Unlock the secrets to a healthier pipeline and sales growth.
The summer travel season got me thinking about sales. What would happen if you meticulously planned your cross-country trip, made sure your vehicle was serviced, and packed everything you needed but didn’t put enough gas in the tank? You’d either have to stop before you planned or risk running out of gas.
Sales is the same. CEOs and business owners often show us solid business plans executed by a tenured sales force and backed by a detailed marketing plan. However, year after year, growth remains anemic, with the number of meaningful new accounts barely growing. Why? They never had enough gas in the tank to get to their destination. In sales, “gas in the tank” is your pipeline.
In this article, we’ll examine pipeline benchmarking data and offer five suggestions for building a pipeline to propel growth.
Sales Pipeline Benchmarking Data
Let’s review benchmarking data to assess pipeline performance. Our business partner, Objective Management Group, recently analyzed the pipelines of 55 organizations representing 1,000 individual sellers. Their research identified two issues:
- Not Having Enough Opportunities in the Sales Pipeline
The first finding is that most sellers lack enough opportunities to meet their sales target. When asked to provide four closeable opportunities, fewer than half of the salespeople were able to do so. Meanwhile, 18% had three, 23% had two, and 10% had just one. When asked about four, the average salesperson could only account for three closeable opportunities. This finding occurred across all companies and industries. Only 4% of companies have more than 80% of their salespeople meeting the four-opportunity threshold.
This means most sales organizations are not meeting the minimum threshold for a healthy pipeline. They don’t have enough gas in the tank.
- Not Having High-Quality Opportunities in the Sales Pipeline
Even when opportunities are present, their quality is poor. The findings show that the average salesperson provided less than one of the three closeable opportunities that were genuinely closeable. Nearly 75% of opportunities that Salespeople thought were closable were actually early stage. They lacked critical elements such as decision-maker engagement, budget confirmation, or a compelling reason for the buyer to make a purchase. Only 3% of salespeople had four genuinely closeable opportunities.
Five Solutions to Get Your Pipeline Back in Business
- Conduct a Weekly Pipeline Review
Schedule weekly pipeline review meetings to keep track of all pipeline activity. Regular reviews help identify and address potential issues before they escalate, ensuring that deals do not fizzle out and that sales targets are met.
- Utilize a Sales Deal Scorecard
Implement a sales deal scorecard where salespeople answer standardized questions for each opportunity. This helps assess the stage and likelihood of closing for each deal. A consistent scoring system clearly shows opportunity viability and highlights areas needing attention.
- Cull Dead or Unqualified Opportunities
Encourage your sales team to remove dead or unqualified opportunities from the pipeline. This frees up time and resources to focus on more promising leads. Relentlessly culling non-viable opportunities ensures that your pipeline remains healthy and productive.
- Focus on Top of Funnel Volume and Bottom of Funnel Quality
Address both ends of the funnel by increasing the volume of leads entering the pipeline and improving the quality of opportunities lower in the funnel. This dual approach ensures a steady flow of well-qualified leads, enhancing the overall health of your pipeline.
- Use Sales Team Assessments
Conduct sales team assessments to understand each team member’s strengths and areas for improvement. They can provide insights into core selling competencies, helping you target skill development and improve overall sales effectiveness.
The Bottom Line
By leveraging data and employing these strategies, you can significantly improve the quantity and quality of your sales pipeline. Regular analysis and coaching will help you meet and exceed your revenue goals, ensuring your company’s continued growth and success.