How To Calculate Sales Pipeline Coverage in SAP Sales Cloud | Arithmix
Learn how to calculate sales pipeline coverage in SAP Sales Cloud with this comprehensive guide. Improve your sales forecasting accuracy and drive revenue growth by understanding the key metrics and calculations involved. Get expert insights and practical tips to optimize your sales pipeline management today.
Calculating sales pipeline coverage is an essential part of any sales process. It helps sales teams to understand how much revenue they can expect to generate in the future, and how well they are performing against their targets. In this article, we will discuss what sales pipeline coverage is, when it is valuable to calculate, and how to calculate it in SAP Sales Cloud.
What Is Sales Pipeline Coverage?
Sales pipeline coverage is a metric that measures the ratio between the value of opportunities in a sales pipeline and the revenue target for a given period. The value of opportunities is the sum of the potential revenue of all open deals in the pipeline. The revenue target is the amount of revenue that a sales team is expected to generate in a given period, usually a quarter or a year.
For example, if a sales team has $1 million worth of opportunities in their pipeline and their revenue target for the quarter is $2 million, their sales pipeline coverage is 50%. This means that they have enough opportunities in their pipeline to generate half of their revenue target.
When Is It Valuable To Calculate Sales Pipeline Coverage?
Calculating sales pipeline coverage is valuable in many situations. It helps sales teams to:
- Understand how well they are performing against their targets
- Identify potential gaps in their pipeline and take action to fill them
- Forecast future revenue more accurately
- Allocate resources more effectively
By calculating sales pipeline coverage regularly, sales teams can stay on top of their performance and make data-driven decisions to improve their results.
How To Calculate Sales Pipeline Coverage In SAP Sales Cloud
SAP Sales Cloud provides a simple way to calculate sales pipeline coverage. Here are the steps:
- Go to the Sales Pipeline view in SAP Sales Cloud
- Select the period for which you want to calculate sales pipeline coverage (e.g., quarter, year)
- Filter the view to show only open deals
- Sum the potential revenue of all open deals in the pipeline
- Divide the sum by the revenue target for the selected period
- Multiply the result by 100 to get the percentage
For example, if you have $1 million worth of opportunities in your pipeline and your revenue target for the quarter is $2 million, your sales pipeline coverage is 50%.
By following these steps, you can easily calculate sales pipeline coverage in SAP Sales Cloud and use the insights to improve your sales performance.
How Do You Calculate Sales Pipeline Coverage in SAP Sales Cloud
SAP Sales Cloud 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 SAP Sales Cloud 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 SAP Sales Cloud, 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 SAP Sales Cloud 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 SAP Sales Cloud 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