Why Poor Pipeline Management Is Costing You Money
Is your company failing to meet sales goals? Have you tried several sales strategies but are still unable to reach acceptable conversion rates? If so, the problem may be the result of inefficient, or lack of, pipeline management.
Without proper pipeline management strategies, it can be nearly impossible to understand the customer and their needs or to identify problems within your company’s sales model. This, of course, can stagnate sales.
How Strong Is Your Pipeline Management?
Perhaps you already have a pipeline management process in place. Now you have to ask yourself: how strong is your pipeline management? Chances are that if your company isn’t reaching sales goals and you have no idea why, then your pipeline management strategy needs to be strengthened.
If your company is having problems such as:
- Slow moving sales cycle
- No sales forecasting
- Treating customers the same despite the stage in a sale cycle
- Losing value-leads data when sales reps leave
Or, if you can’t answer basic questions like:
- How many prospects do you have right now?
- Where are these prospects in the pipeline?
- Who are the decision-makers?
- What is your sales leads-to-close ratio?
Then, it is time to reevaluate your pipeline management strategies.
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What is Pipeline Management?
A sales pipeline is a visual examination of where each prospective sales lead is in the sales process. While the detailed sales process is different for each company, the main components consist of:
- Initial Contact – identify and begin initial engagement with potential lead
- Qualifications – determine if the lead has the need, budget and authority to make the purchase
- Meeting – sales rep meets with client to discuss possible solutions your company can provide
- Proposal – lead is close to making a purchase and the sales rep provides them with a detailed quote
- Closing – as the final stage, this is where the conversion occurs and the lead becomes a customer
As the lead moves further down the pipeline, the potential for closing the deal increases significantly. This detailed look at the sales pipeline enables your company to see how close your sales team is to meeting sales goals and identify problem areas within the selling process. Pipeline management also empowers companies to improve their forecasting strategies.
Strengthening Your Pipeline Management
If you want to improve your sales, now is the time to strengthen your pipeline management strategies. With this, you will be able to identify where sales are getting stuck in the process, and create viable strategies to create the necessary momentum to push these sales through. Pipeline management also will give you a clearer picture of how your sales team is doing and where improvements can be made.
The good news is that platforms like Datahug and CRM (Customer Relationship Management) platforms make it easier for companies to track their pipeline management. By having one centralized location to store sales data and track customer engagement, Datahug and CRMs provide an effective visual for your pipeline management.
Ultimately, improving your pipeline management provides you with invaluable data about your selling process at every stage in the sales process. Understanding your company’s strengths and weaknesses allow you to make effective improvements to your sales strategies. This in turn can boost sales and improve your company’s bottom line.