The term "sales pipeline" is thrown around a lot, but what does it actually mean? In short, a sales pipeline is a visual representation of your sales process, showing where prospects are in their journey from lead to customer. It's a fundamental tool for managing your sales efforts, forecasting revenue, and identifying areas for improvement. Let's break down the common stages of a modern sales pipeline.
Stage 1: New / Lead
This is the very beginning of the journey. A new lead is a contact or company that has shown some initial interest but has not yet been vetted. They might have filled out a form on your website, been referred to you, or you met them at an event. The goal at this stage is to make initial contact and determine if there's a potential fit.
Stage 2: Qualified
Once you've made contact and determined that the lead has a genuine need for your product or service, the budget to afford it, and the authority to make a decision, they move to the "Qualified" stage. This is a critical step that ensures you're focusing your energy on prospects who have a real chance of becoming customers.
Stage 3: Proposal / Demo
In this stage, you're actively presenting your solution. This could involve a detailed product demonstration, sending a formal proposal, or providing a quote. You've established a need, and now you're showing the prospect exactly how you can meet that need. This is where you make your case and address any specific questions or concerns they have.
Stage 4: Negotiation
If the prospect is interested after your proposal, you may enter a negotiation phase. This is where you might discuss pricing, contract terms, or specific deliverables. It's a strong buying signal, and the goal is to reach a mutually beneficial agreement.
Stage 5: Won / Lost
This is the final outcome. A "Won" deal means the contract is signed, and they are officially a customer. Congratulations! A "Lost" deal means they've decided not to move forward. It's equally important to track lost deals and, if possible, understand why they were lost. This feedback is invaluable for refining your process in the future.
Visualize Your Success
Using a CRM with a visual pipeline, like LeadStairs, allows you to see all your deals laid out across these stages. It provides instant clarity on what you need to work on next to keep things moving and hit your revenue goals.