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What is the difference between a pipeline and a forecast?
The terms are used interchangeably in meetings, which leads to misunderstandings about the figures.
The total value of all open sales opportunities, regardless of when they close. Indicates how much is at stake overall.
What you expect to close within a specific period. A subset of the pipeline, adjusted for probability and what the salesperson actually believes.
Pipeline divided by forecast shows how much needs to be in play to reach the target. If the figure is low, there is too little in the funnel, no matter how good the conversion rate is. This is often more actionable than either figure on its own.
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