Revenue Operations

# Revenue Operations

Pipeline analysis, forecast accuracy tracking, and GTM efficiency measurement for SaaS revenue teams.

> **Output formats:** All scripts support `--format text` (human-readable) and `--format json` (dashboards/integrations).

---

## Quick Start

```bash
# Analyze pipeline health and coverage
python scripts/pipeline_analyzer.py --input assets/sample_pipeline_data.json --format text

# Track forecast accuracy over multiple periods
python scripts/forecast_accuracy_tracker.py assets/sample_forecast_data.json --format text

# Calculate GTM efficiency metrics
python scripts/gtm_efficiency_calculator.py assets/sample_gtm_data.json --format text
```

---

## Tools Overview

### 1. Pipeline Analyzer

Analyzes sales pipeline health including coverage ratios, stage conversion rates, deal velocity, aging risks, and concentration risks.

**Input:** JSON file with deals, quota, and stage configuration
**Output:** Coverage ratios, conversion rates, velocity metrics, aging flags, risk assessment

**Usage:**

```bash
python scripts/pipeline_analyzer.py --input pipeline.json --format text
```

**Key Metrics Calculated:**
- **Pipeline Coverage Ratio** -- Total pipeline value / quota target (healthy: 3-4x)
- **Stage Conversion Rates** -- Stage-to-stage progression rates
- **Sales Velocity** -- (Opportunities x Avg Deal Size x Win Rate) / Avg Sales Cycle
- **Deal Aging** -- Flags deals exceeding 2x average cycle time per stage
- **Concentration Risk** -- Warns when >40% of pipeline is in a single deal
- **Coverage Gap Analysis** -- Identifies quarters with insufficient pipeline

**Input Schema:**

```json
{
  "quota": 500000,
  "stages": ["Discovery", "Qualification", "Proposal", "Negotiation", "Closed Won"],
  "average_cycle_days": 45,
  "deals": [
    {
      "id": "D001",
      "name": "Acme Corp",
      "stage": "Proposal",
      "value": 85000,
      "age_days": 32,
      "close_date": "2025-03-15",
      "owner": "rep_1"
    }
  ]
}
```

### 2. Forecast Accuracy Tracker

Tracks forecast accuracy over time using MAPE, detects systematic bias, analyzes trends, and provides category-level breakdowns.

**Input:** JSON file with forecast periods and optional category breakdowns
**Output:** MAPE score, bias analysis, trends, category breakdown, accuracy rating

**Usage:**

```bash
python scripts/forecast_accuracy_tracker.py forecast_data.json --format text
```

**Key Metrics Calculated:**
- **MAPE** -- mean(|actual - forecast| / |actual|) x 100
- **Forecast Bias** -- Over-forecasting (positive) vs under-forecasting (negative) tendency
- **Weighted Accuracy** -- MAPE weighted by deal value for materiality
- **Period Trends** -- Improving, stable, or declining accuracy over time
- **Category Breakdown** -- Accuracy by rep, product, segment, or any custom dimension

**Accuracy Ratings:**
| Rating | MAPE Range | Interpretation |
|--------|-----------|----------------|
| Excellent | <10% | Highly predictable, data-driven process |
| Good | 10-15% | Reliable forecasting with minor variance |
| Fair | 15-25% | Needs process improvement |
| Poor | >25% | Significant forecasting methodology gaps |

**Input Schema:**

```json
{
  "forecast_periods": [
    {"period": "2025-Q1", "forecast": 480000, "actual": 520000},
    {"period": "2025-Q2", "forecast": 550000, "actual": 510000}
  ],
  "category_breakdowns": {
    "by_rep": [
      {"category": "Rep A", "forecast": 200000, "actual": 210000},
      {"category": "Rep B", "forecast": 280000, "actual": 310000}
    ]
  }
}
```

### 3. GTM Efficiency Calculator

Calculates core SaaS GTM efficiency metrics with industry benchmarking, ratings, and improvement recommendations.

**Input:** JSON file with revenue, cost, and customer metrics
**Output:** Magic Number, LTV:CAC, CAC Payback, Burn Multiple, Rule of 40, NDR with ratings

**Usage:**

```bash
python scripts/gtm_efficiency_calculator.py gtm_data.json --format text
```

**Key Metrics Calculated:**

| Metric | Formula | Target |
|--------|---------|--------|
| Magic Number | Net New ARR / Prior Period S&M Spend | >0.75 |
| LTV:CAC | (ARPA x Gross Margin / Churn Rate) / CAC | >3:1 |
| CAC Payback | CAC / (ARPA x Gross Margin) months | <18 months |
| Burn Multiple | Net Burn / Net New ARR | <2x |
| Rule of 40 | Revenue Growth % + FCF Margin % | >40% |
| Net Dollar Retention | (Begin ARR + Expansion - Contraction - Churn) / Begin ARR | >110% |

**Input Schema:**

```json
{
  "revenue": {
    "current_arr": 5000000,
    "prior_arr": 3800000,
    "net_new_arr": 1200000,
    "arpa_monthly": 2500,
    "revenue_growth_pct": 31.6
  },
  "costs": {
    "sales_marketing_spend": 1800000,
    "cac": 18000,
    "gross_margin_pct": 78,
    "total_operating_expense": 6500000,
    "net_burn": 1500000,
    "fcf_margin_pct": 8.4
  },
  "customers": {
    "beginning_arr": 3800000,
    "expansion_arr": 600000,
    "contraction_arr": 100000,
    "churned_arr": 300000,
    "annual_churn_rate_pct": 8
  }
}
```

---

## Revenue Operations Workflows

### Weekly Pipeline Review

Use this workflow for your weekly pipeline inspection cadence.

1. **Verify input data:** Confirm pipeline export is current and all required fields (stage, value, close_date, owner) are populated before proceeding.

2. **Generate pipeline report:**
   ```bash
   python scripts/pipeline_analyzer.py --input current_pipeline.json --format text
   ```

3. **Cross-check output totals** against your CRM source system to confirm data integrity.

4. **Review key indicators:**
   - Pipeline coverage ratio (is it above 3x quota?)
   - Deals aging beyond threshold (which deals need intervention?)
   - Concentration risk (are we over-reliant on a few large deals?)
   - Stage distribution (is there a healthy funnel shape?)

5. **Document using template:** Use `assets/pipeline_review_template.md`

6. **Action items:** Address aging deals, redistribute pipeline concentration, fill coverage gaps

### Forecast Accuracy Review

Use monthly or quarterly to evaluate and improve forecasting discipline.

1. **Verify input data:** Confirm all forecast periods have corresponding actuals and no periods are missing before running.

2. **Generate accuracy report:**
   ```bash
   python scripts/forecast_accuracy_tracker.py forecast_history.json --format text
   ```

3. **Cross-check actuals** against closed-won records in your CRM before drawing conclusions.

4. **Analyze patterns:**
   - Is MAPE trending down (improving)?
   - Which reps or segments have the highest error rates?
   - Is there systematic over- or under-forecasting?

5. **Document using template:** Use `assets/forecast_report_template.md`

6. **Improvement actions:** Coach high-bias reps, adjust methodology, improve data hygiene

### GTM Efficiency Audit

Use quarterly or during board prep to evaluate go-to-market efficiency.

1. **Verify input data:** Confirm revenue, cost, and customer figures reconcile with finance records before running.

2. **Calculate efficiency metrics:**
   ```bash
   python scripts/gtm_efficiency_calculator.py quarterly_data.json --format text
   ```

3. **Cross-check computed ARR and spend totals** against your finance system before sharing results.

4. **Benchmark against targets:**
   - Magic Number (>0.75)
   - LTV:CAC (>3:1)
   - CAC Payback (<18 months)
   - Rule of 40 (>40%)

5. **Document using template:** Use `assets/gtm_dashboard_template.md`

6. **Strategic decisions:** Adjust spend allocation, optimize channels, improve retention

### Quarterly Business Review

Combine all three tools for a comprehensive QBR analysis.

1. Run pipeline analyzer for forward-looking coverage
2. Run forecast tracker for backward-looking accuracy
3. Run GTM calculator for efficiency benchmarks
4. Cross-reference pipeline health with forecast accuracy
5. Align GTM efficiency metrics with growth targets

---

## Reference Documentation

| Reference | Description |
|-----------|-------------|
| [RevOps Metrics Guide](references/revops-metrics-guide.md) | Complete metrics hierarchy, definitions, formulas, and interpretation |
| [Pipeline Management Framework](references/pipeline-management-framework.md) | Pipeline best practices, stage definitions, conversion benchmarks |
| [GTM Efficiency Benchmarks](references/gtm-efficiency-benchmarks.md) | SaaS benchmarks by stage, industry standards, improvement strategies |

---

## Templates

| Template | Use Case |
|----------|----------|
| [Pipeline Review Template](assets/pipeline_review_template.md) | Weekly/monthly pipeline inspection documentation |
| [Forecast Report Template](assets/forecast_report_template.md) | Forecast accuracy reporting and trend analysis |
| [GTM Dashboard Template](assets/gtm_dashboard_template.md) | GTM efficiency dashboard for leadership review |
| [Sample Pipeline Data](assets/sample_pipeline_data.json) | Example input for pipeline_analyzer.py |
| [Expected Output](assets/expected_output.json) | Reference output from pipeline_analyzer.py |