Sales pipeline management

Your sales pipeline is the best indicator of your company's health and the place to see your deals. A well-managed pipeline is the best way to stay in control of your sales results.

What is a sales pipeline?

The sales pipeline is a systematic and visual approach to selling a product or service. The sales pipeline is helpful in showing you exactly where the money is in your sales process.

You’ll be able to understand at which stage any deal is, whether you have enough deals on the board to achieve your goals and quota, as well as understand whether certain deals need special attention.

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The sales pipeline usually includes the following four metrics:

1

Number of deals in your pipeline.

2

Average size of a deal in your pipeline.

3

Close ratio - average percentage of deals that get won.

4

Average deal lifetime before it’s won - or sales velocity.

How to manage the sales pipeline?

Start by measuring sales pipeline metrics in your business. In the following example of a small team, there are figures both for the whole sales pipeline and for each stage separately.

The figures are useful benchmarks for current results and future trends. It’s recommended to complete this exercise at least once a year.

What you measure, you can manage

For example, if your company has just seven deals in the first stage, instead of the average of 13, it’s clear that you should quickly find at least six new opportunities to make the numbers you’ve achieved previously.

You also start understanding positive signs; for example, you know that you’re making good progress when the average size of your deals in the pipeline is 16,000 instead of 13,080.

You might pick up other things your team could do to improve:

1

Get deals from stage one to stage two quicker

2

Increase the volume of total deals

3

Increase the size of your deals by upselling

Use sales pipeline management software

It’s not easy to measure all these things. It takes some effort to gather the data on a regular basis, and sales pipeline software such as Pipedrive will help you do that.
Want pipeline management tips? Read sales pipeline tips on Pipedrive’s blog.

Pipedrive is a sales tool for small teams with big ambitions

We’ve built a sales management tool that’s not only great for salespeople, but also for anyone wanting to get super organised and close deals in less time. It is especially effective when the sales process is complicated and there are a lot of people and stages involved. About half of our customers liked us so much they switched from their existing CRM. The other half? Well they didn’t even know they needed Pipedrive until they tried it.

Join over 100k happy users around the world

As a social media agency who pride ourselves on communication, proactivity and results, it’s great that our sales support software shares this ethos. Since we started using Pipedrive we have never looked back, and our sales have increased as a result of being so organised.
Jodie Cook,
Managing Director, JC Social Media Limited
The best thing we love about Pipedrive is it does two-way sync with Google Apps. It has helped us to better organise and keep everything on track.
Nirmal Gyanwali,
Managing Director, Nirmal Web Studio
I started using Pipedrive over two months ago and I absolutely love it. It helps me to manage my sales deals better than any other tool. Their customer service is also over the top!
Kristel Viidik,
Founder, Testlio
Sales pipeline management | Pipedrive
Sales pipeline management
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