For B2B SaaS companies, the sales pipeline is the lifeblood of growth. Yet, executives often use more art than science in determining the required size of that pipeline. “3X” is a legacy pipeline multiple (of target bookings) benchmark that has persisted from the days of using spreadsheets to set sales targets. Spreadsheets break down when it comes to complex revenue stream modeling, with multiple teams, products, sales processes and other attributes. Spreadsheets can’t accurately size the pipeline given year-over-year growth objectives, complex sales cycles, seasonality, and sales velocity. So, “3X” has remained a safe placeholder.
Many executives set annual bookings targets based on past bookings, aspirational growth objectives, or even gut instinct – without understanding the actual required size of the sales pipeline. That approach often creates a disconnect between sales goals and the team’s ability to achieve them.
Today, data-driven companies no longer guess or hope when it comes to bookings targets – and they understand the required pipeline size with precision.
From Guesswork to Precision: A RevOps Approach
Modern RevOps modeling provides the answer. By analyzing metrics like sales velocity, growth objectives and seasonality – across all your revenue streams – you can calculate the exact pipeline size you need now and in future quarters. This approach doesn’t just predict performance; it offers transparency and alignment across your entire organization.
Unlike traditional forecasting, which typically looks backward, RevOps models leverage real-time data to project forward. If your current pipeline won’t support your bookings targets, these models pinpoint where the bottlenecks are—whether it’s lead generation, stage-to-stage conversion rates, or win rates—and show you exactly where to focus your improvement efforts.
A Fundamental Shift in Annual Growth Planning
Imagine walking into your annual planning meeting armed not with speculation but with data-backed insights. RevOps models don’t just help you predict whether you’ll hit your numbers—they help you see why you will or won’t. And, crucially, they show you what levers to pull to close the gap.
This fundamentally changes the conversation around growth planning. Instead of debating optimistic goals versus conservative estimates, your team can evaluate investment alternatives to close the gaps identified in the model – whether it is marketing investment, additional sales capacity, or training and systems.
Why This Matters for the C-Suite
- CEOs: Gain confidence in growth targets and consistently meet Board expectations.
- CFOs: Align budgets and resources according to RevOps model-based requirements.
- CROs: Focus on closing performance gaps rather than chasing unrealistic pipeline metrics.
- CMOs: Optimize marketing spend for the leads that matter most to pipeline health and closed bookings.
- RevOps Leaders: Elevate your role as the architect of predictable, sustainable growth.
The New Standard for Pipeline Planning
In today’s competitive B2B SaaS landscape, hoping for growth isn’t enough. Predicting it is the new standard, and acting on those predictions with precision is the key to winning. A sales pipeline built on data, not guesswork, ensures your growth objectives are more than aspirations—they’re achievable realities.
RevOps isn’t just a tool; it’s a mindset. For companies ready to move beyond speculation and into scalable growth, the ability to model, measure, and manage your pipeline is the first step. Whether you’re planning for the next quarter or the next 2 years, the question isn’t just how big your pipeline should be—it’s whether it’s big enough to deliver the results you need.
Find out more about how you can apply RevOps modeling to scale your growth in a more predictable, consistent way. Schedule a complimentary consultation.
