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Gradient Works CEO, Revenue Enthusiast

You’re probably doing pipeline coverage wrong (I was), but this isn’t a 3x "rule" hot take. In this week’s Uncharted Territory, I went deep to demystify a misunderstood metric with some major help from Paul Stansik, the ideas of Dave Kellogg, my own mistakes and some math[1]. If having a chance to hit your number matters to you (and I hope it does), I highly recommend you read this. Here’s what’s inside: 1?? Why the 3x rule is like the baba yaga (but isn’t necessary wrong) 2?? How pipeline coverage answers 1 of the 2 key sales questions 3?? The right way to calculate it and why it’s not the inverse of win rate 4?? The importance of to-go[2] pipeline coverage for tracking progress 5?? Dealing with the pipeline hygiene dumpster fire 6?? Reporting and Paul Stansik’s concept of maintaining “fingertip feel” Special thanks to David Bannister, Ryan Milligan and Ray Rike for answering the call for thoughtful pipeline coverage content! ?? ?? Tap "View my Blog" by my name to go straight to the article. — [1] I got to use LaTeX in a post for sales leaders which makes me (and literally no one else) happy. [2] I resisted a H O T T O G O reference in the article, but not in this footnote

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Joe Ort

CEO, RevOps Inflection. We help drive growth through strategic RevOps

2 个月

This is great stuff. The only part missing (although it is referenced) is the historical coverage numbers against actual performance so you can see how well you're doing. A number without context isn't as helpful. If a majority of your closes come in month 3 of the quarter, it may be that 3x is ok for months 1 and 2 but it also may need to change throughout the quarter. I like that the template breaks out the data by stage. For enterprise motions, it's likely that the earlier stage stuff converts at a much lower rate so looking at the composition of the your pipeline is key. I've historically simplified it down from a presentation standpoint to see total pipeline coverage and active pipeline (later stages). This is the fun part of Ops!

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Michael McGowan

Transform New Sales Hire and Individual Seller Productivity with a Virtual Skills Studio.

1 个月

None of this works nor makes any sense unless you know what the ideal pipeline is for the period in the first place.

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Ray Rike

Enabling B2B SaaS companies to make better metrics-informed and benchmark-validated decisions using our industry benchmarks, primary research, events, media and advisory services to increase revenue growth efficiency

2 个月

Hayes Davis - the latest benchmarks on Pipeline Coverage Ratio from Q4-24 research...not yet published Key to point out that Win Rate is not the inverse of Pipeline Coverage Ratio - a topic that Dave Kellogg and I discussed on an episode of SaaS Talk with the Metrics Brothers benchmarkit.ai/saas-talk-1/is-pipeline-coverage-ratio-simply-the-inverse-of-win-rate%3F

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Ryan Milligan

VP of Sales, Marketing, and RevOps | Pavilion Startup CRO of the Year

2 个月

There certainly is a sweet spot in pipeline coverage IMO. While something like 10X might feel amazing, all the sudden you're overwhelmed by which opps to focus on and they all end up slipping.

Sam Jacobs

CEO @ Pavilion | Co-Host of Topline Podcast | WSJ Best Selling Author of "Kind Folks Finish First"

2 个月

I have to set aside the right amount of time for this and I shall as you name dropped some pretty important peeps :)

Paul Stansik

Partner at ParkerGale Capital | Private Equity Portfolio Operations | B2B Sales, Marketing, and Strategy | Writer

2 个月

Thanks for the love sir. Great article.

Dave Kellogg

EIR at Balderton Capital, Independent Consultant, Author of Kellblog, and Co-host of SaaS Talk.

2 个月

Thanks for the shout-out and the kind words. For those so motivated, here's a link to everything on Kellblog in the pipeline category and skimming through it, there really is a ton there on the subject. https://kellblog.com/category/pipeline/

Kris Amin

Sales Operations Analyst at SPINS

2 个月

When calculating To-Go Coverage, should early-stage deals be excluded from the calculation as the period approaches its end? Majority of these deals are either pushed to the next period and may inflate the coverage ratio or closed lost.

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Jacob Reynolds

AgTech Operations Manager | HubSpot Enthusiast | Grow Wize

2 个月

Do you have any recs for pipeline generation and/or coverage?

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