Concepts
Last updated: July 2026
Revenue Quality Engine organizes commercial decisions around a single mental model. This page defines each concept and shows how they relate. It is the reading order that makes everything else in the documentation click.
The model at a glance
Revenue Quality
│
├──> Revenue Score (per-deal, 0-100)
│ │
│ └──> Deal Health (directional)
│
├──> Opportunity Quality (intrinsic fit)
│
├──> Margin Optimization (economic variable)
│
└──> Next Best Action (actionable output)
│
└──> Commercial Efficiency (KPI outcome)
Revenue Quality is the umbrella. Revenue Score is how RQE measures it per deal. Deal Health is the derivative that says whether the score is trending up or down. Opportunity Quality and Margin Optimization are the two intrinsic variables that feed the score. Next Best Action is the actionable output. Commercial Efficiency is the KPI that improves when the loop closes.
Revenue Quality
Revenue Quality is the composite measure of profitability, execution, and durability of a commercial opportunity. It is a stance, not a formula: RQE treats revenue as an asset to be evaluated, not a number to be maximized.
Why it matters. Two deals of equal dollar value can have wildly different quality. A high-quality deal has margin, is likely to close, and produces a customer that stays. Optimizing for volume ignores the last two.
Revenue Score
Revenue Score is the per-deal numeric expression of Revenue Quality, computed on a 0-100 scale. It combines Opportunity Quality (intrinsic fit) and expected margin, weighted by execution signals.
How it is computed. RQE ingests the deal's amount, stage, age, historical seller performance, product mix, and margin. The scoring engine outputs a score plus the top three contributing factors, so a seller can see why a deal scored what it scored.
Refresh cadence. Scores update on every material change to the deal and at least once per day.
Revenue Health
Revenue Health is the aggregate measure of Revenue Quality across an entire pipeline or period. Where Revenue Score answers "how good is this deal?", Revenue Health answers "how good is my pipeline right now?".
Deal Health
Deal Health is a directional indicator of a specific deal's trajectory: improving, stable, or degrading. It is the derivative of Revenue Score over time. A deal can have a high score and degrading health — that is exactly the situation Next Best Action targets.
Opportunity Quality
Opportunity Quality is the measure of the intrinsic fit of an opportunity, independent of execution effort. It considers ICP match, product-need alignment, buying authority, and budget signal. A poorly-executed opportunity with high Opportunity Quality is still a good opportunity — it just needs execution.
Margin Optimization
Margin Optimization is the practice of maximizing gross margin per deal instead of top-line revenue. RQE tracks margin per deal via product mix, discount, and cost inputs, and surfaces margin-degrading patterns so they can be corrected before they become policy.
Why margin matters more than revenue. A revenue-maximizing organization can still lose money. A margin-optimizing organization compounds. RQE assumes the second.
Next Best Action
Next Best Action is the concrete next step RQE recommends for a given deal at a given time. It is not "call the customer" — it is "call the decision maker before Friday to confirm the security review", with the reason attached.
How it is produced. The recommendation engine combines the deal's current state, the score's contributing factors, and the historical action-to-outcome patterns for similar deals in the same account tier.
Commercial Efficiency
Commercial Efficiency is the ratio of revenue quality outcomes achieved to sales capacity consumed. It is the KPI that improves when the entire loop closes: better scoring produces better prioritization, better prioritization produces better actions, better actions produce more high-quality closed deals per hour of seller time.