The Importance of a Sales Pipeline
As a business owner, it’s likely you’ll understand the concept of a sales pipeline, but how important is it? How healthy is your sales pipeline? Does your sales pipeline affect your ability to succeed? In this blog post we’ll explain how important a sales pipeline really is…
Before we delve into how important a sales pipeline is, we need to understand what a sales pipeline is.
So, what is a sales pipeline?
A sales pipeline is many things. It’s a visual representation of your sales process, monitoring and measuring the individual steps your sales team take from initial contact with a potential customer, to qualifying it into an opportunity, through to the final sale. It shows the potential sales your business could convert. It’s a list that details of the stage of each deal and it is a measurement of your success, and therefore, the best indicator of your company’s health.
Your sales pipeline should contain the following information:
Why is it important?
We would all love it for a prospect to approach us and make a purchase instantly. However, usually it takes a little longer. We often need to nurture a lead, educate them in how our product or service can help them – This is where the sales pipeline comes in.
- 1Step 1: Initial contact
- 2Step 2: Qualification
- 3Step 3: Meeting
- 4Step 4: Proposal
- 5Step 5: Close
Through your sales pipeline you can measure the success of your sales team and monitor targets. You can then give credit where it’s due and review your sales strategy depending on what’s in the pipeline.
A study conducted by Vantage Point Performance and the Sales Management Association revealed that 44% of executives think their business is ineffective at managing their sales pipeline.
What’s important to note, is that an ineffective sales pipeline could result in missed opportunities, wasted man hours, a disengaged workforce as progress isn’t monitored and it could ultimately harm your reputation.
Need help managing your sales pipeline? Get in touch to see how we can help.