How To Calculate Pipeline Coverage in HubSpot CRM | Arithmix

Calculating pipeline coverage is an essential process for any business that wants to stay on top of its sales game. It helps you understand how much potential revenue you have in your sales pipeline and how much of it is likely to close. This information is crucial for making informed decisions about your sales strategy and forecasting your revenue accurately.

What Is Pipeline Coverage?

Pipeline coverage is a metric that measures the ratio between the value of deals in your sales pipeline and your sales target. It tells you how much potential revenue you have in your pipeline compared to what you need to achieve your sales goals. In other words, it shows you how much cushion you have in your pipeline to meet or exceed your sales target.

For example, if your sales target is $100,000 for the quarter, and you have $200,000 worth of deals in your pipeline, your pipeline coverage is 200%. This means you have twice the amount of potential revenue in your pipeline than you need to meet your sales target.

Pipeline coverage is usually expressed as a percentage, and it's a dynamic metric that changes as deals move through your pipeline. As deals progress, they either move closer to closing or fall out of the pipeline, which affects your pipeline coverage.

When Is It Valuable To Calculate Pipeline Coverage?

Calculating pipeline coverage is valuable in several situations. Firstly, it helps you identify potential gaps in your pipeline and take corrective action before it's too late. If your pipeline coverage is low, it means you don't have enough potential revenue in your pipeline to meet your sales target. In this case, you may need to focus on lead generation or accelerate deals in your pipeline to increase your pipeline coverage.

Secondly, pipeline coverage is useful for forecasting your revenue accurately. By knowing how much potential revenue you have in your pipeline, you can estimate how much revenue you're likely to close in the coming weeks or months. This information is critical for budgeting, resource allocation, and making informed business decisions.

Finally, pipeline coverage is a valuable metric for sales managers and executives who need to monitor the health of their sales pipeline. By tracking pipeline coverage over time, they can identify trends and patterns that indicate the effectiveness of their sales strategy and make data-driven decisions to improve it.

In conclusion, calculating pipeline coverage is a simple yet powerful way to gain insight into your sales pipeline's health and potential revenue. By monitoring this metric regularly, you can make informed decisions about your sales strategy, forecast your revenue accurately, and stay ahead of the competition.

How Do You Calculate Pipeline Coverage in HubSpot CRM

HubSpot CRM itself isn't naturally geared towards letting you calculate complex metrics like Pipeline Coverage. As an alternative, teams typically use products like Arithmix to import data from HubSpot CRM and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers you'll powerful yet easy to use. With Arithmix you can import data from systems like HubSpot CRM, combine it with data from other systems, and create calculations like Pipeline Coverage.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Pipeline Coverage in Arithmix

Calculating metrics like Pipeline Coverage is simple in Arithmix. Once you've created your free account, you'll be able to import your HubSpot CRM data, and use it to create natural language formulas for metrics like Pipeline Coverage.

Arithmix is designed to give you the power to build any calculations you want on top of your HubSpot CRM data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.