Whether we have a 3 day sales process or a 3 month sales process, we all need to manage our pipeline of sales. Here is a quick and easy way to understand what it is, how it can help and how you can manage your revenue using it.

1. THE ANATOMY OF A
SALES PIPELINE
Sales Meeting

2. The Body:
• Sales Steps
• The Brain: Probability of Closure
• The Heart: Weighted Target
• Sales Pipeline – A Quick Guide to
Understand Sales Pipeline
Management

3. Easy right?

4. Sales Pipeline Management
• Definition - A Sales pipeline represents your sales process
consisting of all your sales steps you need in order to sell
your product to your customer.
• Definition - Each sales step represents a single or group
of actions that need to be taken in order to complete that
specific phase of the sales process and move to the next
one within the sales pipeline.
• Funnel and Pipeline – Think of the funnel as the entry
point to the end of the pipeline

5. The Sales Funnel
Big at the Top
Smaller at the bottom
You want the
prospects that
are not ready to
buy to leave the
funnel to make
room for those
that are ready to
buy

6. Keep It Simple
• “ Having too many stages
in the pipeline is counter-
productive. Five is the
optimum number stages
in the pipeline. ” – DON
DALY
• A typical sales pipeline
could have the following
steps within the sales
process:
• Discovery
• Realization of Need
• Consideration
• Conversion
• Retention

7. Why is the Funnel Wide At The Top

8. Is Your Pipeline like This?

9. Or This?

10. Or This?

11. • The probability of closure shows you
the likelihood of selling your product
during that particular sales step.
• If you need to call 10 prospects in order
to close 1 at the end of the sales cycle,
you have a 10 % probability of closure
for that step
• A typical pipeline, as mentioned
previously, could have the following
probability of closures for each step:
• Initial Contact – 0%
• Qualification – 10%
• Meeting – 30%
• Proposal – 60%
• Close – 100%
Probability of Closure (Brain)
Managing Your Pipeline

12. Managing Your Pipeline
• Consider your opportunity as a
potential sale. In order to move
into the sales pipeline you need
to know three parameters.
• Who are you selling to?
• What is the value?
• What is the potential closing date?
• Each sales opportunity has its own
specific value
Weighted Target (Heart)

13. Weighted Target (Heart)
• “Weighted target is equal to the sum
of the total opportunity value in each
sales step multiplied by the
probability of closure for that step. ”
– DAVID BROCK
• If the probability of closure is 10%
for a specific stage, and you add a
value to an opportunity, then 10% of
that value contributes to the
weighted target

14. Example of Pipeline Management
• Let’s make a calculation (1 opportunity = $2,000)
• Initial Contact – 0 % x 35 opportunities = $0
• Qualification – 10 % x 20 opportunities = $4,000
• Meeting – 30 % x 10 opportunities = $6,000
• Proposal – 60 % x 5 opportunities = $6,000
• Close – 100 % x 2 opportunities = $4,000
• Weighted TARGET = $20,000 Sales Pipeline
• What happens if you start each month with these opportunities and
keep moving them through your pipeline, while gaining more?

15. Or, Start With The Sales Goal
5 New Clients
Each Month
5 New
Clients
This is an example for a
very modest 5 New sales
in a month
Using The Power of Five
Each step is a multiplier of five

16. Hot Prospects - 25
Determine Hot Prospects…
5 New
Clients
New Clients * 5 =
Hot Prospects
Needed
This is an example for a very modest
5 New sales in a month
To get 5 New Sales
you need 25 Hot
Prospects

17. Hot Prospects - 25
Qualified Prospects - 125
Determine Qualified Prospects…
5 New
Clients
Hot Prospects * 5 =
Qualified Prospects
Needed
To get 25 Hot
Prospects you
will need 125
Qualified
Prospects

18. Hot Prospects - 25
Qualified Prospects - 125
Determine Suspects…
Suspects - 625
5 New
Clients
Qualified Prospects
* 5 = Suspects
Needed
For 125 Qualified you will need 625 Suspects

19. Hot Prospects - 25
Qualified Prospects - 125
The Funnel…
Suspects - 625
New Clients - 5
625
125
25
5
Suspects in the top of the Funnel
Qualified Prospects in Middle of the Funnel
Hot Prospect in the Bottom of the Funnel

20. What is a Sales Pipeline ?
• A Sales pipeline is as a visual
representation of your sales
process where all your
opportunities are displayed
and neatly arranged according
to their phase in your sales
cycle.
• Behind each sales stage within
the sales pipeline is a set of
actions that need to be
completed in order to
successfully finish that stage
and move the opportunity to
the next stage.

21. What is a Sales Pipeline ?
• A Sales pipeline is your
performance analyzer that
keeps you focused on achieving
your sales goals and keep track
of the health of your sales
pipeline
• It’s an enormous mistake to stop
prospecting because your
pipeline is healthy right now.

22. THE ANATOMY OF A
SALES PIPELINE
Sales Meeting