Open Opportunities (Revenue)
Date created: Oct 25, 2022 • Last updated: Feb 01, 2023
What is Open Opportunities (Revenue)?
The Open Opportunities (Revenue) metric measures the total revenue amount of all open or active opportunities. Often referred to as “pipeline”, sales teams and sales management use this metric to follow the progress of their sales deals and to make sure they’re on track to close. It also acts as a forecasting tool to better predict future closed won revenue.
Open Opportunities (Revenue) Formula
How to calculate Open Opportunities (Revenue)
A sales team is currently working on 20 opportunities in various stages of the sales funnel. 15 of the opportunities are for a product that has expected revenue of $10K, and 5 are for a more expensive product with expected revenue of $20K. The revenue value of Open Opportunities is 15 X $10K + 5 X $20K = $250K
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More about Open Opportunities (Revenue)
This metric is important to management, as it can be used to assess the performance of salespeople and identify areas where coaching is needed.
Tracking Open Opportunities (Revenue) is often used in conjunction with other metrics (for example, the number of sales touch-points, the time between lifecycle stages, or the conversion rate) to provide a more complete picture of sales performance.
From a forecasting point of view, measuring the total revenue opportunity of open opportunities is essential to understanding your sales pipeline. By taking into account the amount of each deal and its current stage in the sales lifecycle, you can get a clear picture of how much revenue your sales team is likely to bring in over the next quarter. This information can then be used to inform your sales strategy and ensure that you are making the most of your sales opportunities.
Metric Toolkit
Start tracking your Open Opportunities (Revenue) data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Open Opportunities (Revenue) instantly.