Pipeline Generation
Pipeline generation is the work of creating qualified sales opportunities, deals with a real buyer, need and value, that enter the sales pipeline and can be forecast toward revenue.
Also called: pipegen, pipeline creation
Why it matters
Revenue targets depend on having enough open opportunities early enough. Pipeline generation is how teams make sure of that, combining inbound demand, outbound prospecting, partner referrals and expansion within existing customers. Many companies set a pipeline target as a multiple of their revenue target, because not every opportunity will close, and track progress by source each week.
Pipeline generation differs from lead generation. A lead is a contact. Pipeline is a qualified opportunity with an estimated deal value and a stage in the CRM. Counting leads can hide the fact that few turn into deals, so pipeline is measured in money: dollars of qualified pipeline created, by source, segment and time period.
Example
A sales team needs $500,000 of new ARR next quarter. It expects to win about one in four qualified opportunities, so it plans to create $2,000,000 of pipeline. The team splits the target across inbound demo requests, SDR outbound and partner referrals, and reviews pipeline created by each source every Monday.
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