Active Pipeline Volume
- Category: Sales
Active Pipeline Volume: Key Sales KPI
Active Pipeline Volume is a fundamental Sales Key Performance Indicator (Sales KPIs). This metric represents the total number of deals that are currently active in the company's sales pipeline. It's a snapshot of the sales team's workload and the sales opportunities being pursued.
Understanding Active Pipeline Volume is essential for sales management and planning. It provides insight into the sales team's capacity, how actively they are engaging with potential customers, and what the potential future sales volume might be.
How to Calculate Active Pipeline Volume
The formula for Active Pipeline Volume is straightforward:
Active Pipeline Volume = Total Number of Active Deals in the Sales Pipeline
In this equation, an "Active Deal" refers to a potential sales opportunity that is currently being pursued by the sales team. This does not include closed deals (either won or lost) nor deals that have been put on hold or discontinued.
By regularly monitoring the Active Pipeline Volume, a sales team can better manage their workload, identify potential bottlenecks in the sales process, and make more accurate forecasts about future sales. If the Active Pipeline Volume is consistently high without a corresponding increase in sales, it could highlight inefficiencies or issues in the sales process that need to be addressed. Conversely, a low Active Pipeline Volume might indicate a need to ramp up prospecting efforts or re-evaluate the company's sales strategy.