What is a Sales Pipeline?
Short Description:
The visual or structured representation of where prospects stand in the sales process.
Expanded Description:
A sales pipeline is a visual tool or framework that maps out the different stages a prospect goes through in the sales journey, from initial contact to closing the deal. It helps sales teams track and manage their leads, ensuring no opportunity falls through the cracks. Each stage in the pipeline represents a step in the sales process, allowing teams to forecast revenue, manage workloads, and focus on the most promising prospects. A well-defined pipeline ensures that sales activities are organized and leads are nurtured appropriately.
Sales Pipeline Stages:
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Lead Generation: New prospects are added to the pipeline based on inbound or outbound efforts.
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Qualification: The lead is assessed for fit, budget, and need, determining whether it’s worth pursuing further.
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Proposal: The sales team presents a tailored offer or product demo.
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Negotiation: The prospect and sales team discuss pricing, terms, and other details.
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Closed-Won/Closed-Lost: The deal is either won or lost, and the prospect is either converted into a customer or disqualified.
Benefits:
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Improved visibility into the sales process for better tracking and forecasting
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Helps prioritize sales efforts based on the current stage of each prospect
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Supports more efficient sales management by identifying bottlenecks or stalled opportunities
Example:
In a B2B SaaS sales team, the pipeline might look like this:
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Lead Generation: A company signs up for a free trial.
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Qualification: Sales rep confirms the lead fits the Ideal Customer Profile (ICP) and has a budget.
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Proposal: The sales team offers a demo of the product.
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Negotiation: Both parties negotiate pricing, terms, and custom features.
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Closed-Won: The company signs the contract and becomes a customer.
By maintaining an organized pipeline, the sales team can clearly see where each lead is and what actions are required to move them forward.