What is Forecast Coverage?
Forecast coverage asks a pointed question: is there enough pipeline behind the forecast to survive the deals that inevitably slip.
A forecast with thin coverage is fragile, one slip and it misses, while a well-covered forecast has room to absorb losses and still land.
Short answer
Forecast coverage is the ratio of qualified pipeline behind a forecast to the forecasted number, indicating whether there is enough backing to absorb normal slippage and still hit the commit. Where pipeline coverage compares pipeline to quota, forecast coverage compares pipeline to the forecast itself, a check on whether the committed number is adequately supported by real deals.
Key takeaways
- Ratio of supporting pipeline to the forecast.
- Checks whether the commit is adequately backed.
- Distinct from pipeline-to-quota coverage.
- Thin coverage means a fragile forecast.
Why it matters
A forecast without enough pipeline behind it cannot absorb slippage and misses the moment any deal falls through. Forecast coverage flags that fragility, so leaders know whether the number has a cushion or is a knife-edge.
How Ardovo handles it
Ardovo shows forecast coverage alongside the commit, so Rook can flag when the forecast rests on too little supporting pipeline to survive normal slippage and quantify how fragile the number is.
Frequently asked questions
What is forecast coverage?
It is the ratio of qualified pipeline behind a forecast to the forecasted number, showing whether there is enough backing to absorb normal slippage and still hit the commit. It checks whether the forecast is adequately supported by real deals.
How is forecast coverage different from pipeline coverage?
Pipeline coverage compares pipeline to quota; forecast coverage compares supporting pipeline to the forecast itself. One asks if you can hit the target, the other asks if the committed number has enough backing to survive slippage.
Why does forecast coverage matter?
Because a forecast with thin pipeline behind it is fragile and misses the moment a deal slips. Forecast coverage reveals whether the commit has a cushion to absorb normal losses or whether it sits on a knife-edge.