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.
A sales pipeline is a systematic approach to selling a product or service. There are four key metrics to keep in mind:
The more open deals you work with, the bigger they are, the better percentage that you are able to convert of them and the less time it takes to get a customer, the bigger your revenue.
Start by measuring sales pipeline metrics in your business. On the following example there are figures for a small team both for the whole sales pipeline and each stage separately. It's a useful benchmark for current results and future trends. It's recommended to complete this excercise at least once a year.
What you measure, you can manage. For example, if the company has currently just 7 deals in the first stage (while the average is 13), then they know they should quickly find at least 6 new opportunities to be able to make the numbers they’ve made previously. Or, if the average deal size of their current deals in the pipeline is $16,000 (up from $12,326), that's a good sign.
It’s not overtly 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 more pipeline tips? Read sales pipeline tips on our blog.
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