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ayeQ Answers: Understanding Sales Pipeline Size

RevOps
What is your pipeline telling you about your future bookings? You may use the rule of thumb for pipeline size – 3x your bookings target. But is that really the right size? Often B2B executives make the mistake of using the current year bookings target as the basis for determining the pipeline size requirement. However, in B2B, where sales cycles are long and complex, you are probably spending most of the year building pipeline for next year. And if you want to grow year over year, that pipeline size needs to feed this year’s bookings target plus the desired growth. Also, the 3x multiple is often incorrect. The real multiple is based on the conversion rates of each sales stage, and the timing of when those stages progress. That’s why having a RevOps model is so important. The ayeQ RevOps model automatically does your growth and time adjustments so you know what your pipeline size needs to look like in every quarter.

ayeQ Models the Pipeline

ayeQ RevOps models create a complete picture of what your pipeline needs to look like at any given time – adjusted for sales cycle time and annual growth. If your pipeline looks like this, and the model is correct, you will hit your bookings. RevOps Modeling

ayeQ Provides Pipeline Size Targets

Based on the model and average deal size, ayeQ tells you what your pipeline needs to look like at any given time – by deal count and pipeline value. The required pipeline size may change quarter to quarter, as you start building pipeline for next year (with a higher bookings target). If you are running your sales organization against a current model, ayeQ will give you early warnings of bookings risk, and prioritizes the areas of focus that will get you back on track. RevOps Pipeline Size Targets Find out more about how ayeQ can help you understand your sales pipeline size and hit your numbers every time.

“I’ve missed 2 quarters out of 30, and our forecast accuracy has a ± 5% to 8% variance. The discipline applied towards RevOps has allowed us to apply a model with a large enough pipeline that we are highly accurate. Our board has said they run 30 portfolio companies, and they’ve never seen that level of consistency in the market.” 

– Greg Jones, CRO, Bizzdesign