Pipeline management is a set of activities or multiple projects that ease the running of a business. It eases the process of business forecasts and fine tuning the sales process, improving time management and finally achieving higher sales. Often considered to be a part of the Customer Relationship Management (CRM) software, pipeline actually implies the flow of income coming into a business with new clients and channels, and helps to keep track of all the plans and steps taken for projects. A full pipeline provides far more opportunities at higher levels by converting leads into sales and feeding the sales closed, at the lower rung. Pipeline management is a process that helps businesses evaluate their own business opportunities and balance quality with quantity. Though it can be used to find solutions for diverse business needs, it is used primarily in the sales division of businesses. It helps to:
- Forecast future growth
- Track sales trends for individual clients and employees
- Calculate taxes for each project
- Track delays and identify reasons for them
- An effective tool for large businesses
Some tips for Pipeline Management
- Focus on sales staff more than managers- This helps bring out the best in each sales person rather than focus on the sales manager.
- Keep the sales pipeline with potential customers and not just everyone- Pipeline management will fail if anyone and everyone is added to the pipeline. In this case, more does not mean more sales. Effective sales hold the key to success.
- Divide customers into groups of actual, potential and fence sitters- Every business’ list of contacts has some customers who must be maintained, potential ones who must be pursued and fence sitters who are talk without substance, and must be kept away from the pipeline since they could be on either side of the fence.
- Nurture every lead- The CRM exercise brings a list of leads that can be pursued for conversion into customers. Each of these must be nurtured before they can be converted.
- Display efficiency and ask for references- An efficient sales staff makes customers happy and in return can always ask for references to tap new sources of business and get more customers. This is an opportunity that must not be lost.
- Have a clear picture of pipeline management- This is important for small businesses that do not have a clear picture of pipeline management even though the basic idea linked to it is going on in their minds.
- Model the pipeline according to the customer buying process- This should include an idea of how they buy, the stages of going to different suppliers, short listing a few and how they finally decide on one particular supplier.
- Pipeline management is more about managing rather than measuring- the process and the numbers game are more for analysis to aid management rather than being an end in themselves. The numbers have to be used to make changes and improve more than getting them right.
Pipeline management is an effective tool that can restructure the sales process and improve results by following some of the above mentioned tips.
