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Practical, opinionated writing on how B2B tech companies win and keep enterprise customers. By Colin Constantine.

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Pipeline

How much pipeline do you actually need?

A simple way to work out pipeline coverage from your own numbers, and what to do when you are short.

Colin Constantine, PrincipalOctober 20265 min read
A pipeline running through green hills
Photo: GWANGJIN GO on Unsplash

"Three times coverage" is one of the most repeated rules in B2B sales. It is a reasonable starting point, but it is a guess. The right number for your team depends on your own win rate, deal size and sales cycle, and you can work it out in an afternoon.

Start with your win rate

Take every opportunity that reached a qualified stage in the last four quarters and divide the number you won by the total. Then do the same by value. If the value win rate is much lower, large deals close less often than small ones, which matters when you plan.

If your win rate is 25 percent, you need four times your target in qualified pipeline to hit it on average. At 40 percent, you need two and a half times. That is your real coverage ratio. Benchmarks move, which is why your own numbers matter more: Ebsta’s 2024 data showed win rates down 7 percent on the previous year while total pipeline grew 25 percent, exactly the kind of shift a fixed rule of thumb misses.

Account for timing

Pipeline only counts if it can close in the period. Look at your average sales cycle from qualification to signature. A deal that entered pipeline more recently than that is unlikely to close this quarter, so count it toward next quarter instead.

Work backwards to activity

Once you know how much pipeline you need, you can work out how much to create:

  • Divide the quarter's revenue target by your average deal size to get the number of deals to win.
  • Divide that by your win rate to get the qualified opportunities needed.
  • Divide that by your meeting-to-opportunity rate to get the first meetings needed.
  • Spread those meetings across the weeks available, allowing one sales cycle before quarter end.

Do this for each source as well. If half your pipeline comes from inbound, a quarter from outbound and a quarter from partners, give each its own weekly number. It shows quickly which channel has to carry the load if another falls short.

Check the quality

Coverage only helps if the pipeline is real. Each quarter, review the deals that were lost or slipped and ask whether they should have been counted at all. Common signs of inflated pipeline include:

  • No meeting yet with anyone who can make the decision.
  • A close date at the end of the quarter with no reason from the buyer.
  • No change of stage in twice the normal cycle time.
  • Deals kept open because closing them would hurt the number.

Clearing these out lowers coverage on paper and makes the number far more useful.

When you are short

If coverage is below what you need, there are three levers, and they work at different speeds:

Tell leadership early. A shortfall flagged six weeks before quarter end can still be partly fixed. One flagged in the last week usually cannot.

Review it every week

Track coverage weekly for this quarter and the next. Next quarter's number is your early warning. If it looks thin six weeks out, there is still time to act.

Sources and further reading

Not sure where to start?

Take the 1-minute sales diagnostic.

Take the diagnostic

Work with Coltasa

Talk it through with Colin.

Book a 30-minute call
coltasa. B2B sales strategy
& execution
All insights

Pipeline

How much pipeline do you actually need?

A simple way to work out pipeline coverage from your own numbers, and what to do when you are short.

Colin Constantine, PrincipalOctober 20265 min read
A pipeline running through green hills
Photo: GWANGJIN GO on Unsplash

"Three times coverage" is one of the most repeated rules in B2B sales. It is a reasonable starting point, but it is a guess. The right number for your team depends on your own win rate, deal size and sales cycle, and you can work it out in an afternoon.

Start with your win rate

Take every opportunity that reached a qualified stage in the last four quarters and divide the number you won by the total. Then do the same by value. If the value win rate is much lower, large deals close less often than small ones, which matters when you plan.

If your win rate is 25 percent, you need four times your target in qualified pipeline to hit it on average. At 40 percent, you need two and a half times. That is your real coverage ratio. Benchmarks move, which is why your own numbers matter more: Ebsta’s 2024 data showed win rates down 7 percent on the previous year while total pipeline grew 25 percent, exactly the kind of shift a fixed rule of thumb misses.

Account for timing

Pipeline only counts if it can close in the period. Look at your average sales cycle from qualification to signature. A deal that entered pipeline more recently than that is unlikely to close this quarter, so count it toward next quarter instead.

Work backwards to activity

Once you know how much pipeline you need, you can work out how much to create:

  • Divide the quarter's revenue target by your average deal size to get the number of deals to win.
  • Divide that by your win rate to get the qualified opportunities needed.
  • Divide that by your meeting-to-opportunity rate to get the first meetings needed.
  • Spread those meetings across the weeks available, allowing one sales cycle before quarter end.

Do this for each source as well. If half your pipeline comes from inbound, a quarter from outbound and a quarter from partners, give each its own weekly number. It shows quickly which channel has to carry the load if another falls short.

Check the quality

Coverage only helps if the pipeline is real. Each quarter, review the deals that were lost or slipped and ask whether they should have been counted at all. Common signs of inflated pipeline include:

  • No meeting yet with anyone who can make the decision.
  • A close date at the end of the quarter with no reason from the buyer.
  • No change of stage in twice the normal cycle time.
  • Deals kept open because closing them would hurt the number.

Clearing these out lowers coverage on paper and makes the number far more useful.

When you are short

If coverage is below what you need, there are three levers, and they work at different speeds:

Tell leadership early. A shortfall flagged six weeks before quarter end can still be partly fixed. One flagged in the last week usually cannot.

Review it every week

Track coverage weekly for this quarter and the next. Next quarter's number is your early warning. If it looks thin six weeks out, there is still time to act.

Sources and further reading

Not sure where to start?

Take the 1-minute sales diagnostic.

Take the diagnostic

Work with Coltasa

Talk it through with Colin.

Book a 30-minute call