How to Create A Sales Pipeline

October 15th, 2009 | Increasing Sales

http://www.purchase.com/blog/increasesales/howtocreateasalespipeline
I!"e been teaching someone on our team recentl# about how a sales pipeline wor$s %
an& so I thought I!& summari'e m# sales approach here (or #ou )I!"e use& this (or straight
up sales as well as (or partner sales*.
+ote: I!m going to re(er to the part# I!m selling to as a ,customer- but it coul& easil# be a
partner in the case o( partnership sales.
.here are an# number o( sales pipeline stages #ou can use: I!m going to use /ea&s, 100
Opportunities, 500 Opportunities, 900 Opportunities an& 1lose& 2on//ost. I (irst
a&opte& this metho&olog# when I began using Sales(orce.com which mappe& well to how
m# min& wor$s.
Stage 1: Leads
3irst #ou ha"e to get lea&s in the &oor. 2hat is a lea&4
5 lea& is a potential customer at its earliest stage.
Some people call this a sales ,prospect.- So, what is a prospect an& what!s the &i((erence
between lea& an& prospect4
I thin$ using either ,lea&- or ,prospect- is (ine, though in sales I ten& to pre(er to use lea&
to &e(ine m# earliest stage potential customer. I then use prospect more as a "erb as what
I ha"e to &o to (in& lea&s )e.g. when I rea& about a potential customer in the newspaper or
on a 2eb site I am ,prospecting.-*.
3or e6ample, here are the criteria I use& (or 7uali(#ing sales lea&s )7uali(#ing lea&s ma#
be 7uite &i((erent base& on what in&ustr# #ou are in*:
I ha"e their (irst an& last name
I ha"e their compan# name
I ha"e a 7uantit# metric helping me to un&erstan& that the# ha"e enough "alue to
merit me wor$ing (or them )e6amples o( a 7uantit# metric might inclu&e the
number o( emplo#ees the# ha"e, the amount o( re"enue the# generate or their
2eb site!s tra((ic ran$ing*.
I ha"e a 7ualit# metric helping me un&erstan& i( the# are the t#pe o( lea& I!m
loo$ing (or )e6amples inclu&e: the "ertical mar$et the# are in or the title o( the
in&i"i&ual*
8rospecting sales lea&s is a (ulltime 9ob. .here are two main t#pes o( lea&s:
1* Inboun& /ea&s
.o generate inboun& lea&s, #ou can simpl# run a&"ertisements )lea"ing #our phone
number, email or 2eb site in(ormation* or it ma# be as simple as #ou ha"e a 2eb site
with a ,1ontact :s- lin$ that lea&s to a sales lea& (orm )which o( course woul& as$ (or
the t#pe o( in(ormation )such as their si'e, t#pe o( business, etc.* that helps #ou &e(ine
whether someone is a goo& lea&.
2* Outboun& /ea&s
Outboun& lea& generation consists primaril# o( ha"ing an outboun& mar$eting program
or outboun& sales )such as outboun& telesales*. .he point is that generating outboun&
lea&s consists o( proacti"el# ma$ing a &a# to &a# e((ort to (in& lea&s.
.he ne6t stage a(ter 7uali(#ing a lea& is turning it into what I call an ,opportunit#.- I ha"e
three stages o( opportunities: 100, 500 an& 900 % let me e6plain each.
Stage 2: Opportunity (10%) (e !a"e #onne#ted wit! t!e rig!t people at t!e rig!t
$usiness)
I &e(ine a 100 Opportunit# as ha"ing the (ollowing 7uali(ications:
I ha"e ma&e contact with them
I ha"e con(irme& that the 7uantit# is there (or m# t#pe o( customer )(or e6ample,
the# ha"e a top 1,000 2eb site i( I!m loo$ing to sell to the largest 2eb sites in the
worl&*.
I ha"e con(irme& a 7ualit# metric such as the# are in a "ertical mar$et that has
wor$e& (or me in the past or another e6ample is that the person I!m tal$ing to is
the proper &ecisionma$er (or closing a &eal with me*.
3inall#, an& this soun&s ob"ious, but I &e(ine a 100 Opportunit# as one that has a
1 in 10 chance o( closing % &uh;
Stage %: Opportunity (&0%) (e're in t!e $allpar( on t!is deal)
I &e(ine a 500 Opportunit# as ha"ing the (ollowing 7uali(ications:
.he &etails o( the pro&uct or partnership ha"e been &iscusse& an& it!s agree& it!s a
goo& (it (or both si&es
.he pricing o( the &eal is in the ballpar$ )within 200*
.he rough timing o( the close o( the &eal has been &iscusse&
Stage ): Opportunity (*0%) (+egotiations are #o,plete)
I &e(ine a 900 Opportunit# as meeting the (ollowing criteria:
5greement on pricing
5greement on pro&uct specs
5greement on closing &ate
5greement on &eli"er# &ate o( pro&uct
1ontract has been re"iewe& )9ust not signe& #et*
Stage &: Closed on (or Lost)
3inall#, when #ou close a &eal #ou ha"e two scenarios:
1* <ou close& the &eal meaning #ou won it. .hat means that #ou ha"e the contract in han&
an& #ou!re o(( to the races;
2* <ou close& the &eal because #ou lost it. .his is o$. .hin$ about the ol& stor# o( the
"acuum cleaner salesman who sol& "acuums (or =100 but ha& to $noc$ on 50 &oors to get
a sale. 2ell, each ,1lose& /ost- &eal o( his was worth =2 each, right;4
Sales-or#e Auto,ation
3inall#, there are plent# o( customer relationship manager so(tware prorams )a$a 1>?
so(tware* a"ailable to help #ou with the stages abo"e. ?ost inclu&e the basics o(:
Sales pipeline management
Sales pipeline templates
Sales pipeline reports
I happen to use Sales(orce.com an& I!m 7uite happ# with it@but there!s plent# o( other
goo& sales so(tware out there.