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Is Pipeline Coverage Ratio simply the Inverse of Win Rate?
with the Metrics Brothers
Is Pipeline Coverage Ratio simply the inverse of the win rate? Many people will translate a 20% win rate into the need for a 5:1 Pipeline Coverage Ratio - Dave "CAC" Kellogg and Ray "Growth" Rike dive into why that just isn't the case!
There are multiple variables that need to be considered including:
Win Rate versus Closed-Won Rate Conversion - there is a difference
What happens to Pipeline Coverage Ratio when deals are pushed into or pushed out of the quarter
How is Pipeline Coverage Ratio different in a 30 day sales cycle versus a 180 day sale cycle
Bottom line - why Pipeline Coverage Ratio is NOT as simple as 1/Win Rate
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