Pipeline Coverage
Also: Pipeline Coverage RatioCoverage Ratio
The ratio of open pipeline value to your revenue target, showing whether you have enough in play to hit the number.
Why it matters
Coverage tells you, before the quarter ends, whether there is enough pipeline to plausibly make target given your win rate. It is a forward-looking check that prevents nasty surprises. Too little coverage means a likely miss, too much may mean inflated or unqualified pipeline.
How it is calculated
Pipeline Coverage = total open pipeline value / revenue target for the period
What good looks like
A common rule of thumb is roughly 3x to 4x coverage, but the right number is dictated by your actual win rate: a 25 percent win rate needs about 4x, a 50 percent win rate about 2x. Using a generic 3x without checking your win rate is how teams miss while looking covered.
Related terms
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