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Blog · Forecast and pipeline

Sales forecast categories: commit, best case and pipeline, defined so they can be tested

Commit, best case and pipeline are the usual sales forecast categories, and on most teams they mean whatever each rep wants them to mean. This page gives a definition for each category that rests on evidence in the deal rather than on confidence, the close rate each category should achieve if the definitions are being followed, how to test that on the team's own history, how to roll the categories up into a forecast range, and a copyable forecast sheet.

The short answerForecast categories only work when each has an evidence test and an expected close rate. Commit: the customer has confirmed the decision and the date, the decision-maker is engaged, terms are agreed or in final review, and the rep would be surprised by a loss; expect 85 to 95 percent of commit value to close in the period. Best case: a dated next step agreed with the customer, a plausible path to signature inside the period, and a named risk; expect 35 to 55 percent. Pipeline: open with a close date in the period and neither test met; expect 5 to 15 percent. Closed is already won. Test the definitions each quarter by measuring what share of each category, as forecast at a fixed week, actually closed. If commit closes at 60 percent, the category is being used for hope, and the definition or the discipline needs fixing.

Three words carry most sales forecasts. This page makes each one mean something that can be checked afterwards.

The definitions

Category Evidence required Expected share of value closing in period
Closed Signed, booked 100%
Commit Customer has confirmed they will buy and when; decision-maker engaged directly; commercial terms agreed or in final review; paperwork path and signatories known; the rep would be surprised to lose 85 to 95%
Best case Dated next step agreed with the customer; a realistic path to signature inside the period; decision process known; at least one named risk 35 to 55%
Pipeline Close date inside the period; neither test above met 5 to 15%
Omitted Close date outside the period, or deal stalled 0

Two things make these testable. Each rests on evidence in the deal record, not on how the rep feels. And each carries an expected close rate, so it can be wrong in a measurable way.

The commit checklist

A deal is commit only if every line is yes.

  1. Has the customer said, in words, that they intend to buy from us?
  2. Have we dealt directly with the person who signs or approves?
  3. Are price and main terms agreed, or in final legal or procurement review?
  4. Do we know the steps between now and signature, who does each, and the dates?
  5. Is the customer's date driven by something on their side?
  6. Is there no open competitor evaluation?

Five out of six is best case. The list is short enough to apply in a minute and strict enough to keep commit at ninety percent.

Testing the categories

Take a fixed point, such as week four of each quarter. For every deal, record its category at that snapshot and whether it closed won inside the quarter.

Category at week 4 Value forecast Value closed in quarter Close rate Expected
Commit $3,200,000 $2,050,000 64% 85 to 95%
Best case $2,600,000 $780,000 30% 35 to 55%
Pipeline $4,100,000 $330,000 8% 5 to 15%

Commit is closing at 64 percent. On this team commit means something closer to likely. Either tighten its use with the checklist, or accept the measured rate and forecast with it; what cannot continue is rolling up commit at face value.

Then the same table per rep:

Rep Commit close rate Best case close rate Reading
A 94% 41% Using the definitions
B 52% 18% Optimistic in both; commit is hope
C 100% 78% Sandbagging: commit deals held in best case

This needs weekly snapshots of the forecast, which most CRMs do not keep; see forecast accuracy and bias in Excel.

Rolling up to a range

With the team's measured rates:

Component Value Rate Contribution
Closed $1,400,000 100% $1,400,000
Commit $3,000,000 64% measured $1,920,000
Best case $2,400,000 30% measured $720,000
Pipeline $3,800,000 8% measured $304,000
Expected $4,344,000

Floor = closed + commit at measured rate = $3,320,000 Expected = all four at measured rates = $4,344,000 Ceiling = closed + commit at face value + best case at the top of its measured range = about $5,400,000

The manager's call sits inside the range, adjusted for what they know: a large deal in best case that will either land or not, a rep whose commit is reliable. Report the range and the call. Once the definitions are being followed, the measured rates converge on the expected ones and the range narrows. The forecast accuracy benchmark covers how close the call should be at each point in the quarter.

Rules for moving between categories

Move Requires
Pipeline to best case A dated next step agreed with the customer
Best case to commit All six checklist lines
Commit to best case Any checklist line turns to no. Move it the same day
Any to omitted Close date leaves the period, or no customer action in 45 days

Downgrades are the discipline. A commit deal whose signatory goes quiet is best case today, not at quarter end. The snapshot history shows how late downgrades happen: if most commit deals that failed were still in commit in the final week, the category is not being maintained.

A copyable forecast sheet

Forecast: [rep or team], [period], week [n]

Deal Value Close date Category Evidence: what the customer last said or did, date Risk Change since last week

Totals by category. Measured close rates by category, trailing four quarters. Floor, expected, ceiling. Call: [value]. Change in call since last week, and why.

Where it goes wrong

Categories as confidence. Feels good is commit.

Never tested. Nobody knows that commit closes at 64 percent, so it is summed at 100.

No snapshots. The category at week four is overwritten, and the test is impossible.

Late downgrades. Commit holds until the last day, then collapses.

One number reported. A point forecast with no range invites false precision and then blame.

The short version

Define each category by evidence, give it an expected close rate, snapshot the forecast weekly, and measure what each category actually closed at, for the team and per rep. Roll up with measured rates into a floor, an expected value and a ceiling, and make a call inside it. For the deal-level inspection that feeds the categories, see the pipeline review template; for the direction of each rep's miss, forecast bias by rep. Covirage keeps the weekly snapshots from the opportunity export and reports category close rates per rep each quarter.

Questions people ask

Should the forecast be the commit figure?

The forecast is a range with a call inside it. The floor is closed plus commit at its historical rate. The ceiling adds best case at its rate and a little pipeline. The call is where the manager believes it will land. Reporting only commit understates; reporting commit plus best case overstates. The range, with the measured rates, is the honest version.

How is this different from stage-weighted pipeline?

Stages describe where the deal is in the sales process; categories describe the rep's evidence-based judgement of whether it closes this period. A deal can be late-stage and not commit, because the date is uncertain. Categories add judgement that stages cannot carry, which is why their accuracy has to be measured, per rep.

What if reps sandbag commit?

The measurement shows it: a rep whose commit closes at 100 percent every quarter and whose best case closes at 80 is putting commit deals in best case. The fix is the same as for optimism: show each rep their own category close rates and have the conversation about the definition.