We All Want Shorter Deal Cycles. Learn How Emerald Scientific Did It.

Sales Pipelines: A Comprehensive Guide for Sales Leaders

“In pipeline reviews or one-on-one coaching sessions, be merciless.”

Sorry, your browser does not support inline SVG.

A sales pipeline is the beating heart of your sales process. It visually represents where prospects are in the sales cycle, from the initial contact to the final handshake. Hence, effectively managing sales pipelines is crucial.

However, since sales pipeline management involves several moving parts like lead generation, nurturing relationships, and closing deals, doing it properly isn’t easy.

Designed specifically for B2B sales leaders, this comprehensive guide will help you streamline your pipeline, optimize your processes, and maximize your sales results. You’ll learn practical steps, proven strategies, and helpful tips to take your sales pipeline management to the next level.

Understanding Sales Pipelines

What is a Sales Pipeline?

A sales pipeline is a visualization of the journey a prospect takes from the first contact with your company to the final purchase. Essentially, it’s a snapshot of where all prospects are in the buying process, allowing your sales teams to estimate the upcoming sales and focus their efforts accordingly.

Sales Pipeline vs. Sales Forecast

As said above, a sales pipeline is a visual representation of where potential customers are within your sales process.

On the other hand, a sales forecast is a projection of what sales you expect to achieve in a given period. In other words, it’s the predicted revenue from the sales pipeline over a set timeframe. Sales forecasts can be based on historical data, market trends, and the status of current deals.

The alignment of your sales pipeline and sales forecast is vital to your overall business health. With concrete reality (pipeline) and insightful prediction (forecast), you can have a solid foundation for effective sales planning and a benchmark for performance evaluation.

Sales Pipeline vs. Sales Funnel

Sales pipelines and sales funnels aren’t the same.

A sales pipeline represents the detailed sequence of steps in the customer’s journey, from initial contact to the final sale. Each stage in the pipeline is tailored to guiding potential customers further along the path to purchase, demonstrating clear intent and commitment on their part.

Meanwhile, a sales funnel encompasses a broader spectrum, illustrating the general marketing and sales process, from creating awareness to closing a deal. It shows how marketing efforts generate leads that filter through the various stages, with only a few culminating in a sale. A sales funnel starts with a large pool of prospects at the top and narrows down as the prospects progress.

Sales pipeline and sales funnel are two sides of the same coin. Their simultaneous management is crucial for the overall sales strategy as it helps balance the wider marketing approach with the specific steps needed to close a deal. Understanding the interplay between these areas enables you to create a robust system that generates leads (funnel) and converts them effectively (pipeline).

Building a Sales Pipeline

Here are eight steps to create an effective sales pipeline:

Step 1: Define the Stages of Your Sales Pipeline

Defining the stages of your sales pipeline is the foundation for effective pipeline management. By clearly identifying and categorizing each stage, you create a structured framework for your team to understand where each prospect stands in the sales process.

Typical stages may include prospecting, qualification, proposal, negotiation, and closing. You can customize these steps to create a consistent structure that aligns with your organization’s sales cycle. This will ensure everyone on the team is on the same page.

Step 2: Identify the Number of Opportunities at Each Stage

Tracking the number of opportunities provides a real-time snapshot of your sales team’s performance and productivity. This information also guides you in allocating resources. Make sure you always know how many opportunities exist at each stage and which one should receive the highest priority.

Step 3: Calculate the Opportunities Needed to Reach Your Goals

This calculation is essential for effective sales planning as it allows you to set feasible sales objectives and aligns your team’s actions with overall business goals. It helps you understand the volume of leads your team needs to manage to achieve the desired sales outcome.

Step 4: Analyze Commonalities Among Converting Opportunities

Commonalities are patterns or shared characteristics you observe among different converting opportunities. These can include demographic similarities, the products or services prospects were interested in, the marketing or sales strategies that seemed to resonate with them, or their response to specific sales tactics.

Once you’ve identified commonalities among converting opportunities, you can use this information to refine your sales strategy. For example, if certain types of leads are more likely to convert, you might focus more on attracting and engaging similar leads. This targeted approach can improve the efficiency and effectiveness of your sales process.

Step 5: Adapt Your Sales Process Based on Data Insights

Make strategic adjustments to your sales process based on what you’ve seen from analyzing your sales data. For example, you might invest more in the lead sources that produce high-quality leads or provide additional training to your sales team to improve their close rates.

You should also monitor the impact and iterate your strategies as needed. The sales process is dynamic, and market conditions can change. Hence continual learning and adaptation are necessary.

Step 6: Continuously Add Leads to Your Pipeline

Not every lead will move through a pipeline to become a customer. Some may lose interest, choose a competitor, or fall out of the pipeline for various reasons. Because of that, it’s essential to constantly look for new leads.

By continuously adding leads to your pipeline, you can keep your pipeline full and ensure a steady stream of sales. You can also maintain a healthy sales process and increase the likelihood of meeting your sales goals.

Step 7: Maintain the Health of Your Pipeline

Regular maintenance, including ongoing monitoring, updating, and data cleaning, ensures your pipeline is always an accurate and effective tool for your sales team.

A well-maintained pipeline also improves forecasting accuracy and aids in strategic planning, making it an essential part of successful sales management.

Step 8: Regularly Clean Your Sales Pipeline

Remember that effective sales pipeline management isn’t a one-time task but an ongoing process that requires regular attention. This means removing outdated or irrelevant opportunities and keeping your pipeline up to date. By doing so, you create a clear and focused pipeline, leading to better decision-making and more successful sales outcomes.

Running a Sales Pipeline Review

Follow these steps to run a sales pipeline review:

Step 1: Analyze Rep Performance Using CRM Data

The foundation of an effective sales pipeline review lies in the accurate analysis of sales reps’ performance.

CRM data offers valuable insights that can guide your analysis. Analyzing this data allows you to closely monitor sales metrics to understand individual strengths and weaknesses. Consequently, this can lead to informed coaching and personal development, which in turn help improve overall team performance and increase sales revenue.

Step 2: Summarize Each Deal Quickly During the Review

When reviewing a sales pipeline, time is of the essence. Each deal needs to be summarized quickly and comprehensively to ensure the team stays focused and informed. By doing this, you can ensure reviews are productive and valuable and also encourage accountability within the sales team.

Step 3: Develop Action Plans and Next Steps for Each Deal

For each deal in the pipeline, develop a clear action plan that outlines the next steps. This helps your reps understand the path to success and encourages proactive behaviour. Note that you should tailor your action plan to each deal and consider unique variables like prospects’ needs and competitive landscape.

Transparency and open communication are also critical to a successful sales pipeline review. This means fostering an environment where reps feel comfortable discussing challenges, asking questions, and sharing insights. By encouraging open dialogue, you can gain a clearer understanding of each deal and are better equipped to provide constructive feedback and targeted coaching.

Cleaning Up Your Sales Pipeline

Here’s how to clean up your sales pipeline:

Step 1: Identify Prospects Exceeding Average Sales Cycle Time

The average sales cycle time is the typical duration it takes for a prospect to move from the initial point of contact to a successful sale. If a prospect has exceeded this average time without significant progress, you should reassess their potential for conversion.

When analyzing prospects, focus on their engagement level, requirements, and potential roadblocks in decision-making. This is crucial because spending time on prospects that are unlikely to convert into sales can lead to wasted resources and opportunities. If prospects seem unresponsive or not worth the effort, consider removing them from your pipeline and focus on other, more promising leads.

Step 2: Use a Sales Breakup Email as a Last Effort With Prospects

When a prospect goes cold or stalls in the sales pipeline, a sales breakup email can be a powerful last-ditch attempt to rekindle their interest. A breakup email is a final, strategically crafted message designed to elicit a response, clarify the prospect’s intentions, or bring closure to the sales process.

Crafting an effective breakup email requires careful balance. Be assertive without appearing desperate, put yourself into your prospects’ shoes and focus on delivering values. Using empathy, clear messaging, and an open-ended question can boost your chances of sparking a response. Remember, the goal isn’t just to sell but to understand whether there’s potential for a future business relationship.

Step 3: Ensure Data Accuracy and Update Information

A small error or oversight on your sales pipelines could lead to a misunderstanding or missed opportunity, affecting overall sales performance.

Regular data validation is crucial in maintaining the integrity of your sales pipeline. This involves verifying contact information, updating prospect details, and capturing essential notes from each interaction. By doing that, you can ensure they’re making informed decisions based on the most relevant insights.

Step 4: Regularly Review and Maintain Your Sales Pipeline

Your sales pipelines need consistent review and maintenance to stay effective. The benefits of this activity are twofold.

First, it provides a clear snapshot of the sales process, helping your reps identify patterns, predict trends, and spot potential issues before they escalate.

Second, it promotes agility, allowing your reps to quickly adapt their strategies to changes in the sales environment.

Regularly reviewing and maintaining your sales pipeline is therefore crucial to driving successful sales outcomes.

Effective Sales Pipeline Management

Sales pipeline management involves the oversight, measurement, and strategic execution of activities within sales pipelines. According to Harvard Business Review, “pipeline management includes how the sales pipeline is designed, how it is measured, and how it is used to drive sales rep performance.” Sales leaders employ it to understand the overall health of their sales operations, identify potential bottlenecks, and devise strategies to push deals towards closure.

A well-managed sales pipeline offers a heightened level of visibility. By understanding exactly where each prospect stands in the sales funnel, you can allocate resources, prioritize tasks, and identify potential roadblocks more effectively. Such transparency enables you to improve efficiency and optimize your sales strategies.

Accurate sales forecasting is another significant benefit of effective pipeline management. With a clear view of the pipeline, you can predict revenue more precisely, making it easier to set realistic goals, plan budgets, and manage expectations. This accuracy, in turn, supports strategic decision-making and facilitates sustained growth.

It should also be emphasized that effective sales pipeline management can lead to better customer relationships. With more insights into the buyer’s journey, sales reps can engage with customers meaningfully and fulfil their needs at every stage. In this way, pipeline management isn’t just about making sales—it’s also about fostering connections, building trust, and promoting customer satisfaction.

Understanding Sales Pipeline Velocity

Sales pipeline velocity shows you how quickly prospective sales convert into actual revenue. It isn’t an isolated factor but is influenced by other critical elements like opportunity selection, deal size, and win rate.

A high velocity indicates a healthy pipeline where deals are quickly closing, while a low velocity suggests stagnation and inefficiencies that need to be addressed.

To optimize sales velocity, you need to establish and communicate clear criteria for your team to use when qualifying prospects. This is essentially the function of lead scoring – a systematic approach to rank prospects based on their potential to convert into a customer. Effective lead scoring helps sales teams focus on high-quality leads, thereby improving the overall velocity of the sales pipeline.

How to Calculate Sales Pipeline Velocity

You can calculate your sales pipeline velocity using this formula:

(Number of deals in pipeline * Average deal size * Conversion rate) / Length of sales cycle

  • Number of deals in your pipeline: How many potential sales do you have at any given time? Keep in mind that a healthy pipeline isn’t just about quantity; the quality of the deals matters just as much.
  • Average deal size: The average revenue you expect to receive from each deal in your pipeline.
  • Overall conversion rate: The percentage of prospects that become customers.
  • Length of your sales cycle: The average time it takes for a prospect to move from the first interaction to the closed deal.

Analyzing Your Sales Pipeline

Properly analyzing the sales pipeline allows businesses to forecast revenue, plan resources, and gauge overall sales health.

Win rates, conversion rates, and pipeline coverage are the most vital metrics you need to track:

  • A higher win rate indicates a well-executed sales process and a team skilled at closing deals. Conversely, lower win rates signal room for improvement in the sales approach or team performance.
  • Conversion rates offer an understanding of the journey leads take through the sales funnel. By tracking this metric, you can identify bottlenecks and areas that require a more targeted approach.
  • A deficiency in pipeline coverage may hint at the need to focus more on lead generation. Meanwhile, surplus coverage may indicate an opportunity to upraise sales goals.

Gaining Sales Pipeline Visibility

Sales pipeline visibility is crucial for B2B sales leaders as it provides a clear perspective on the overall health of sales operations. This transparency equips them with a comprehensive understanding of the sales process, sales performance, operational planning, and resource location.

Furthermore, with higher visibility of sales pipelines, sales leaders can foster accountability among sales teams. They can also identify areas where coaching or additional training may be necessary, promoting continuous improvement and driving sales success.

Sales Pipeline Reviews vs. Sales Forecast Reviews

Sales pipeline reviews and sales forecast reviews serve different yet complementary purposes in managing sales activities. While pipeline reviews ground the sales team in the present reality, forecast reviews help align current actions with future goals.


  • Sales pipeline reviews analyze current deals, stages, the likelihood of closing, and potential hurdles.
  • Sales forecast reviews project future sales based on historical data, trends, and current pipeline status.

Structuring a Sales Pipeline Review Agenda

A well-structured sales pipeline review agenda helps facilitate discussions and decision-making.

Your review meeting should include an introduction, objectives, and key points to discuss. This sets the stage and brings the team up to speed.

The next steps are reviewing your sales reps’ pipelines individually and collaboratively. Ask for their feedback and recommendations on how to improve overall performance. Then, strategize an action plan that benefits all sales reps.

Finally, wrap up the meeting with a summary and action items recap. This ensures everyone is on the same page with their responsibilities moving forward.

Build Your Sales Pipeline Today

Sales pipeline management is critical to driving consistent sales growth and achieving success in today’s competitive business landscape. By implementing the strategies and tips in this guide, you can proactively optimize your pipelines and maximize your revenue potential.

Core UX Writer at Booking.com

Lavender Nguyen is a Freelance Content Writer focusing on writing well-researched, data-driven content for B2B commerce, retail, marketing, and SaaS companies. Also known as an Email Marketing Specialist, she helps ecommerce B2C brands develop high-converting, customer-focused email strategies.