What is Sales Pipeline?
A sales pipeline is a tool that helps marketers to create a marketing funnel.
This allows them to track each step of their campaign and analyze its performance.
Why is Sales Pipeline Important?
A sales pipeline helps you identify who your ideal target audience is.
Once you’ve identified them, you can then start creating targeted campaigns for each person individually.
In contrast, a sales funnel gives you a complete picture of your entire campaign.
How is Sales Pipeline different from Sales Funnel?
The sales funnel is a model that describes how new customers enter a company’s sales cycle.
On the contrary, the sales pipeline is used to manage sales activities over a period of time.
Three Stages of Sales Pipeline:
Building a sales pipeline for your business based on analysis of customer and sales data can help you develop better marketing strategies to drive more sales.
Here’s a way to build and refine your sales pipeline:
The first stage of the sales pipeline is lead generation.
This involves marketing strategies like email campaigns and social media ads to attract potential customers.
Once leads are generated, they must then be nurtured into qualified leads through content creation and nurturing activities.
Qualified leads should be moved to the next stage, which is qualification.
Here, marketers will conduct customer research and identify what type of products and services best match each prospect’s needs.
Marketing automation tools can help automate this process by creating personalized messages based on information gathered from previous interactions.
At the end of the sales cycle, the final step is conversion, where companies try to convert prospects into paying customers.
Conversion rates vary depending on industry, but it’s not uncommon to see them hover around 20 percent.
What to consider before building a Sales Pipeline
Before building a sales pipeline, you need to be clear on who you want in that pipeline and why they are important to you.
This will have a big impact on every stage of your pipeline, but most importantly during your lead generation phase.
Consider the following:
- Who are you trying to sell your product?
- Who has been buying from us?
- What problems do you help your customers solve?
- Why do people buy from you instead of from your competitors?
- Where do you reach people (online, TV, etc.)
An effective sales pipeline helps businesses plan out their sales strategy and track progress.
It also ensures that they stay on top of customer needs and expectations throughout the sales cycle.