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:

1. Net new pipeline
2. Expansion pipeline
3. Outbound vs. inbound pipeline sources

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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.

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How to Measure Pipeline Growth Rate

1. Capture total pipeline value at the end of each period (month or quarter)
2. Compare current period to previous period
3. Apply the growth rate formula
4. Optionally, break down by:

• Segment (SMB, Mid-market, Enterprise)
• Source (Marketing, Outbound, Partner)
• Rep or region

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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

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