics team.
Pipeline is the sum of all open sales opportunities and is one of the key metrics that helps us to consistently hit our targets. It is one of the leading indicators of the health of our business and it informs us on our sales motion dynamics.
Pipeline coverage is a ratio between our pipeline and our business target. We track pipeline coverage at different stages of the sales funnel for current and future quarters. We calculate historical pipeline coverages (to actuals) and use them as a baseline to compare with our current (and future) quarters coverage. That way, we can answer the question "Do we have enough pipeline?" with confidence.
Our standard pipeline coverage calculation is defined as
Open Pipe Net ARR
/ Remainder to Target amount (to date in a given quarter)
and Remainder to Target is defined as
Target Net ARR
- Booked Net ARR (to date in a given quarter)
.
For future quarters, the calculation would be
Open Pipe Net ARR
/ Target Net ARR
as there won’t be any Booked Net ARR yet.
Unless otherwise stated, Pipeline coverage is calculated with the definition above.
We also calculate pipeline coverage against actuals to calculate historical coverage values.
Pipeline coverage against actuals is defined as
Open Pipe Net ARR with Stage X+ at day Y
/ (Total Booked Net ARR
- Historical Booked Net ARR at day Y
)
The inverse of historical pipeline coverage against actuals is the historical win rate at that point in time.
Purpose | Name | Contents | Link |
---|---|---|---|
Provides a high-level overview of quarterly metrics | SS&A - Pipeline Velocity & Generation |
|
|
Provides deep dives and detailed view of selected metrics | SS&A - Pipeline Coverage Deep Dive |
|
[SS&A - Pipeline Coverage Deep Dive](https://app.periscopedata.com/app/gitlab:safe-dashboard/919352/SS&A---Pipeline-Coverage-Deep-Dive) |
SS&A - Pipeline Generation Deep Dive |
|
[SS&A - Pipeline Generation Deep Dive](https://app.periscopedata.com/app/gitlab:safe-dashboard/968894/SS&A---Pipeline-Generation-Deep-Dive) | |
SS&A - Pipeline Movement Tracker |
|
[SS&A - Pipeline Movement Tracker](https://app.periscopedata.com/app/gitlab:safe-dashboard/919348/SS&A---Pipeline-Movement-Tracker) | |
Provides operational insights and action items on current and future quarters | Pipeline X-Ray: Current & Next Quarters Overview |
|
[GTM Analytics Hub](https://app.periscopedata.com/app/gitlab:safe-dashboard/919263/Go-To-Market-Analytics-Hub-v1.0) Please find the link under Net ARR/Pipeline section |
SAL Heatmap |
|
[GTM Analytics Hub](https://app.periscopedata.com/app/gitlab:safe-dashboard/919263/Go-To-Market-Analytics-Hub-v1.0) Please find the link under Net ARR/Pipeline section |
</table>
### Examples - Data Interpretation
#### Historical Coverages and Win Rate
To define a baseline of how "Good Enough Pipeline" looks like, we use calculated historical coverage curves of pipeline vs actuals.
Those curves, compare pipeline at that point in time (from the historical date perspective) vs the total bookings of that quarters (instead of the target). That way, we have a historical representation of how much pipeline was needed on that quarter to close its actual bookings. One interesting fact is that the inverse of the historical pipeline coverage vs actuals is our "Win Rate".
Pipeline Coverage against Actual (for historical quarters):