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Did you know that only 20% of the sales process involves customer-facing time? The other 80% happens in between, and this is why sales pipeline management is crucial for driving growth. In this article, we're going to go through the three essential principles you need to know to manage your pipeline effectively.
Principle 1: Have a CRM
Having a CRM (Customer Relationship Management) system is essential for managing your pipeline. It's where you will track your deals, and it will help you understand your win rate and why you win or lose deals. Whether you start with a spreadsheet or a free CRM like Hubspot, having one central place to manage your deals is critical.
A CRM system can help you:
- Track your leads and deals
- Identify your most profitable customers
- Measure the success of your sales process
- Analyze data to make better business decisions
Principle 2: Define Your Pipeline Stages
To effectively manage your pipeline, you need to understand the different stages that a deal goes through. This will help you track your progress and identify areas for improvement. Your pipeline stages will depend on your sales process, but generally, they will include a discovery call, proposal, and closing stages.
Defining your pipeline stages can help you:
- Track your progress and identify bottlenecks
- Identify areas for improvement in your sales process
- Forecast your sales
- Measure your sales velocity
Principle 3: Measure Your Pipeline Velocity
Once you have defined your pipeline stages, it's essential to measure your pipeline velocity. This is the rate at which deals move through your pipeline, and it's a critical metric for forecasting and identifying bottlenecks in your sales process. By measuring your pipeline velocity, you can optimize your sales process and drive growth.
Measuring your pipeline velocity can help you:
- Identify bottlenecks in your sales process
- Forecast your sales more accurately
- Identify areas for improvement in your sales process
- Optimize your sales process to drive growth
In Conclusion
Effective sales pipeline management is critical for driving growth. By following these three principles, you can optimize your pipeline and close more deals. Remember, having a CRM system is essential for managing your pipeline, defining your pipeline stages can help you track your progress and identify bottlenecks, and measuring your pipeline velocity can help you optimize your sales process and drive growth.
Once you have your pipeline management in place, you’ll likely want more pipeline. Consider launching a Referral Automation Program to generate more organic pipeline with the power of Megaphone.
