Is sales pipeline management really important for sales growth?
All organizations are bound to aspire for a faster and smarter growth to their sales processes.
In the modern business ecosystem, having to push the customer into buying your product will most likely be counter-productive. Instead, your sales process should be geared towards nudging the customer into looking at the proposed purchase as adding great value to their buying process.
The sales process progresses in a step-by-step manner that definitely takes time to result in a purchase.
These step-by-step processes are termed as a sales pipeline that a particular lead should go through before conversion. Sales pipeline management is really important for running sustainable processes.
Why you need a sale pipeline?
Any manager should always know answers to a few important questions-
- Do you know what has changed since last week in your business?
- Do you identify your High ROI lead sources?
- Do you know your best future sales prospects?
- Are you pushing your sales executives rightly?
Any of these questions could leave you head scratching; It could be presented as a puzzle to your internal team. Moreover, you can also enter into mere guessing game.
As a matter of fact, even you are aware of the necessary steps needed to answer these questions; it could be impractical to actually figure-out the accurate data.
In this situation, you need a sales pipeline to consolidate and calculate the right numbers.
Sales pipeline management is critical for all businesses that rely on sales channels or sales team to drive revenue growth. It’s a clear visual representation of the sales prospect and process. The sales pipeline forecast effectively influences the business strategies of companies.
It allows you to start positioning each of your prospects in definite stages along the sales pipeline. You can also identify the best possible future course to convert each prospect. The below diagram represents a simplistic sales pipeline, from acquiring a sales lead to final conversion.
The sales pipeline segmentation could also make your sales funnel.
- With appropriate sales pipeline management, sales forecasts become real, not just guesses.
- It reduces the risk of false assessment.
- Selling efforts are broken down into clearly defined stages.
- It helps to identify lost opportunities and prevent the future loss
However, 44% of the companies think they are ineffective at managing the sales pipeline (Source: Hub Spot). Complex data and ever changing market economy makes things more complicated in today’s situation. A complete sales pipeline management system can make your job easier.
The sales management software can help you get best out of your sales pipeline. Now, let’s discuss how a CRM software can effectively reinforce your sales pipeline system?
Better Business Management
The prime goal of sales pipeline is a smarter way to manage prospects. Your overall sales management is the combination of your prospect management. Having an overall better prospect management means that your overall sales management also gets better.
With better prospect management, you can gain a better overall rein of your process of prospecting.
Centralized Customer Data
A sales pipeline is usually established through a sales platform that combines multiple ongoing sales operations. This also happens to be an excellent way to collect all the relevant customer data.
You also need to maintain close employee and customer communications. This means that you can access your employees through the centralized customer data.
The cloud servers are also a safe way to store and share your customer data. This includes contact details, purchase history, interaction summaries, future meetings, reminders etc.
Prioritized and SYSTEMATIZED Lead tracking
The sales pipeline lets you know, which prospects are closer to conversion and which leads are farther away from possible conversion. This centralized information system lets salespersons to easily follow up with each leads.
In this case, the CRM platform also helps you generate more qualified leads for your business.
Contact management system, is a highly accessible and functional dashboard design, while ticketing system and sales tracking features are extremely compatible in generating future sales prospects.
Empower Marketing Management
An all-inclusive Customer Management System helps create, track and manage marketing campaigns effectively. Its customer centric approach gives you a perfect understanding of customer needs and expectations about your service or product. So it makes easy to form a marketing strategy by analyzing the customer data with the integrated CRM system.
Social media integration can also help generate more traffic on your website. You can manage social media campaign, Email marketing and lead management on a single CRM platform.
Real-time Sales Forecasts
You should go beyond assumptions while recognizing the future sales. This includes analyzing the latest analytics rather than relying on mere hunches and guesswork.
An inappropriate sales forecast can result in severely damaging your future projects.
The sales pipeline is an effective way to organize and streamline your ongoing transactions. Based on the present interactions, you can segment your prospects as hot, warm and cold.
This forms a relatively accurate description of the chances of conversion.
Accurate Risk assessment and management
A well-functioning sales pipeline lets you identify the portion of sales process that your prospects overwhelmingly drop-off.
This gives you an opportunity to understand the cause of leak, analyze the prospects, and systematize the sales process. By selectively fixing your sales process, you can also increase your rate of customer acquisition. Hence, this plays a major role in increasing the overall customer acquisition.
The best way to have watertight control over what’s happening in your sales pipeline is through a CRM software. It not only provides a clearly visible sales cycle, but also assembles the diverse segment of sales process on a common sales pipeline dashboard.
After having a confidence on your sales pipeline management, you can think of a revised strategy to take the next step in the industry.