The purpose of a sales pipeline is to track and manage your business' leads from the first point of contract through the close of a contract.
The sales pipeline provides sales teams with a methodical and structured way of reaching their sales goals. The success of your sales team demands understanding how their day to day sales activities fit into reaching the desired end result. So a sales pipeline management tool allows them to achieve success by acting with purpose.
Sales pipeline management also provides visibility into what sales activity is producing, not just in dollars, but in contacts, leads, and deals that are being worked. By providing visibility, the pipeline becomes an essential tool for salespeople and managers alike to understand and predict how sales activity is impacting the company.
At the start of the sales pipeline, new contacts and leads are added to the pipeline through a variety of channels including cold calling, email prospecting, and digital and traditional advertising methods.
Marketing engages prospects with useful content. As they engage with marketing content, they become what is known as a marketing qualified lead, which means they've demonstrated some interest and their contact information is available. From here, they are passed along to sales for additional qualification and follow up.
When leads start to interact with sales, they are considered sales engaged and are what is considered a sales qualified lead. They remain a sales engaged lead through the close of the sale.
Once the sale reaches its close, the client will often undergo an onboarding process. As the relationship expands, opportunities for up-selling and cross-selling can be explored.
Marketing Qualified Lead. When a prospect becomes engaged with a marketing campaign, they become an MQL and are passed to the sales team. At this point, the lead is considered to be worth direct outreach from the sales team.
Sales Qualified Lead. A prospect is considered sales qualified when they become actively sales engaged. They remain in this category until the close of the sale.
Making the largest possible impact from your sales pipeline requires knowing how your marketing and sales activity affects your customer relationships. For many companies, the sales process is about initiating and growing relationships with customers. Bringing customers on board smoothly and successfully growing the relationship with them is essential to maximizing the outcome of the relationship.
Know your sales process and strategize how to make the biggest impact for your customers.
Tracking your sales activity and the outcomes that result is an essential part of a functioning sales process. In the PipelineDeals CRM, activity tracking across your entire pipeline is made easy. See and report on the quantity and size of deals and analyze metrics like close ratio and sales cycle length.
Number of deals in your funnel
Average size of a deal in your funnel
Close ratio the average percentage of won deals
Average deal lifetime before it's won or sales velocity