Pipeline Conversion Rate

What is the Pipeline Conversion Rate?

The Pipeline Conversion Rate metric calculates the share of closed won opportunities during the period out of all the opportunities that were available in the pipeline at some point during the period. It measures the effectiveness of converting pipeline opportunities into closed won deals within a specific period.

Why is the Pipeline Conversion Rate important to measure?

The Pipeline Conversion Rate is important for businesses to assess the efficiency of their sales process in converting pipeline opportunities into closed won deals within a specific period. By tracking this metric, organizations can evaluate the overall performance of their sales team, identify trends in conversion rates, and assess the accuracy of sales forecasts. Understanding the conversion rate by different segments, teams, and individual sales representatives helps businesses identify areas for improvement and optimize their sales strategies to enhance conversion rates and overall sales performance.

How is the Pipeline Conversion Rate calculated?

The Pipeline Conversion Rate is calculated by dividing the total value of closed won opportunities during the period by the total value of pipeline opportunities that were available at some point during the period.

Formula

Pipeline Conversion Rate =Value of Closed Won Opportunities for the PeriodTotal Value of Pipeline Opportunities during the Period