Sales Pipeline Management

Sales pipeline is a great indicator of a company’s health. It can literally 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 currently just 7 deals in the first stage, instead of the average of 13, then it’s clear that you should quickly find at least 6 new opportunities in order 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 current 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 overly 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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The best and most visually appealing way to track a long sales cycle.
Kevin Lenane,
Founder & CEO, Veenome
Virginia, United States
Love this program. It is the only CRM that I actually want to use. Having a CRM that you don't want to use leads to your team not using it. What's the point of that. Pipedrive is built by sales people, for sales people.
Rick Feineis,
Managing Partner & Senior Trainer, CAD Training Online
Virginia, United States
As an enterprise sales rep, I need any edge I can get out's highly competitive. Pipedrive gives me that edge. Thank you for building such a cool product. I've been looking fora product like this for like 6-12 months.
Brandon Carroll,
Biz Dev, Koofers. Co-Founder, ActivelyCaring
Virginia, United States

Pipedrive is a sales tool for small teams with big ambitions

We’ve built a CRM-replacing sales management tool that’s not great for just salespeople, but for anyone wanting to get super organized and close deals in less time.

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.

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15+ years of sales pipeline know-how condensed into 1 email course and ebook. The email course and ebook contain 11 salary changing sales pipeline management lessons that will help you grow your sales by double digits.
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Sales Pipeline Management - Pipedrive