What is a sales pipeline and how do you build one?

Sales pipeline is a visual representation of the different stages of the sales process. It provides sales teams with a clear overview of the opportunities that are at various stages of the sales process. This information helps them to determine which deals to prioritize, where to allocate their sales efforts, and project their expected revenue for the upcoming months based on the current deals in the pipeline.

Building a sales pipeline is a critical component of any successful sales strategy. A well-designed sales process is an essential tool for account executives to achieve their sales goals. With a defined sales process in place, account executives can effectively guide prospects through each stage of the buying journey, from initial contact to closing the deal.

The first step in building a sales pipeline is to define the stages of the sales process. This will vary depending on the company and the type of products or services being sold. A typical sales pipeline can be broken down into five stages: prospecting, qualifying, proposing, closing, and follow-up.

How does a sales pipeline differ from a sales funnel?

A sales funnel is a theoretical model that describes the buyer journey from awareness to purchase, this typically includes your marketing activity. A sales pipeline, on the other hand, is a visual representation of the sales process and tracks the progress of individual deals as they move through the various stages towards closing. The main difference is that a sales funnel is focused on the buyer's journey, while a sales pipeline is focused on managing and tracking individual deals.

How can you effectively manage and prioritize leads in your sales pipeline?

Before we jump into the topic. Effectively managing and prioritizing leads in your sales pipeline is crucial to achieving success. To do this, you need to have a clear understanding of where each lead is in the pipeline and the likelihood of them closing. By analyzing key metrics such as the number of deals, average deal value, and win rate, you can prioritize your efforts and allocate your resources accordingly.
Beside that it you could consider tracking existing and new customers and compare the win rates.


This is the stage where sales representatives identify potential customers or clients. This can be done through various methods such as cold-calling, email marketing, social media outreach, or attending networking events.
Meow gives you the ability to exclude pipeline stages from your forecast, there might be stages in your pipeline that are not relevant for a forecast.


Once a lead is identified, the next step is to determine whether they are a good fit for the product or service being sold. This stage involves gathering information about the prospect's needs, budget, decision-making process, and timeline.


In this stage, sales representatives present their proposal or solution to the prospect. This can involve product demonstrations, sending proposals, and answering any questions or objections the prospect may have.

Closed Won:

If the prospect is interested in moving forward, this is the stage where the deal is closed. This involves finalizing the terms of the agreement, such as price, delivery, and payment terms.

Once the stages of the sales process are defined, the next step is to identify the key metrics that will be used to track progress through the sales pipeline. These metrics include the number of deals, average deal value, average win rate, sales cycle length, and pipeline value.

The number of deals refers to the total number of qualified opportunities that are actively being pursued by the sales team at any given time. This metric is essential for effectively managing resources and making informed decisions about where to allocate sales efforts.

Average deal value is the estimated potential revenue for each deal in the sales pipeline. By estimating the potential deal value, sales teams can make more accurate revenue projections for the business.

What are some common mistakes to avoid when building a sales pipeline?

Building a sales pipeline is not an easy task, and there are several common mistakes that businesses make when creating one. Here are some of the most common mistakes to avoid:

Not defining the stages of the sales pipeline:

The sales pipeline must have defined stages, each with specific actions and metrics associated with it. Not defining these stages can lead to confusion, lost deals, and poor forecasting. In addition having no defined stages might keep deals in the same stage even if they are progressing so you are loosing the ability to report progress correctly.

Overcomplicating the pipeline:

While it's essential to have a defined pipeline, businesses can sometimes overcomplicate it. A complex pipeline can make it difficult for sales representatives to manage deals effectively, leading to missed opportunities.
Imagine you would track each of your customer calls as a separate stage on the pipeline, this would not help you at all predicting your sales success. It is important to track relevant updates on deals.

Ignoring data:

Building a sales pipeline requires data analysis to identify trends and opportunities for improvement. Ignoring data or relying on outdated information can hinder the pipeline's effectiveness.
Everyone falls into the trap from time to time to believe things that are not there, a sales pipeline should be accurate in terms of reporting, be carefull reporting progress even if there is no clear sign from the customer to move forward.

Focusing only on closing deals:

While closing deals is the ultimate goal, businesses must also focus on the actions that lead to closing deals. Focusing only on the end result can lead to missed opportunities and poor forecasting.

For most business it is key to build a long-term relationship with customers, just closing one deal while ignoring your customer satisfaction can harm your long-term success. Think of every deal in the perspective of selling again to the customer

Not updating the pipeline regularly:

The sales pipeline must be updated regularly to reflect changes in the market, new opportunities, and lost deals. Neglecting to update the pipeline can lead to inaccurate forecasting and missed opportunities.

Develope a habbit over time updating your pipeline, this can be after every call or once a week.

By avoiding these common mistakes, businesses can create a well-designed sales pipeline that helps sales representatives manage deals more effectively, close more deals, and ultimately boost revenue. process.

In conclusion, building a sales pipeline is critical for any business that wants to achieve its sales goals with greater efficiency and effectiveness. By defining the stages of the sales process, identifying key metrics, and continuously improving the process, sales teams can work smarter, not harder, and focus their efforts on deals that are most likely to close. With a well-designed sales process in place, account executives can effectively guide prospects through each