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