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Bottom Up by David Sacks: Key Sales Pipeline Metrics Simplified
1️⃣
Pipeline Generation MetricsOpportunities Created: Count of potential deals.
Pipeline Value Created: Total ARR (or TCV) value of these deals.
Win Rate: Percentage of deals closed (~20% is standard).
2️⃣
Pipeline Conversion MetricsSales Cycle Length: Time to close deals, often 6-9 months for complex B2B products.
Cohorted Win Rates: Analyze win rates by client cohorts; identify drop-off points and optimize support.
Stage Conversion Rate: Track how deals move through sales stages to find bottlenecks.
Average Time per Stage: Spot delays and improve pipeline flow.
3️⃣
Active Pipeline MetricsOpen Pipeline by Close Date: Forecast when deals will close and revenue will arrive.
Weighted Pipeline: ARR multiplied by the probability of closing, varying by stage.
Pipeline Waterfall: Visualize pipeline changes over time to pinpoint growth drivers.
#️⃣ These metrics provide a data-driven approach to refining your sales strategy and forecasting growth. Leverage tools like SaaSGrid to automate and visualize these insights.
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