A new business is introduced to the market daily. However, not every venture becomes successful. Why is that? Some may say that the missing grip is the reason for failure, while others understand that pipeline management is the sole core of it. You may be familiar with some sales pipeline stages, but you don’t know that they are called that way within professional circles. A practical and effective sales pipeline analysis is a vital element in the business development process. So, what is a sales pipeline? The more complex answer you get, the greater the efforts of the sales team will be.
Sales pipeline analysis and definition
Despite the business sphere or industry you aim for, the core concept of successful management is the ever-growing flow of customers. Improved business lead generation is an effective way to increase income. However, without a pipeline template, you will be moving in the dark. The notion of a pipeline is nothing more than a visual graph that shows you where your clients stand at the moment. The better you are familiar with the position, the clearer the prospects are viewed. The approach ensures that you only pursue the target audience and don’t waste the effort on unprofitable activities. Are you wondering how to build a sales pipeline that will enhance your business opportunities? It’s time to discuss the stages it consists of.
Primary sales pipeline stages to consider
To ensure that your sales forecast is precise, you need to add all the vital pipeline stages to the scene. Most businesses point out and tract 6-7 main points. They are as follows:
- Business lead generation.
- Deal closed.
The initial process ensures that your customers are offered ways of getting familiar with the product or service you present. Most marketing technologies include advertising and various promotional activities to attract more clients and let the target audience know they exist. In addition, any potentially successful B2B sales pipeline should include lead qualification in the process. The step allows the sales team to understand how their potential clients look like and what they need. Let alone the best ways of engagement required to trigger a successful deal and generate income.
As the sales cycle becomes preferably outlined and most B2B leads are gathered, you can move on to directly contact them and offer your services. That is when generating relevant B2B leads and interacting with them can identify clearly if the prospect is ready for the actual offer.
The minute you are positive that the customers in question truly need the product or the service, it is time for marketing to step in. What does it mean? It means that you should present the service in the best light possible, indicating the quality/price ratio and topping the offer with bonuses that other vendors lack.
When it comes to B2B pipelines, then there’s always room for negotiation. Both parties involved agree upon the scope of work involved, adjust some costs, and seal the mutually advantageous deal.
It’s easy to assume that pipeline management is done once the negotiations go successfully and the deal is signed. However, there’s also a post-purchase engagement of the same client. The fact is that a good sales team will be able to offer the user a cross-sell deal and improve the income and expand the company’s potential.
How to build a sales pipeline successfully?
A goal-oriented sales forecast can seem a lot more complicated than it actually is. However, as long as you are positive on how to build a sales pipeline that is profit-centered in detail, the orderly taken steps will bring you to success in no time. There are the following stages that the B2B sales pipeline should include:
- Prospective customers' identification.
- Assignment of sales activities.
- Sales cycle length definition.
- Stagnant deal removal.
The primary step of working on building a quality pipeline would be to track all the potential consumers according to different sales pipeline stages. Whether it is the ‘contact’ stage or a proposal, they should be outlined in detail.
Depending on the sales cycle in use, various companies attend to the task differently. Some scatter the activities all over the pipeline, while others point out a few options that they pursue in the first place, no matter the deal in question. Every vendor is up to implement a different strategy based on the business’s needs and potential. If you need a practical example, it’s safe to say that if the initial stage of the process is contact, then the logical activity it engages is sending out emails or calling the client.
Sales cycle length
Sales pipeline analysis can help you determine its length. If you weigh the complexity of the offered service, potential customization, and lead generation, you can end up with the most precise result at hand. Usually, the more complex the service is, the more alterations are to be made, and cold-call marketing indicates the longest cycle and vice versa.
The longer the deal remains inactive, the lesser the chances are that your salespeople will close it. Thus, pointing out and eliminating such deals is another shortcut to building a profitable and well-operating pipeline with future income in sight. Usually, it takes to track a deal down a sales cycle. If it remains dormant – get rid of it.
Pipeline management and sales funnel – are they the same?
It is incredibly challenging to tell the sales funnel and pipeline difference once new to the marketing industry. However, the notions aren’t the same. You should remember that. The primary difference between the two is that a pipeline is more about the deals, while the funnel is about the lead engagement. To make it even easier to grasp, it needs to be stated that a sales pipeline is centered on tracking the deal from the initial stage to its sealing. The sales funnel, in its turn, helps the team determine potential leads and transform them into satisfied and returning customers.
General B2B sales pipeline mistakes to avoid
No matter how simple a process may seem with a helpful guide at hand, you need to realize that there are mistakes to keep away from in the area, too. The most common errors that the process includes are the following:
- Dry pipeline.
- Overly-extended cycle.
- Absent coordination.
- Single-stage focus.
- Client misunderstanding.
1) With a proper template at hand, you may create a successful pipeline to help you track and close deals. However, as the pipeline is filled with options, it’s easy to assume that all of them will be through within a month. Yet, the approach rarely proves to be effective since it takes time to convert a certain deal. The experts advise that you add 1-2 deals over the monthly or quarterly minimum to ensure that all the states are filled and the pipeline does not run dry.
2) The user engagement in too long a cycle will serve you the opposite purpose you seek. Thus, constant improvement of your services and activities will help you seal deals faster and keep clients intact.
3) A template of poor coordination would be assigning a prospect to a different group every time. Constant engagement with different departments can be utterly demotivating, to the point when a user losses interest in the deal and searches for other options instead.
4) There is a reason why there are a few stages in the process. Leave one out, and the whole mechanism will stop working correctly. Thus, working on heavy marketing and leaving out the means of user-provider interaction is one of the most common mistakes to track in the modern business sphere.
5) There are countless cases when the salesperson clogs the pipe due to mere misunderstanding. Assuming that a client knows all on the matter is a sure way to clogging. Unless you are perfectly confident that the user is on the same page as your offered service, you can’t move them from one stage to another.
A proper pipeline template is one of the shortest routes to your business’s success. The better your engagement with the process is, the faster it’ll generate the results you are relying on!