Pipeline Value¶

Definition¶

Pipeline Value refers to the total potential revenue from all active opportunities in your sales pipeline. It’s a forward-looking metric that estimates the value of deals that are being pursued but not yet closed.

Description¶

Pipeline Value is a key indicator of revenue opportunity and sales health, reflecting how much potential revenue exists across open opportunities in your funnel.

The relevance and interpretation of this metric shift depending on the model or product:

In B2B sales-led models, it tracks deal size and volume across funnel stages
In PLG-assisted models, it includes expansion opportunities triggered by usage thresholds
In enterprise, it reflects large ACV deals and long-tail nurturing accounts

A rising trend suggests strong deal creation and market traction, while a declining trend could indicate lead quality issues, pipeline stagnation, or qualification drift. By segmenting by cohort — such as deal stage, region, persona, or rep — you can identify priority deals, pipeline leaks, and targeting inefficiencies.

Pipeline Value informs:

Strategic decisions, like forecasting, territory planning, and resource allocation
Tactical actions, such as reprioritizing stalled deals or launching stage-specific campaigns
Operational improvements, including CRM hygiene, pipeline review cadences, and velocity benchmarks
Cross-functional alignment, by connecting signals across sales, RevOps, and marketing to support predictable, data-driven pipeline growth

Key Drivers¶

These are the main factors that directly impact the metric. Understanding these lets you know what levers you can pull to improve the outcome

Lead Volume and Quality: Stronger leads entering the funnel = higher average deal size and better overall value.
Deal Progression and Staging Accuracy: Inflated pipeline value happens when dead deals aren’t closed out.
Territory and Segment Focus: Some verticals or regions have higher average contract values.

Improvement Tactics & Quick Wins¶

Actionable ideas to optimize this KPI, from fast, low-effort wins to strategic initiatives that drive measurable impact.

If pipeline value is low, double down on high-ACV segments in outbound or partner-led campaigns.
Add sales coaching around deal qualification to reduce junk opportunities.
Run a weekly “pipeline hygiene” sprint to close or downgrade stale deals.
Refine your ICP and align campaigns to historically high-value personas.
Partner with RevOps to track average pipeline value per rep, per quarter.

Required Datapoints to calculate the metric
- Deal Value: Estimated revenue for each opportunity in the pipeline.
- Probability of Closure: A percentage representing the likelihood of each deal closing, based on its stage in the sales cycle.
- Total Opportunities: The count of active opportunities in the pipeline.
Example to show how the metric is derived

A software company has the following deals in its pipeline:
- Deal 1: $50,000 with a 50% probability of closing.
- Deal 2: $30,000 with a 75% probability of closing.
- Deal 3: $20,000 with a 25% probability of closing.
- Pipeline Value (Weighted) = ($50,000 × 0.5) + ($30,000 × 0.75) + ($20,000 × 0.25) = $25,000 + $22,500 + $5,000 = $52,500

Formula¶

Formula

$$ \mathrm{Pipeline\ Value\ (Unweighted)} = \sum \mathrm{Deal\ Value}

\mathrm{Pipeline\ Value\ (Weighted)} = \sum (\mathrm{Deal\ Value} \times \mathrm{Probability\ of\ Closure}) $$

Data Model Definition¶

How this KPI is structured in Cube.js, including its key measures, dimensions, and calculation logic for consistent reporting.

Opportunities

cube('Opportunities', {
  sql: `SELECT * FROM opportunities`,

  measures: {
    pipelineValue: {
      sql: `${DealValue} * ${ProbabilityOfClosure}`,
      type: 'sum',
      title: 'Pipeline Value',
      description: 'Total potential revenue from all active opportunities in the sales pipeline.'
    },
    totalOpportunities: {
      sql: `${OpportunityId}`,
      type: 'count',
      title: 'Total Opportunities',
      description: 'Count of active opportunities in the pipeline.'
    }
  },

  dimensions: {
    opportunityId: {
      sql: `${OpportunityId}`,
      type: 'string',
      primaryKey: true,
      title: 'Opportunity ID',
      description: 'Unique identifier for each opportunity.'
    },
    dealValue: {
      sql: `${DealValue}`,
      type: 'number',
      title: 'Deal Value',
      description: 'Estimated revenue for each opportunity in the pipeline.'
    },
    probabilityOfClosure: {
      sql: `${ProbabilityOfClosure}`,
      type: 'number',
      title: 'Probability of Closure',
      description: 'Likelihood of each deal closing, based on its stage in the sales cycle.'
    },
    createdAt: {
      sql: `${CreatedAt}`,
      type: 'time',
      title: 'Created At',
      description: 'Timestamp when the opportunity was created.'
    }
  }
});

Note: This is a reference implementation and should be used as a starting point. You’ll need to adapt it to match your own data model and schema

Positive & Negative Influences¶

Negative influences

Factors that drive the metric in an undesirable direction, often signaling risk or decline.
- Deal Progression and Staging Accuracy: Inflated pipeline value occurs when deals that are unlikely to close are not accurately staged or removed.
- Lead Quality: Poor quality leads can decrease the average deal size and reduce the overall pipeline value.
- Economic Downturn: Economic challenges can lead to reduced spending by potential clients, negatively impacting pipeline value.
- Competitive Pressure: Increased competition can lead to price reductions and lower deal values, reducing pipeline value.
- Sales Cycle Length: Longer sales cycles can delay revenue realization and reduce the perceived value of the pipeline.
Positive influences

Factors that push the metric in a favorable direction, supporting growth or improvement.
- Lead Volume and Quality: Higher quality and volume of leads entering the sales funnel increase the average deal size and overall pipeline value.
- Territory and Segment Focus: Focusing on verticals or regions with higher average contract values can significantly boost the pipeline value.
- Sales Team Efficiency: Efficient sales teams can convert leads more effectively, increasing the pipeline value.
- Customer Relationship Management: Strong relationships with potential clients can lead to higher deal values and a more robust pipeline.
- Market Demand: Increased demand for products or services can lead to higher potential deal values in the pipeline.

Involved Roles & Activities¶

Involved Roles

These roles are typically responsible for implementing or monitoring this KPI:

Finance
Product Marketing (PMM)
Sales Manager
Activities

Common initiatives or actions associated with this KPI:

Sales Enablement
Lead and Demand Generation
Opportunity Sizing

Funnel Stage & Type¶

AAARRR Funnel Stage

This KPI is associated with the following stages in the AAARRR (Pirate Metrics) funnel:

Acquisition
Revenue
Type

This KPI is classified as a Lagging Indicator. It reflects the results of past actions or behaviors and is used to validate performance or assess the impact of previous strategies.

Supporting Leading & Lagging Metrics¶

Leading

These leading indicators influence this KPI and act as early signals that forecast future changes in this KPI.
- Product Qualified Leads: A surge in Product Qualified Leads (PQLs) typically precedes increases in Pipeline Value, since PQLs represent high-intent users who are most likely to become sales opportunities, directly feeding the pipeline.
- Sales Qualified Leads: Growth in Sales Qualified Leads (SQLs) directly signals future increases in Pipeline Value, as SQLs are leads vetted for readiness and are rapidly converted into active opportunities, increasing total pipeline potential.
- SQL-to-Opportunity Conversion Rate: A high SQL-to-Opportunity Conversion Rate boosts Pipeline Value by efficiently progressing vetted leads into pipeline opportunities, serving as a precursor metric for future pipeline health.
- Deal Velocity: Faster Deal Velocity means opportunities are added and moved through the pipeline more quickly, providing an early indicator of how rapidly Pipeline Value may grow or be realized.
- Sales Pipeline Growth: Increases in Sales Pipeline Growth reflect a larger number or value of opportunities entering the pipeline, acting as both a driver and an early indicator of rising Pipeline Value.
Lagging

These lagging indicators confirm, quantify, or amplify this KPI and help explain the broader business impact on this KPI after the fact.
- Pipeline Value Growth: Observing Pipeline Value Growth over time helps recalibrate and benchmark the effectiveness of leading indicators (like PQLs or SQLs), validating whether changes in upstream metrics are resulting in actual increases in pipeline value.
- Expansion Opportunity Score: High Expansion Opportunity Scores among current accounts can inform adjustments to lead qualification criteria and targeting, improving the predictive accuracy of leading pipeline metrics.
- Forecasted Win Rate: Comparing realized Pipeline Value against Forecasted Win Rate enables refinement of lead scoring and pipeline management models, making leading indicators more predictive.
- Percent of Accounts Reaching Product-Qualified Lead (PQL) Status: Tracking the percentage of accounts reaching PQL status provides feedback on the effectiveness of lead generation strategies, informing adjustments to leading pipeline metrics.
- Revenue Attainment: Revenue Attainment, as an outcome of pipeline conversion, offers feedback to refine leading indicators, by highlighting which pipeline components most effectively drive closed revenue.