14 Nov

How to Set Up a Sales Pipeline: A Step-by-Step Guide for Beginners

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How to Set Up a Sales Pipeline: A Step-by-Step Guide for Beginners

A sales pipeline is a way to organise all of the steps of the selling process. It helps you keep track of your leads, their needs, and what you need to do next. This guide will show you how to set up your own sales pipeline for maximum effectiveness. Whether you’re trying to make a sale or are just starting out in the field of sales, this guide will help you get started with setting up a sales pipeline.

What is a sales pipeline?

A sales pipeline is a way to organise all of the steps of the selling process. It helps you keep track of your leads, their needs, and what you need to do next.

How to set up your sales pipeline

Your sales pipeline will be a list of prospects, each with a different stage. Your first step is determining the different stages that your prospects go through before they become a customer.

An effective sales pipeline has multiple stages. He is an example setup:

  • Unqualified – All prospective customers that you are yet to determine, have the problems you solve
  • In Contact/Qualified – You have opened lines of communication and they are in need of your product/service
  • Meeting/Demo booked – The conversation has gone well and you are invited to meet/pitch or demo
  • Proposal Sent – Congrats! The meeting went well and they want a proposal
  • Verbal Decision – You’ve been given a verbal decision, but you’re not there just yet.
  • Contract Sent – It’s becoming official.
  • Closed Won – Well done, you’ve won the client!
  • Closed Lost – Sorry, not this time.

 

How to use your sales pipeline

The sales pipeline is there for a whole host of reasons, not just to keep track of who you are trying to work with, although this is crucial in order to maximise your revenue opportunities.

Keep track of how long customers stay at each stage – this will enable you to understand where improvements can be made in the process.

What are your conversion rates between stages? – If you know you get lots of meetings easily but aren’t being asked to send lots of proposals, then you can deduce that something isn’t going well in the meeting. Equally, if you are having great meetings, and sending lots of proposals, but then the deals aren’t closing, you should explore if the information in the proposal is good enough, check your pricing, or control the buying process better.

How long does it take to close a deal? – Being able to have this information to hand, combines with the average order values below, will arm you with powerful data, to help forecast future revenue. It’s like having your won sales crystal ball.

What are you selling? – Use your pipeline to keep track o products or services. Get visibility on what you’re selling, and how much of it.

When and how are you communicating with a prospect? – If you know you need to send specific information or ask a certain question at each stage of the sales process, a pipeline will help remind you what to do at each stage.

 

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Benefits of having a sales pipeline

A sales pipeline has many benefits, which is why it’s important to set one up.

Sales pipelines are much more than just a pretty organisational tool. A sales pipeline will help you to:

  • Improve the way your prospects perceive you and your company 
  • Increase conversion rates 
  • Track the progress of your leads 
  • Manage lists of contacts 
  • Organise tasks so they get done when they need to be done 
  • Simplify your workflow

Conclusion

A sales pipeline can be a valuable tool to help you organize your sales process. It can help you not only improve your sales but also improve your efficiency.

A sales pipeline is a series of steps that help you organise your sales process. It helps you identify potential customers, engage with them, and convert them to paying customers.

The first step is to identify the types of customers you want to target. After this, you want to create a process for engaging with these customers. Finally, you want to convert these potential customers into paying customers.

To get a good idea of how a sales pipeline can be beneficial for your business, drop us a line.

"Working with Ben has made me a more confident and efficient recruiter and I couldn't recommend him enough!"
We recently had a training day with Ben and found him extremely friendly and approachable. Ben tailored his techniques and methods so they were appropriate for Francis Consultancy, making them more realistic and relatable. Working with Ben has made me a more confident and efficient recruiter and I couldn't recommend him enough!
Abigail Lewis Recruitment Consultant Francis Consultancy London, UK
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Written by Ben Bennett

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