Glossary
Pipeline generation
Pipeline generation is the work of creating new qualified sales opportunities, through outbound prospecting, inbound marketing, events, partners and existing customers, so that sales has enough open deals to hit future revenue targets.
What Is Pipeline Generation?
In short Pipeline generation is measured in opportunities and dollars, not leads.
Targets work backwards from revenue: if the team must close $1M next quarter, wins 25% of qualified opportunities and has an average deal of $25,000, it needs 160 new opportunities worth $4M, created early enough to close in time.
Sources are usually split into marketing-sourced, SDR or outbound-sourced, AE self-sourced, partner-sourced and customer expansion. Tracking each one separately shows which are reliable and what each opportunity costs.
Pipeline Generation Example
Pipeline needed = revenue target / win rate. Opportunities needed = revenue target / (average deal size x win rate)Example: an SDR team of 4 has a target of $600,000 in new pipeline a month. Each SDR books about 15 qualified meetings a month, half become opportunities and the average opportunity is $20,000: 4 x 15 x 0.5 x $20,000 = $600,000.
Pipeline Generation in Practice
Outbound is the source a team controls most directly: you choose the accounts, the volume and the timing. That is why many teams give SDRs a pipeline target, measured in qualified meetings or opportunities created per month, rather than a count of emails or calls.
FAQ
What is the difference between pipeline generation and lead generation?
Lead generation collects contacts and is measured by volume. Pipeline generation produces qualified opportunities with a stage, amount and close date, and is measured in dollars.
What does pipegen mean?
Pipegen is short for pipeline generation, the work of creating new qualified sales opportunities.
How do you measure pipeline generation?
By the number and dollar value of qualified opportunities created per period, split by source (outbound, inbound, partners, expansion), and by how many of them close.
How much pipeline do you need to hit your target?
Divide the revenue target by your win rate. To close $500,000 at a 25% win rate, you need about $2M in qualified pipeline.
Do This in Ken
Do This in Ken
Campaigns runs the outbound side of pipeline generation: Ken Search finds the accounts, email and LinkedIn sequences reach them and Inbox collects the replies.
- Module
- Campaigns
- Open in Ken
- /free-campaign
The new Ken opens to the waiting list in batches.
Related
Sources
| Source | Checked |
|---|---|
| Salesforce: What is a sales pipeline | |
| Outreach: Pipeline coverage calculation and benchmarks |
Changelog
- Page published.