Sales process
Sales pipeline
A sales pipeline is a visual representation of all open deals organized by the stage they are in, giving reps and managers a snapshot of upcoming revenue and where deals stand.
In short
- A sales pipeline is a visual representation of all open deals organized by the stage they are in, giving reps and managers a snapshot of upcoming revenue and where deals stand.
What a sales pipeline is
A sales pipeline shows every open opportunity arranged by the stage it occupies in the sales cycle, typically as columns in a CRM. At a glance, a rep can see how many deals are in discovery, how many are in negotiation, and what total value is in play.
The pipeline is the operational view of selling. It drives forecasting, highlights where deals are stuck, and shows whether a rep has enough early-stage activity to hit future targets.
Pipeline health and the forecast
A healthy pipeline has enough volume at each stage to produce the needed wins, given typical conversion rates, and deals that are progressing rather than aging in place. Managers watch pipeline coverage, the ratio of pipeline value to quota, to judge whether a target is reachable.
Pipeline is closely tied to forecasting but is not the same thing. The pipeline is all open deals by stage; the forecast is a judgment of which of those will actually close in a period. Accurate qualification keeps both honest.
Frequently asked
What is a sales pipeline?
- A sales pipeline is a visual representation of all open deals organized by their stage in the sales cycle, giving a snapshot of where deals stand and what revenue is upcoming.
What is the difference between a sales pipeline and a forecast?
- A sales pipeline shows all open deals by stage, while a forecast is a prediction of which of those deals will actually close in a given period. The pipeline is the input; the forecast is the judgment.
What is pipeline coverage?
- Pipeline coverage is the ratio of total pipeline value to the quota a rep or team needs to hit. Managers use it to judge whether there is enough opportunity in play to reach the target given typical win rates.