Sales pipeline is a term that comes up in sales a lot. On this page, we’ll cover what it means; what its stages are; what its role in sales is.
What is the Sales Pipeline?
The sales pipeline is a visual tool for representing customers' complete journey from awareness to purchase. While the actions consumers take at each stage varies by industry, the stages themselves apply everywhere.
Informally, “pipeline” refers to how much total business opportunity is available to you. For example, if you have potential deals worth up to $10 million in your pipeline, you have “$10m in pipeline” at the moment.
Sales pipeline is roughly equivalent to sales funnel. A sales funnel is more often used in marketing; leads go top-to-bottom, vertically. A sales pipeline is more often used in sales; leads go left-to-right horizontally, or top-to-bottom, vertically.
Why is your Sales Pipeline Important?
Conceptually, a sales pipeline is powerful because it helps you predict and shape sales. It shows you how many leads are in each stage of the pipeline. This lets you know what revenue might be like - and also allocate sales resources to specific leads.
When pipeline means potential opportunities, it’s even more important. Without pipeline, you have no way to convert leads into customers. There’s nobody you can sell to, which threatens business growth and survival.
Stages of a Typical Sales Pipeline
The 6 stages of a typical sales pipeline are…
- Lead Generation: You begin by making potential customers aware of the product of service you offer.
- Lead Qualification: Next, the goal is to learn about your lead and determine if you can meet their needs.
- Meeting: Your salespeople organize a touchpoint with qualified leads and present a pitch.
- Negotiating: Discuss terms, pricing and timing with prospective clients before finalizing.
- Closing: Both parties agree to a deal, and celebrate by completing all necessary paperwork.
- Onboarding: After the sale, ensure your customer has all the resources the benefit from your offer.
The Role of CRM in Sales Pipeline Management
CRM systems, or Customer Relationship Management tools, play an indispensable role in managing a sales pipeline. These systems help you track and manage every interaction with leads and clients tasks so no lead slips through the cracks. Also, they unify your team by providing a central platform where they can work well together.
Pipeline Best Practices
- Focus on Lead Quality: Target high-quality leads that match the ideal customer profile. Quality over quantity.
- Don't Delay Responding: A swift response can quicken a lead's movement down the pipeline.
- Nurture Leads: Use campaigns that market your brand for leads that are not yet ready for conversion.
- Equip Your Team: Continually educating your team helps them focus on what people need at all stages in the pipeline.
- Use Data-Driven Insights: Delve into performance metrics to hone your strategy. Identify what works best for your company.
- Optimize, Optimize, Optimize: Maintain a dynamic sales environment by building in time to evaluate your strategies and adapt to industry changes.
