Successful sales managers manage their long sales cycle from start to finish. They resist the temptation to focus too much on one stage, such as closing sales. Instead they identify each stage of their customers
buying process and allocate their time and resources so that they can reach their sales goals consistently.
Management of the long-term sales cycle is called "pipeline management" and involves identifying sales stages, what needs to be accomplished in each stage, the resources to achieve each stage and the measurable key performance indicators (KPI) to monitor progress.
Benefits of good pipeline management
A mismanaged sales pipeline won't produce the results you want. Good sales pipeline management, on the other hand, can give you the following benefits:
Long-term focus
In many sales organizations, the pressure to produce revenue now— today, this week, this quarter— is so strong that it puts too much pressure and attention on the back end of the pipeline: closing the sale. By using good pipeline management techniques, you don't lose focus on the front end: prospecting for and developing opportunities.
Elimination of peaks and valleys
A well-managed pipeline improves your sales forecasting and helps you reach sales goals more consistently.
Allocation of resources to strategic, profitable opportunities Instead of taking the "shoot anything that moves" approach, sales professionals plan their approach to keep qualified opportunities moving along the sales pipeline.
Better follow-up sales opportunities
Not following up in a timely manner is a pipeline leak— and a waste of precious resources. Managing the pipeline from start to finish seals those leaks.
The message is clear: You can't afford to neglect precious leaks along the sales cycle.
Improving pipeline management
Good pipeline management conserves your selling resources and pays off in higher realized sales. Here are some ways you can improve pipeline management.
Balance your focus
You must balance your focus between long-term and short-term sales results. The pressure to make current daily, weekly, or monthly goals must not take undue attention away from seeking new opportunities and attending to every stage of the sales pipeline.
Apply discipline
Sales managers must keep an eye on the sales pipeline by establishing review points— points at which they review activities, probabilities, desired outcomes, and forecasting guidelines. Managers must establish clear standards for reviewing and evaluating the sales pipeline, and schedule reviews formats where the information is transparent and available in real time.
Spreadsheets - not effective enough
Take advantage of technology. Sales professionals use technology to achieve personal and organizational success. Helpful tools include customer relationship management (CRM) systems, webinars, webadvertsing and websurveying.
Better forecasting
Applying sound sales pipeline management techniques improves the accuracy of your sales forecasts and revenue projections. A sales pipeline that is well managed from beginning to end is critical to the success of any organization.
