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What is Sales Pipeline?

A sales pipeline is a visual representation of the stages a potential customer goes through in the sales process, from initial contact to closing the deal. It helps sales teams track progress, forecast revenue, and manage opportunities efficiently.

Table of Contents

Full Definition

The sales pipeline breaks down the sales journey into clearly defined stages such as prospecting, qualification, proposal, negotiation, and closing.

This structured approach enables sales teams to prioritize efforts, identify bottlenecks, and forecast revenue more accurately.

Managing a healthy sales pipeline is crucial for sustaining predictable revenue and optimizing sales performance.

Examples

  • Provides clear visibility of deal stages

  • Helps forecast revenue and set targets

  • Improves focus and prioritization for sales reps

Benefits

  • Overemphasis on stages can delay progress

  • Poor pipeline hygiene can mislead forecasts

  • Neglecting pipeline management risks lost deals

Common Mistakes

  • Maintain regular pipeline reviews to ensure accuracy and maximize sales effectiveness.

Conclusion

Maintain regular pipeline reviews to ensure accuracy and maximize sales effectiveness.

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Other Related Terms

Check out these related terms or view all terms in the category Sales Terminology.

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