What is pipeline generation?
Pipeline generation is the work of creating new qualified sales opportunities, through outbound outreach, inbound marketing, partners and referrals.
Why it matters for sales teams
Revenue next quarter depends on pipeline created this quarter. If too few new opportunities enter the sales pipeline, even a strong closing team will miss its number later. Some sales leaders set pipeline generation as its own target, separate from closed revenue, and share it across sales development, marketing and account executives.
Pipeline can come from several sources:
- Outbound prospecting by SDRs and AEs
- Inbound leads from marketing
- Referrals from customers
- Partners and resellers
- Expansion within existing customers
Example
A team needs 40 new qualified opportunities this quarter to support its revenue goal. Marketing owns 16 of them, the SDR team owns 16, and AEs own 8 through their own prospecting. Each week the team reviews new opportunities by source and adjusts if one source falls behind.
Pipeline generation vs lead generation
Lead generation produces contacts who may be interested. Pipeline generation is measured further along: it counts only opportunities that sales has qualified and added to the pipeline, usually with an estimated value. A campaign can produce many leads and little pipeline if those leads are a poor fit for the ideal customer profile.