Pipeline: what is it and how to use it in sales?

Pipeline is widely used in IT, design, consulting. With its help, companies visualize the process of product development and work organization. In our article, we will tell you in detail about the features and advantages of a pipeline in sales, how it differs from a sales funnel, and how to use it to increase the number of deals in a company.

  • Sales pipeline or sales funnel?
  • What does a pipeline consist of?
  • Why do you need a sales pipeline?

 

What is a pipeline? Translated from English, a pipeline is a pipeline or conveyor. In business, a pipeline is a document or service that can be used to visualize the sequence of steps in creating, promoting, and selling products. Moreover, they are arranged in such a way that the end of the previous stage is the beginning of the next one.

Sales pipeline or sales funnel?

A sales pipeline describes the customer’s journey, with the focus shifted towards the sales process, starting with the lead generation stage and  indonesia phone number list ending with the deal being closed. As a rule, it is done in a special program or Excel spreadsheet. Sometimes a pipeline is confused with a sales funnel, as both solutions help plan the work of the sales department and evaluate its results.

The difference between a pipeline and a sales funnel:

  • The pipeline displays the sales process in detail from the point of view of a company employee. The sales funnel describes only the path of the lead before the purchase.
  • The pipeline tells in detail about the client, the status of the deal, the history of communications. The sales funnel contains data only on the number of sales and their amount.

It turns out that the sales funnel is more focused on sales stages and conversion, and the pipeline is the history of turning an application into a deal. You can easily make a sales funnel from a pipeline, but there is not enough data in a sales funnel for a pipeline.

Features of working in the pipeline:

  • Requires constant data updates. For a pipeline to be an effective solution, it is necessary to constantly update the data. This not only allows you to control the work of employees , but also teaches the sales department discipline.
  • Effective for any business sector. Pipelines are used in all areas of activity, and are used for both reporting and planning the work of the sales department.

What does a pipeline consist of?

As a rule, pipeline in sales is used by B2B companies with a long transaction cycle, where communication with clients can be quite complex, so each stage affects the outcome of the transaction. Depending on the specifics of the business and the business goals of the company, the data in the pipeline may change.

What does the pipeline contain?

  • The company identifier is typically the name of the organization.
  • Client contact details: email, messenger, address, etc.
  • Personal manager who is responsible for this transaction.
  • Product name, commercial offer.
  • Deadlines for starting work and signing the contract.
  • The cost of the goods or the entire transaction.
  • Transaction stages, status.

To improve the quality of control, the actions  20 fascinating sms marketing statistics and trends for 2024 of employees and the status of communications with the client are often indicated in pipelines. The personal manager himself evaluates the potential of the deal and indicates the probability of its conclusion. In case of refusal of the deal, the specialist also writes the reasons for the client’s refusal.

To close a deal and increase the company’s income, Telfin experts recommend dividing pipelines into stages of work and setting deadlines for one day, week, month, etc. Three key stages can be distinguished in working with pipelines:

  • Planning stage. This step allows you to obtain initial information about the client, learn about their requests and capabilities, identify the responsible employee and draw up a plan for their work. At this point, you can plan a communication strategy with the client, assess the prospects for promotion and sales, and make your own forecasts for the timing of the deal.
  • Action stage. This is active work according to the plan. For example, for one client it is necessary to make a commercial proposal, with another — to meet and hold a product presentation. Here there is individual work with each client, which requires great attention to detail and earlier agreements and wishes of clients.
  • Analysis stage. The employee sums up the results of the working day/week, and the manager evaluates a longer period: month/quarter. The manager provides a report on his work and the results achieved, and the manager plans  cz lists how to improve the indicators, speed up the sales period. Here the company returns to the planning stage again.

Why do you need a sales pipeline?

Pipelines not only allow you to plan and control processes in real time within the framework of client management, but also solve a number of additional business tasks:

  • Objection handling. Thanks to a detailed description of each stage of communication with clients, you can quickly influence the situation, identify factors that slow down the sales process, resolve controversial issues, find reasons for refusals and increase conversion.

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