What is pipeline coverage?

Pipeline coverage is total open pipeline value divided by the sales target for the period. Sales reads it to know if the quarter is on track. Marketing reads it to know if the funnel holds enough to hit those targets, since both own pipeline together.

3-5x is the usual healthy ratio, and the number is not arbitrary: required coverage is roughly 1 divided by win rate. A 25% win rate needs about 4x. Win rates slip and deals stall, so the extra cover absorbs both.

One catch: coverage flatters you if it is built on weak pipeline. Measure it on SQLs, not MQLs. If fewer than 7 in 10 leads get accepted by sales, the ratio is noise dressed up as confidence.