Pipeline-to-Revenue Ratio
Ratio of total marketing-generated pipeline to closed revenue from that pipeline, measuring conversion efficiency
What is Pipeline-to-Revenue Ratio?
Pipeline-to-revenue ratio compares the marketing-sourced pipeline created with the marketing-sourced revenue closed in a period. It shows how much pipeline is needed to produce each unit of revenue.
The ratio helps teams set pipeline targets, because it reflects how much of the pipeline actually converts.
How this KPI is measured
- Function
- Marketing
- Sub-function
- Revenue Marketing
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- x
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total marketing-sourced pipeline created / Total marketing-sourced revenue closed in period
How to calculate it
Divide total marketing-sourced pipeline created by total marketing-sourced revenue closed in the period.
For example, if marketing created 6,000,000 of pipeline and 1,500,000 of revenue closed, the ratio is 6,000,000 / 1,500,000 = 4.
The figure means four units of pipeline were created for each unit of revenue. Use a long enough period to cover sales cycles, since pipeline created now closes later.
Where it is used
Setting pipeline targets
Work out the pipeline needed for a revenue goal.
Assessing pipeline quality
See whether a high ratio means weak conversion.
Forecasting
Predict revenue from current pipeline.
How to improve it
Tips and common mistakes
- A lower ratio is usually better, as it means pipeline converts efficiently.
- Timing mismatches can distort the ratio in a single quarter.
- Use it with win rate and sales cycle length.
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