Pipeline Coverage
The value of qualified open pipeline compared with the new revenue target for the same period.
Formula
Qualified pipeline value ÷ New revenue target
Why Track It
Coverage is the early warning on next quarter's new revenue. Too little pipeline tells the owner to fund marketing or prospecting now, while there is still time to close.
How It Is Measured
Sum the value of qualified open opportunities expected to close in the period (use monthly recurring value times contract months, or new MRR, consistently). Divide by the new revenue or new MRR target for that period. Exclude opportunities with no activity in the last 30 days. Source: the CRM pipeline report.
Constraints
Stale or unqualified deals inflate it. It is only as good as the win rate used to set the target.
Measurement Note
PipelineGrader notes the common 3x rule assumes a 33% win rate and that a 25% win rate needs about 4x. The target is 1 divided by your own historical win rate, so an MSP winning 40% of qualified deals needs about 2.5x.
Referenced In
Related KPIs
- Managed Services Revenue GrowthThe year over year percentage change in managed services revenue, from new clients and from growth inside existing ones.
- Win RateThe share of qualified sales opportunities that close as won in a period.
- Sales Cycle LengthThe average number of days from first qualified contact to a signed agreement for new clients.
More in Sales and Growth
How efficiently the MSP turns opportunities into new recurring revenue. These numbers show whether the pipeline can carry the growth target and what each new client costs to win.
- CAC Payback PeriodOwner
- Client Lifetime Value to CAC RatioOwner
- Managed Services Revenue GrowthOwner
- Sales Cycle LengthSales Manager
- Win RateSales Manager