How To Calculate Sales Pipeline Coverage in Netsuite | Arithmix
Learn how to calculate sales pipeline coverage in Netsuite with our step-by-step guide. Improve your sales forecasting accuracy and make data-driven decisions for your business.
Calculating sales pipeline coverage is an essential part of any sales strategy. It helps businesses to understand the health of their sales pipeline and forecast future revenue. In this article, we'll explore what sales pipeline coverage is, when it's valuable to calculate it, and how to calculate it.
What Is Sales Pipeline Coverage?
Sales 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 of your sales target is covered by the deals in your pipeline. For example, if your sales target is $100,000 and the value of deals in your pipeline is $50,000, your sales pipeline coverage is 50%.
Sales pipeline coverage is a critical metric for sales teams because it helps them to understand the health of their pipeline. If your pipeline coverage is low, it means that you don't have enough deals in your pipeline to meet your sales target. If your pipeline coverage is high, it means that you have a healthy pipeline and are on track to meet or exceed your sales target.
When Is It Valuable To Calculate Sales Pipeline Coverage?
Calculating sales pipeline coverage is valuable in several situations. Firstly, it's valuable when you're setting sales targets. By calculating your sales pipeline coverage, you can set realistic sales targets that are achievable based on the deals in your pipeline.
Secondly, it's valuable when you're forecasting revenue. By knowing your sales pipeline coverage, you can forecast how much revenue you're likely to generate based on the deals in your pipeline. This can help you to plan your resources and make informed business decisions.
Finally, it's valuable when you're managing your sales team. By monitoring sales pipeline coverage, you can identify areas where your team needs to focus their efforts to increase the value of deals in the pipeline and improve pipeline coverage.
How To Calculate Sales Pipeline Coverage
Calculating sales pipeline coverage is a straightforward process. Firstly, you need to determine your sales target for a given period. This could be a month, a quarter, or a year, depending on your business needs.
Next, you need to calculate the total value of deals in your sales pipeline for the same period. You can do this by adding up the value of all the deals in your pipeline that are expected to close during the period.
Finally, you need to divide the value of deals in your pipeline by your sales target and multiply by 100 to get a percentage. For example, if your sales target is $100,000 and the value of deals in your pipeline is $50,000, your sales pipeline coverage is 50%.
It's important to note that sales pipeline coverage is a dynamic metric that changes over time. As deals move through your pipeline, the value of deals in your pipeline will change, and so will your pipeline coverage. Therefore, it's essential to monitor your pipeline coverage regularly and adjust your sales strategy accordingly.
In conclusion, calculating sales pipeline coverage is a valuable exercise for any sales team. It helps businesses to understand the health of their pipeline, forecast revenue, and make informed business decisions. By following the steps outlined in this article, you can calculate your sales pipeline coverage and use it to improve your sales strategy.
How Do You Calculate Sales Pipeline Coverage in Netsuite
Netsuite itself isn’t naturally geared towards letting you calculate complex metrics like Sales Pipeline Coverage. As an alternative, teams typically use products like Arithmix to import data from Netsuite and build out dashboards.
What is Arithmix?
Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Netsuite, combine it with data from other systems, and create calculations like Sales 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 Sales Pipeline Coverage in Arithmix
Calculating metrics like Sales Pipeline Coverage is simple in Arithmix. Once you've created your free account, you’ll be able to import your Netsuite data, and use it to create natural language formulas for metrics like Sales Pipeline Coverage.
Arithmix is designed to give you the power to build any calculations you want on top of your Netsuite 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.Use Arithmix free