In today's economy, it is more important than ever to ensure that your business is recession-proof. One of the key indicators of a successful business is consistent revenue growth. But how can you tell if your business’s revenue growth trend is up or down? It all comes down to understanding and managing your sales pipeline. Here’s what you need to know about creating and managing an effective sales pipeline.
What Is A Sales Pipeline?
A sales pipeline is a visual representation of the journey prospects take on their way to becoming customers. It also represents the potential future income that will likely flow into your business. Your pipeline helps to track a prospect from the initial contact to closing the sale. This process helps businesses understand how likely prospects are to convert into customers, track progress through each stage in the buyer’s journey, and identify any bottlenecks or opportunities for improvement.
How To Create And Manage Your Sales Pipeline
Creating and managing your sales pipeline starts with understanding what stages make up your sales process and what qualifies a lead as moving from one stage to another. Assign a $ value to each sales deal and also a % probability based on your confidence of winning the sale. Your total adjusted pipeline value should represent at least your minimum sales required based on your average sales conversion cycle.
Once your pipeline has been established, it’s important to constantly be working on filling it by continuously prospecting for new leads months ahead of when they are expected to close. Doing this consistently will ensure that there are always deals in motion so that when one does not close due to external factors, there are still potential closes within the existing pipeline to keep revenue growing steadily.
Recession-proofing your business starts with understanding why consistent revenue growth matters and ensuring that you have established strategies in place for tracking progress and trends over time. Creating and managing an effective sales pipeline will help you do just that by helping you focus on generating the required level of sales growth needed to keep your business healthy.
Don't have a Sales Pipeline in your business? Let's talk soon about how to set one up!
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