Sales Pipeline Management

Sales pipeline is a great indicator of a company’s health. It can show you the money (that you are going to make in the coming months). Manage your pipeline well and you’ll stay well organized and feel more in control of your sales figures.

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.

The sales pipeline usually includes the following four metrics:

Number of
deals in your pipeline.
Average size of a deal in your pipeline.
Close ratio - average percentage of deals that get won.
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.

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Virginia, United States

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Sales Pipeline Management - Pipedrive