Whether your business gains hundreds of leads daily or struggles to attract new prospects, a well-structured sales pipeline is critical for success. It provides a systematic approach that helps businesses organize their sales processes and maximize revenue potential through better lead management.
In this article, you will learn how to make your sales cycle more structured and organized. You will also discover the core stages of a sales pipeline and explore tips on converting prospects into new customers more effectively.
What are the benefits and purposes of a sales pipeline?
A sales pipeline is a visual roadmap that tracks a lead’s journey from the first touchpoint to the final purchase. It enables companies to monitor deals and take timely actions throughout the sales process. At its core, a sales pipeline provides clear visibility into your current prospects and their status. With its help, sales teams can identify any bottlenecks and make informed decisions about the next steps.
Below, find some other key advantages that a well-structured pipeline offers.
Increased sales efficiency
Just as a flight status board gives an instant view of all flights, a sales pipeline provides a clear overview of every prospect’s position in the buying journey. This visibility enables sales teams to prioritize actions effectively and maintain momentum throughout the sales process.
Performance monitoring
A sales pipeline also offers detailed insights into individual and team performance. Sales managers can track KPIs such as deal values, closure rates, time-to-close, and others to make data-driven decisions on resource allocation and optimization of the overall team productivity.
Early problem detection
A sales pipeline acts as an early warning system that highlights where and why potential deals are stalling or falling through. This visibility allows managers to identify patterns, address systemic issues, and implement targeted improvements before they significantly impact revenue.
Data-driven sales forecasting
Historical sales data extracted from a pipeline serves as a powerful forecasting base. When analyzed with appropriate sales analytics software, this information enables businesses to:
- Project future sales with greater accuracy
- Identify seasonal trends and patterns
- Make informed decisions about resource allocation
- Set realistic revenue targets
- Plan strategic growth initiatives
Key main sales pipeline stages
Each business has a unique sales cycle with specific characteristics and timelines. While the components of a sales pipeline may differ from one company to another, these fundamental stages form the core of most B2B operations:
1. Lead generation
This process relies on sales and marketing approaches to attract new clients. The core purpose of lead generation is to nurture people’s interest in the company’s products and services to convert them into paying customers.
With the rise of digital marketing, lead generation goes far beyond calling. Nowadays, it encompasses a variety of instruments and channels, including social media advertising, email automation, presence in offline events, and many other approaches.
To generate quality leads, you need to be well-informed about who your ideal customer is by paying attention to characteristics such as:
- Location
- Language
- Age
- Nationality
- Qualification level
- Job role
If you already know your ideal customer profile, then even the lead generation stage should be targeted. That way, direct outreach and advertising will likely bring value to people or businesses that constitute part of your target audience.
Example: If your ideal customer is an IT procurement manager at an enterprise-level company in Western Europe, consider building a multi-channel lead generation strategy. For offline activities, you can attend major tech events and trade shows that are relevant to your industry in this region. This will let you establish direct industry connections. For digital strategy, combine LinkedIn advertising with Google Ads campaigns focusing on enterprise software search terms.
2. Lead qualification
At this stage, delve deeper into your leads and determine which ones are likely to convert into clients. This process is referred to as lead scoring or qualification, and it involves a number of questions to ask about each person or business attracted:
- Do they have sufficient purchasing power?
- Are they really interested in our products?
- Do our products address client’s pain points and meet their specific needs?
Answering these questions helps you focus on the most promising prospects. Once qualified, engage these leads with valuable content like ebooks, exclusive discounts, and invitation-only webinars to keep them engaged.
3. Initial contact
The timing of the initial contact varies depending on your lead generation approach. For online campaigns, this stage follows lead qualification. With offline lead generation activities, the initial contact comes prior to lead qualification.
For online leads, reach out through appropriate channels such as phone calls, email messaging, and Zoom meetings, depending on your sales strategies and activities. For offline leads, leverage face-to-face interactions through meetings or brief group discussions. Regardless of the communication method, seize this opportunity to understand your potential customers better while introducing them to your business solutions.
4. Product demo
At this stage, schedule meetings and product demo sessions with interested leads. For SaaS solutions and online services, conduct comprehensive product demos highlighting core features and competitive advantages. When dealing with physical products, arrange for sales representatives to visit the client’s office or another location for in-person demonstrations.
Following the demonstration, give prospects time to evaluate how well your product aligns with their specific business needs and use cases.
5. Proposal and negotiation
At this stage, prepare detailed collaboration proposals tailored to each prospect’s needs. This often involves negotiating pricing structures, especially for complex multi-module digital solutions. Create agreements that clearly document all negotiated terms and conditions. Be aware that a customer can also ask for additional details during this stage.
6. Deal close
The final stage occurs when both parties reach an agreement on all terms and either sign a contract, complete a purchase, or both. However, this is more than just an administrative step. A proper deal closure should include:
- Clear documentation of all agreed terms
- Defined implementation timelines
- Established communication channels for support
- Outlined next steps for product/service delivery
- Confirmation of payment terms and schedules
Example: For a SaaS company, deal closure might involve signing a service agreement, setting up user accounts, scheduling implementation meetings, and arranging initial training sessions.
Remember that movement through these stages isn’t always linear. Some prospects may need to revisit earlier stages due to new requirements or concerns that arise during the process. The key is maintaining flexibility while ensuring each stage adds value to both parties.
Is the sales pipeline and funnel the same?
Although these two terms are often used interchangeably, they perform different functions and serve various purposes.
A sales pipeline focuses on tracking and managing the sales process from the seller’s perspective. It helps sales representatives track their deals and activities throughout each stage, from initial lead generation to closing.
A sales funnel visually represents a customer’s journey. It illustrates how prospects move through various stages of engagement with your business, from first becoming aware of your solution to making a purchase decision.
Think of it this way: the sales pipeline represents your internal roadmap for closing deals, while the sales funnel reflects your customer’s decision-making journey. Both tools work together to provide a complete picture of your sales process – the pipeline shows how effectively your team is moving deals forward, while the funnel reveals how well you’re guiding customers toward a purchase decision.
| Criteria | Sales pipeline | Sales funnel |
|---|---|---|
| Key stages | – Lead generation – Lead qualification – Initial contact – Product demo – Proposal and negotiation – Deal close | – Awareness – Interest – Evaluation – Engagement – Purchase – Retention |
| Focus | Sales processes from lead gaining to deal closing. | Customer buying journey exploration. |
| Perspective | Sales team-centric: “What actions should we take next?” | Customer-centric: “What does the buyer need at this stage?” |
| Metrics | – Number of leads – Sales cycle length – Pipeline velocity – Average deal size – Win rate | – User engagement – Conversion rates between stages – User engagement levels – Time spent in each stage – Drop-off points – Customer lifetime value |
Example: Imagine a software company selling enterprise solutions. Their sales pipeline tracks how many leads the sales team has contacted, demos scheduled, and proposals sent. Meanwhile, their sales funnel monitors how many prospects downloaded their whitepaper (awareness), requested more information (interest), attended webinars (evaluation), and ultimately purchased the solution.
Learn more about the differences between sales pipeline vs. sales funnel.
How to create a sales pipeline
Identify your ideal customer profile (ICP)
Start by defining your ideal customer profile. If you’re an established company, analyze your existing customer base to identify patterns among your most successful and profitable clients. Look for common characteristics, review their journey with your company, and understand what makes them ideal customers.
If you are new to the market, conduct surveys and distribute them through different channels. This will help you shape your ICP and identify which demographic groups are interested in your products. Alternatively, explore the client base of your competitors by examining their social media presence, analyzing their website content, and monitoring their customer interactions.
Explore sales pipeline templates
Most sales pipelines share common elements, but yours should reflect your specific business needs. Begin by reviewing established pipeline templates available through CRM systems or other sales management tools. Many of them are available for Excel spreadsheets and popular systems for customer relationship management.
Afterward, customize the selected template according to your business case, considering the specifics of your sales process. For example, a B2B software company might add stages for technical evaluation and security review, while a consulting firm might emphasize proposal development and scope negotiation phases.
Document processes
Document all aspects of the sales pipeline, including the stages, activities, team members involved, tools used, channels, etc. Additionally, specify sales target values for each pipeline stage and indicate the expected and maximum sales cycle duration.
This documentation serves as your team’s roadmap and should be clear enough for new team members to understand and follow. Include real examples from your business to illustrate what success looks like at each stage.
Instruct your sales team members
Once the sales pipeline is designed, share it with your colleagues involved in the sales process. Explain the nuances of a pipeline, present the expected sales goals, and instruct sales representatives on which actions to take at different phases and how to move leads through the pipeline.
Consider running practice sessions and sales coaching where team members work with real scenarios to understand how to move leads through the pipeline effectively. Regular feedback sessions can help identify areas where the process might need refinement or where additional training might be beneficial.
Fundamental metrics to measure lead generation success
Creating and implementing an effective sales pipeline is only half the challenge. The other half involves selecting the right metrics to evaluate its effectiveness and identify potential areas for process improvement. Here are some of the commonly used metrics:
| Metric | Description |
| Total deals | This is a fundamental metric that shows the number of active deals in the pipeline. It provides a quick snapshot of your pipeline’s health and potential revenue opportunities. |
| Lead conversion rate | It depicts the percentage of leads progressing through the pipeline and converting into paying customers. This metric provides an understanding of your team’s effectiveness. For example, if you start with 100 leads and 20 become customers, your conversion rate is 20%. |
| Average deal value | This KPI is calculated as the ratio of the total revenue and the total number of deals. For instance, if you closed 10 deals worth $100,000 in total, your average deal value is $10,000. It also helps to forecast revenue growth and identify opportunities to increase deal sizes through upselling or package optimization. |
| Win rate | This shows the percentage of deals that were closed with success. For example, a win rate of 25% means one in four deals closes successfully. Compare your win rate to the industry standards – if it’s above average, it means that your sales sales strategy works well. Otherwise, it might be the right time to review your sales approach. |
| Sales cycle length | This metric depicts the average time from the first contact to deal closure. You can compare it to the expected sales cycle duration. For instance, if your expected cycle is 30 days but actual cycles average 45 days, investigate where and why the deals get stuck. With this KPI, you can also identify bottlenecks and opportunities to optimize your sales process. |
| Lead response time | This shows how quickly prospects respond to your communications. Short response times indicate high interest and engagement levels. For example, if leads typically respond within hours rather than days, they’re likely to be more promising ones. |
Remember to monitor these metrics consistently and in context with each other. A change in one metric often affects others, providing valuable insights into your overall sales process effectiveness.
Best practices on sales pipeline management
Creating a sales pipeline is just the beginning; you should continuously improve and adjust it. To achieve this, it’s highly recommended to use additional tools and services that help you manage the sales pipeline on a daily basis. Below, are some useful tips to help you in the day-to-day management of a sales pipeline.
Use CRM to track your sales deals
Some of the most popular CRM software systems are Salesforce, HubSpot, and Pipedrive. You can use these solutions to create records of new leads and keep track of them, all within a single system. As an example, feel free to check a detailed guide on how to use Pipedrive.
Create sales cycle reports
Sales reports outline the results of sales activities over a certain period of time. They usually comprise a set of KPIs on leads and sales processes, such as revenue generated, average sales cycle duration, won rate, and so on.
Such reports bring value to sales department managers, enabling them to track individual and team performance, spot any bottlenecks, and make informed decisions on sales process optimization. They are also often used to present results on sales activities to leaders and stakeholders.
With Coupler.io, you can create custom sales reports easily thanks to the supported integration with CRM systems, marketing apps, accounting software, etc. This reporting automation platform allows you to collect sales data, transform it into reports on the go, and load it to the preferred destination like spreadsheets or BI tools.
Moreover, Coupler.io offers free pre-built dashboard templates for sales reporting automation. You only need to connect your data source and in a few moments, you’ll get a ready-to-use solution to analyze your sales pipeline, team performance, and more.
Derive patterns that drive closed deals
Some pre-built templates take historical data on input to derive patterns from it. For example, you can analyze all won deals over the last fiscal year to discover the common factors that have led to success. They might refer to sales cycle duration, lead response time, deal amount, etc.
Update your pipeline regularly
Based on the reporting and analysis of the sales processes, you can uncover the areas for improvement. Based on those, decide how to modify your sales pipeline to make it more efficient and drive more revenue.
Free dashboard templates to analyze sales pipelines
Now, let’s take a detailed look at the dashboard examples for visualizing sales pipelines, analyzing their key metrics, and keeping track of them.
Sales team performance dashboard for Salesforce in Looker Studio
This dashboard template provides an overview of each sales representative’s and the entire team’s performance results.
What does it do?
It shows won and lost deal characteristics, such as amount, rate, and opportunities. You can also apply filters to create a reporting view that matches your business needs.
Review the final stages of the sales pipeline to explore win and loss rate rates and compare the types of closed deals of each sales representative to better understand the weaknesses and strengths of each sales professional. This will help you to reallocate resources within your team to increase the effectiveness of the overall sales.
How to use it?
This dashboard template is designed for use in Looker Studio. The full list of instructions can be found in the Readme tab of this template. In a nutshell, you simply need to install the Coupler.io connector in Looker Studio and configure it with the step-by-step on-screen guidance. After that, connect to your Salesforce account to extract data from there and take several steps to configure the Looker Studio report.
Sales KPI dashboard for Pipedrive and HubSpot
This Looker Studio sales dashboard enables sales managers to check the general dynamics of deals.
What does it do?
It also shows closed deal revenue over time, which helps to define seasonal patterns and dependencies on other activities such as marketing campaigns, conferences, or team growth.
This template also provides reasons for lost deals based on specific owners, deal types, regions, or custom labels. That way, you can easily explore and address these reasons to increase your sales conversion rates.
It also contains a customizable pipeline visual where you can define up to five stages relevant to your process. Then, you will be able to visually explore the pipeline in general and explore the bottlenecks at each stage.
How to use it?
This dashboard template is designed for use in Looker Studio. You can find the complete set of instructions in the Readme tab of this template. In a nutshell, you simply need to install the Coupler.io connector in Looker Studio and follow the step-by-step on-screen guidance to configure it. After that, connect to your Pipedrive account to extract data and follow several additional steps to set up the Looker Studio report.
Check out other sales dashboards provided by Coupler.io
HubSpot marketing performance dashboard in Looker Studio
Explore your HubSpot marketing funnel stages, from subscribers to evangelists, while evaluating performance across regions, campaigns, pages, and emails.
Customer acquisition dashboard for HubSpot
Monitor your acquisition funnel and analyze its effectiveness using the insights from HubSpot CRM, advertising platforms, and Google Analytics 4.
Salesforce sales analytics dashboard
Analyze your sales funnel performance with the insights collected from Salesforce, Google Analytics, and the ad platforms you use for lead generation.
Other tips to boost your business growth
Creating and managing a sales pipeline is already a significant step toward improving sales efficacy. However, the results of your sales activities can be further strengthened by various organizational activities.
- Strengthen brand awareness. Driving sales becomes easier when people or companies know about you. Therefore, they will likely show trust in your brand and proceed to deal close and purchase. To strengthen your brand, consider paid advertising on search engines and social media. Also, explore sales opportunities through the establishment of local partnerships with other businesses, involve influencers for brand promotion, make podcasts, etc.
- Improve customer service. Brand reputation is as important as awareness since it shapes word of mouth. Take care of your current customer efforts and ensure they meet high-quality standards. Ask your existing customer base to make reviews on popular platforms in your industry.
- Describe your product value. During the demo stages of a pipeline, ensure you present the maximum possible value of your products and services. Customize your presentation and ask more about the customer’s business case.
- Constantly update and innovate your product. Make sure your product is competitive in the market. Gather feedback from existing customers and feature requests to improve your product.
- Try new sales channels. During the initial stage of a sales pipeline, try to look for new leads in alternative sales channels. Pick the ones that are most appropriate for your company and launch ad campaigns or other brand awareness activities. Consider LinkedIn for B2B corporations and other popular platforms.
- Grant personalized experience. Coupler.io can be used not only for sales teams but also across other departments. It will help you to analyze the purchasing preferences of certain customer groups to improve the customer experience for both existing clients and future ones.
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