A sales pipeline is a tool used to progress through the stages of the sales process. Each step taken through the pipeline consists of actions that must be performed to complete a specific stage. Sales experts recommend that managers include no more than six stages.
Generally, most pipelines feature five stages that are identified by an initial contact with the potential customer followed by qualification, then meeting with the contact. In the final stages, sales personnel present a proposal and close\ the sale. One other stage that may be included is follow-up.
The qualification stage in the pipeline is highly important. Otherwise, the process will be a waste of time for the salespeople as well as the prospect. During the qualification stage, salespeople scrutinize the contact and the potential for a sale. This includes determining not only the prospect’s budget, but the interest in making a purchase in the first place.
Once the qualification criteria have been met, salespeople can go on to the next step, demonstrating the service or product to the prospect and showing how it can meet the business’s needs.