Forecast Accuracy Defined
Forecast accuracy measures how close the revenue you committed to at the start of the quarter was to what actually closed. World-class B2B teams reach 85 to 90%. Most start under 50%. The gap is almost always pipeline hygiene and stage discipline, not forecasting skill.
Track forecast accuracy at three points: start of quarter, mid-quarter and end of quarter. The trend matters more than any single number, because it tells you whether your forecasting process is improving.
Pipeline Coverage Defined
Pipeline coverage is the ratio of qualified pipeline value to remaining quarter or annual quota. A 3× to 4× ratio is healthy for most B2B segments, accounting for typical win rates of 25 to 33%. Below 2.5× is a red flag.
Coverage targets vary by segment, sales motion and historical win-rate. Set the target by working back from your actual win-rate, not by copying a benchmark.
- →Calculate target coverage = 1 / win-rate
- →Report coverage weekly, by segment
- →Track coverage trend, not just snapshot
- →Trigger pipeline-generation actions below target
The Weekly Forecast Cadence
Run a weekly forecast call where each segment owner commits to the quarter number, supported by their pipeline coverage and a list of must-win deals. Document the commitment, then measure variance at quarter-end. That variance becomes next quarter's improvement plan.
The cadence is the discipline. Without a documented weekly commitment, forecast accuracy never improves because nobody is accountable for the gap.
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