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Overview
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Name:Reverse Waterfall Pipeline Math
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Objective: To derrive targets across the full funnel based on fiscal year targets broken down by quarter
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Approach:This model leverages a 'reverse waterfall' methodology to translate fiscla year targets up the funnel for MQLs, SQLs, SAO expectations. The model assumed MQLs>SQL conversion happens immediately, but SAO conversion occurs over a prelonged period of time (quarters). By taking time as a consideration, you can accurately assess how many in quarter MQLs, SQLs and SAOs are needed to succeed throughout the year.
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Definitions
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Bookings TargetRevenue targets (distributed by quarter)
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ASPAverage Sales Price
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Close Rate% of SAOs moved to Closed-Won
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SQL > SAO RateMeeting acceptance rate
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Marketing Source SQL Ratio% of SQLs expected from Marketing sourced leads
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Timing of Pipe to CloseThe close date distribution (% of total) by quarter. This helps indicate how immediately impactful pipeline generation can be
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SAOSales Accepted Opportunity; these are accepted SQLs that are in active pipeline
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SQLSales Qualified Lead; effectively the meetings generated (typically by an SDR) to give the AE an at bat pipeline opportunity
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MQLMarketing Qualified Lead
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