How To Increase Your B2B Pipeline Coverage

Every great Go-To-Market Leader and CEO that I've worked with have obsessed over pipeline coverage. Pipeline coverage is that thing that can be one of the greatest predictors of whether you're going to be able to hit your number, whether you're going to be successful or not. And yet most of the gurus don't really talk about it. But pipeline coverage, when you start to calculate it, when you start to apply it to how you think about your go-to-market machine, can be the difference maker on whether you hit your number or not.

In this post, I'm going to walk you through the three principles that you absolutely need to know about SaaS pipeline coverage. And when you follow these principles, you'll be able to ensure that you actually hit your number and accelerate your path to that next stage of growth.

Principle 1: What is Pipeline Coverage?

Pipeline coverage is calculated by multiplying your target number by a certain number. You want to have 5X pipeline coverage, meaning if your target is a million dollars, you want to have 5 million dollars of pipeline. This ensures that you have enough pipeline to hit your target even if your average win rate is 20%.

To give you an example, let's say your target is $500,000, and your average win rate is 20%. This means you need to have $2,500,000 in pipeline coverage. This might seem like a lot, but it's important to have this amount to ensure that you hit your target.

Principle 2: How to Calculate Pipeline Coverage

To calculate pipeline coverage, multiply your target number by 5. This will give you the amount of pipeline coverage you need to hit your number even if your average win rate is 20%.

It's important to note that this is just a general rule of thumb. Depending on your business, you may need more or less pipeline coverage. The important thing is to track your pipeline coverage over time and adjust accordingly.

Principle 3: How to Use Pipeline Coverage to Ensure Success

By tracking your pipeline coverage, you can ensure that you are on track to hit your number. If you have less than 5X pipeline coverage, you need to focus on building more pipeline. This could mean increasing your marketing efforts, improving your lead generation tactics, or increasing your sales team's activities.

If you have more than 5X pipeline coverage, you can start to focus on improving your win rate. This could mean improving your sales process, providing better training to your sales team, or focusing on higher-quality leads.

Remember, pipeline coverage is the key to hitting your number. By following these three principles, you can ensure that you have enough pipeline to hit your target and accelerate your path to that next stage of growth.

Conclusion

Calculating and tracking your pipeline coverage may seem like a daunting task, but it's essential to your business's success. By following the three principles outlined in this post, you can ensure that you have enough pipeline to hit your target and achieve your business goals.

So take some time to calculate your pipeline coverage, track it over time, and adjust your strategy accordingly. With the right focus and effort, you can achieve the pipeline coverage you need to drive growth and success for your business.

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