Definition
Sales-qualified pipeline is the subset of pipeline that meets agreed qualification criteria, making it more predictive than raw pipeline.
Example
If total pipeline is $4M and $2.5M meets SQO criteria, qualified pipeline is $2.5M.
How to use it
- Use qualified pipeline for coverage planning (it is harder to game).
- Keep qualification rules consistent or you will break trends.
- Track qualified pipeline by segment to expose weak coverage.
- Audit qualification notes to ensure criteria are actually met.
Common mistakes
- Changing qualification rules without backfilling history.
- Counting early-stage pipeline as qualified.
- Including pipeline with no next step or unclear close date.
- Treating qualified pipeline as guaranteed revenue.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Sales-qualified Pipeline" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging)) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Activation Rate Calculator: Compute activation rate: what % of new signups reach your activation event (and what you need to hit a target).
- Trial-to-paid Conversion Calculator: Compute trial-to-paid conversion rate and estimate required conversions to hit a target.
- DAU/MAU (Stickiness) Calculator: Compute DAU/MAU stickiness and translate it into implied active days per month.
- WAU/MAU Calculator: Compute WAU/MAU and translate it into implied active weeks per month.
- Feature Adoption Rate Calculator: Compute feature adoption: what % of active users used a specific feature in a time window.
Guides
- Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging): A practical guide to pipeline coverage: connect quota, win rate, sales cycle length, and CAC/payback constraints to set realistic growth targets.