Pipeline Creation

What is Pipeline Creation?

Pipeline creation measures the total number of new opportunities that were added to the sales pipeline during a specific period. These opportunities represent potential deals that have entered the sales process and are being actively pursued by the sales team.

Why is Pipeline Creation Important to Measure?

Measuring pipeline creation is essential for assessing the growth and health of the sales pipeline. A healthy and steady pipeline creation rate is crucial for maintaining a consistent flow of potential deals and driving revenue growth. By analyzing the trends and patterns in pipeline creation, sales managers and executives can gain valuable insights into the overall performance of the sales team, identify potential strengths and weaknesses in lead generation strategies, and allocate resources more efficiently. Pipeline creation is a leading indicator of future revenue potential. A strong and growing pipeline can provide early indications of potential revenue growth, while a decline in pipeline creation may signal challenges in customer acquisition or market expansion.

How is Pipeline Creation Calculated?

To calculate pipeline creation, you need to sum the total value of new opportunities that were added to the sales pipeline during the specific period. Pipeline creation can be measured according to the number of opportunities (count), the amount of total contract value (TCV), or the amount of Annual Recurring Revenue (ARR) of these opportunities.

Formula

Pipeline Creation = ∑(Total value of opportunities that were created during the period)