Pipeline Growth Rate
TL;DR
Pipeline Growth Rate measures the rate at which your sales pipeline is increasing (or decreasing) over time. It tells you whether your team is building enough new pipeline to support future revenue targets. For SaaS sales teams, especially those with multi-quarter sales cycles, this is a leading indicator of future performance — and a warning sign when pipeline creation is falling behind.
What is Pipeline Growth Rate?
Pipeline Growth Rate tracks the percentage change in total pipeline value over a defined period (typically month-over-month or quarter-over-quarter).
Formula:
Pipeline Growth Rate (%) = ((Current Period Pipeline – Previous Period Pipeline) ÷ Previous Period Pipeline) × 100
Example: If your pipeline value this quarter is $1.2M and it was $1M last quarter, your growth rate is 20%.
This can be tracked for:
- Individual reps
- Teams or segments
- Entire GTM orgs
- You can also break it down by:
- Net new pipeline
- Expansion pipeline
- Outbound vs. inbound pipeline sources
Why It Matters in B2B SaaS
- It’s a future bookings indicator. If pipeline isn’t growing, revenue will stall in upcoming quarters.
- It helps measure top-of-funnel momentum. Especially useful when bookings are flat but activity is rising.
- It supports sales and marketing alignment. Are enough qualified leads being generated and converted into opportunities?
- It aids capacity and headcount planning. Rapid pipeline growth may justify hiring more reps or solution engineers.
- It keeps pressure on pipeline generation. AEs aren’t just closers — they’re pipeline builders.
How to Measure Pipeline Growth Rate
- Capture total pipeline value at the end of each period (month or quarter)
- Compare current period to previous period
- Apply the growth rate formula
- Optionally, break down by:
- Segment (SMB, Mid-market, Enterprise)
- Source (Marketing, Outbound, Partner)
- Rep or region
Best Practices
- Track both total and net new growth. Net new pipeline shows true momentum; total includes carryover deals
- Segment by sales motion. Outbound pipeline typically grows slower than inbound — and that’s okay
- Align pipeline creation targets with quota. Reps should know how much new pipeline they need to build each month
- Use CRM snapshots or automation tools to record pipeline at regular intervals
- Monitor aging deals. Growth should come from new qualified opps, not bloated old ones
Final Thought
In sales, what you’re building today drives your success tomorrow. Pipeline Growth Rate is your early warning system — a drop now means missed targets later. Whether you’re in an outbound SDR team or managing a region, staying proactive on this metric keeps your revenue engine running smoothly.
FAQs
What’s a healthy pipeline growth rate?
Depends on your sales cycle and target coverage. Generally, 15–25% QoQ growth is strong in most SaaS segments.
Should pipeline growth include recycled opps?
Only if they’re truly re-qualified. Don’t inflate growth by relabeling old stalled deals.
How does pipeline growth relate to bookings?
Bookings follow pipeline. If pipeline is flat, bookings will eventually flatten too — especially in longer cycles.
Can RevOps automate this metric?
Yes. Use CRM reporting tools or snapshot apps like InsightSquared or Clari to track period-over-period pipeline data.
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