Sales Funnel Stage – Evaluate
Introduction: The Dollar Value of Pipeline vs. Revenue Goal is a critical metric during the Evaluate stage. It indicates the ratio between the pipeline’s value and upcoming revenue targets.
Importance: This metric provides a snapshot of pipeline coverage and helps ensure that the pipeline is sufficiently robust to meet revenue goals. A healthy ratio is typically 3 to 4 times more pipeline value than the quota.
Measurement: Calculate the dollar value of the pipeline and compare it to the revenue goal. Regularly assess and adjust pipeline strategies to maintain a healthy coverage ratio.
Challenges: Challenges may arise in accurately forecasting revenue goals and assessing the potential value of the pipeline. Regular collaboration between sales and finance teams is essential to address this challenge.
Typical Range for Good Results: A healthy pipeline coverage ratio is generally 3 to 4 times the revenue goal. Consistent monitoring and adjustments ensure alignment with overall revenue objectives.
