Every company, no matter how large or small, rises or falls on the effectiveness of its sales force. And the effectiveness of the sales force rises or falls on the management of the sales pipeline. Here are 4 key reasons why employing a good sales pipeline management tool is a critical element of success.
1. Accurate Sales Forecasting
Being able to accurately forecast what sales will be closing, and when, is critical to the efficient operation of other functional organizations in the company such as accounting, manufacturing, and shipping. Accurate sales forecasting also helps sales managers in allocating additional resources to deals that may require them in order to close on schedule.
2. Identification of Truly Qualified Prospects
Less experienced sales people will often put deals into the sales pipeline that are more wishful thinking than real opportunity. By building certain qualifiers into the system, the sales managers can use them, along with his own experience, to easily identify those cases and either help the salesperson bring the deal up to standards, or remove the deal from the pipeline altogether. This also identifies a possible need for further training, especially if the standards are consistently not being met by newer salespeople.
3. Individual Salesperson Goals Monitoring
Sales pipeline management systems also allow management to monitor, in real time, how each individual salesperson is progressing toward achieving his sales goals. Even if sales forecasts are seasonally adjusted, an accurate projection of annual sales can be made if a good pipeline management system is in place. This individual monitoring enables management to see which salespeople are meeting their individual projections, and which are not. It will also help identify the need for additional coaching to help salespeople develop more realistic and accurate personal sales forecasts.
4. Individual Deals Monitoring
Monitoring individual deals as they make their way through the sales pipeline enables management to quickly identify cases where the progress of the deal is slowing down, or stopping altogether. This is critical not only because of the ripple effect is generates through the company, but because of the shift in the customer’s momentum toward closing the sale. Being able to quickly identify these slowdowns and stoppages positions management to take swift remedial action to get the sales process moving again in the right direction and at the right speed.
Implementing an effective sales pipeline management system will have a dramatic impact the success of your sales force, as well as the overall health of your company.
For expert help with managing your company’s sales pipeline, contact us online or call 650-265-4732.