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The sales department is a key to corporate success more than ever before. It faces
new challenges in a time when the Internet has changed a sellers market into a
buyers market. Sales and the salespeople who do sales do not get the credit
they deserve in many companies. That has to change.
To develop innovative IT solutions for sales, businesses are called upon and
required to assign greater value to sales and all the managers and skilled
employees working in sales. In the E-booklets, I discuss that sales management
software in the future has to have a completely new approach to sales.
Nikolaus Kimla
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Content
Pipeline Management:
The Backbone of Your Enterprise 4
Pipeline Management:
Critical to Attaining Company Goals 8
Pipeline Management:
A Self-Sustaining Success 12
Pipeline Management:
The Vital Importance of Automation 16
Contact 28
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Sales Pipeline Management
Much has been written (and spoken of) regarding the need for an accurate sales
process also known as sales pipeline management. Pipeline management means
having your sales cycle from lead to close laid out in exact steps, each of which
must be taken to obtain a successful sale. It might also be called opportunity
management.
Scale of Possibilities
Companies generally fall into a rough range of possibilities with regard to pipeline
management:
Fixed pipeline
A sales pipeline is established and made mandatory, and is used for sales as well
as forecasting and analysis. Periodically it might be evaluated for effectiveness
and possible improvements, but it remains relatively inflexible.
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Sales Pipeline Management
Flexible Pipeline
This is the method by which the most successful companies operate. Feedback is
consistently elicited from salespeople as to the pipelines accuracy and reflection
of the real world. The pipeline is adjusted whenever needed to reflect necessary
changes in the sales process, or where a step is found out-of-place or unneces-
sary. In addition to the sales organization, the pipeline is utilized by many other
departments in the company.
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Sales Pipeline Management
A CRM tool must be intuitive enough that reps not only can easily make use of it,
but they actually enjoy it. This ease-of-use must spread throughout the company,
so that other departments such as marketing, development and finance will be
able to easily access it and utilize its valuable data.
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PIPELINE MANAGEMENT:
CRITICAL TO ATTAINING
COMPANY GOALS
2
Sales Pipeline Management
In many articles, books, seminars and webcasts over the last few years, the sales
process also known as pipeline management has been repeatedly empha-
sized. Pipeline management means isolating each of the necessary steps in a sales
cycle, and establishing them and making sure they are followed.
What may not be clear until you take a closer look is the fact that accurate and
effective pipeline management is essential to the attainment of long-term
company goals. For that reason, pipeline management might also be called
opportunity management.
Achieving Priorities
A recent report, the Growth Team
Membership Sales Leadership Priorities
Report 2013, listed these as the priorities
for companies in 2013:
It is interesting to note that none of these are possible without flexible, intel-
ligent pipeline management. The first priority sets the stage; it is making sure
a pipeline is wholly accurate. But the remainder of these priorities can only take
when that is done.
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Sales Pipeline Management
Customer Strategies
The next priority on the list, that of understanding customer needs, not only
comes from interacting with customers and documenting the results, it comes
about through having a pipeline clearly and accurately laid out, and carefully
analyzing it. From where do leads come, and why? What are the common
customer issues stated in the first interviews? How are customers reacting
to your product or service? How often must customer service or support
become involved, and what are the results? Answers to these and similar ques-
tions will all be available in a properly executed pipeline, and
will lead to a full understanding of customer needs.
e
ionnair
Quest any From this understanding comes the devising of
Comp
effective strategies both for existing customers
l Statistics and for prospects. Based on pipeline data, you
Annua
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Sales Pipeline Management
Likewise the next priority defining and implementing metrics to evaluate critical
sales activities is established with relative ease when a standard report can be
run based on each of the steps throughout the pipeline management stages.
Forecasting
It is only with solid and realistic pipeline man-
agement in place that accurate sales forecasting
can occur. With each potential sale properly
evaluated and rated at each step, and with
closing ratios isolated and understood, analysis
can be undertaken to show the potential result
of all the leads and sales within a pipeline.
Stepping further back, analysis can demonstrate
how many leads need to be obtained up the line
to accomplish a certain level of sales. An entire
enterprise can be shown what needs to occur
for the company to meet their goals.
CRM
All of this planning and implementation will not be possible without a flexible,
intuitive CRM tool. With such a program sales reps can easily name, accomplish
and report on priorities; sales management can readily view and evaluate sales
reps progress; and management and finance can accurate assess and forecast
sales.
You and everyone else in the company are working hard to ensure your company
goals are met. Take the one step that will provide the rocket fuel for attainment of
those goals: effective pipeline management.
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PIPELINE MANAGEMENT:
A SELF-SUSTAINING SUCCESS
3
Sales Pipeline Management
As discussed in many sales forums, articles and blogs these days (including our
recent articles), pipeline management also known as the sales process is
vital to sales and company expansion. Laying out the separate steps of the sales
process and making sure they are followed is the only way of bringing control to
sales, both for the salespeople and sales management.
A Real-World Example
From the CSO Insights Sales Management Optimization 2013 Key Trends Analysis
comes a true story that clearly illustrates how effective pipeline management can
lead to ever-increasing sales success.
That analysis isolated several highly successful tactics. For example, a sales-
person would offer to conduct an audit of the prospects current insurance claims
processing costs. It was found that, in deals that had closed, the prospect had
taken advantage of the audit offer twice as often as in deals that didnt close and
were lost.
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Sales Pipeline Management
This is a very good example of using pipeline management to clearly isolate suc-
cessful sales methods. Once such methods are discovered, they can be put to use
by the entire sales force and result in higher profit and attained company goals.
Lead Generation
Company sales organizations are constantly on the lookout for great sources of
sales leads. They may be ignoring one that is sitting right before them: their very
own pipelines.
Since word of mouth is the most powerful type of lead a company can obtain
(per countless analyses of leads through the years) it is also very advantageous
to obtain permission from your customer to use their name when contacting the
leads they have given you. Or, if at all possible, coax your customer to email or call
the lead before you do with their recommendation of your product or service.
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Sales Pipeline Management
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PIPELINE MANAGEMENT:
THE VITAL IMPORTANCE
OF AUTOMATION
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Sales Pipeline Management
Pipeline Steps
When developing the sales process into discreet pipeline steps, automation must
come in on the ground floor. At the very least, the IT department must be fully
advised of the various sales process steps, once they are decided upon and imple-
mented, so that these steps can be automated for use.
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Sales Pipeline Management
Sales Use
It is the on-the-ground sales force that will be making the most important use of a
CRM application. Their time is obviously quite valuable minutes or hours spent
not selling cost the company money. That time can be wasted if a salesperson
must hunt for needed information, and drastically wasted if that needed informa-
tion cannot be found because there was no way for it to be input in the first place.
Once again, the choice of CRM application is critical. It must be intuitive and easy
for sales reps to learn, access and constantly use. It could even be posed as an
objective that the application be enjoyable.
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Sales Pipeline Management
With automation given its proper priority in relation to sales pipeline manage-
ment, pipeline management truly becomes opportunity management.
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CRM (CUSTOMER
RELATIONSHIP MANAGEMENT)
AND BOOMING YOUR
5
COMPANY
Sales Pipeline Management
Contact Management
The original purpose of CRM was to record
contact information for a prospect or a
customer, and to provide information about
the importance of various personnel within
a company and details of interaction with
them. Scheduling was also part of early
contact management systems; a sales rep
could scroll through an application and put
together a list of calls or visits for the day.
Or, a more advanced application would cull
through the database itself and provide a
to-do list for a particular day.
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Sales Pipeline Management
to buy, the sale could be shown as booked with a dollar amount attached to it.
And, of course, closed sales could be shown.
CRM software, for the first time, made possible the visualization and overview of
a companys sales where they stood, how much they could expect to make in a
certain period of time, and how various sales reps were performing. To varying
degrees CRM customer relationship management gave sales management and
executives a clearer view of sales than
had been previously available.
Adaptation
For all the years it has been around, however, a critical stumbling block for CRM
customer relationship management has been adaptation. A CRM solution can
be sold to a company and implemented, but employees have a tough time under-
standing it, or find it doesnt closely enough reflect actual operations, find it too
complex, or simply too time-consuming. Executives and sales management cannot
easily use CRM to perform analyses or forecasts, and end up sticking to methods
they have always used. Additionally other departments in the company, such as
R&D or marketing, never learn about various options of the CRM that could assist
them in their jobs, so never take advantage of them.
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Sales Pipeline Management
While it is easy to blame a particular CRM product and its features, it is often a
lack of knowledge of its use rather than a faulty CRM product. Training in its use
has been weak, or the software vendor was lax in ensuring its customer really
understood the product. Once a CRM is up and running, it is much tougher to
get a CRM trained in as day-to-day work and putting out fires gets in the way of
trying to learn something new.
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WHERE CRM CAN GO WRONG
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Sales Pipeline Management
But CRM can and often does become almost more of a hindrance than a workable
solution. Why does this occur, and what can be done about it?
CRM Priority
Within a companys overall budget,
automation is very often given a low Template designer
(or at least a lower) priority. While Sales Units
Accounts
the reasons for this can be and are Sales Unit
Contact
Ranking
the subject of endless debate, the net
effect is that adequate automation is
Product depart.
not provided for areas of the company
that truly need it. This is probably most Sales Team dep.
The solution is for a company to first fully evaluate what it needs in terms of
automation and CRM system to fully achieve its goals, without consideration of
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Sales Pipeline Management
budgetary constraints. Then find a way to meet those needs within or more closely
within the companys budget.
Where the above is not done, the CRM implementation can come off, to quote
an overused phrase, like a square peg being forced in a round hole. In the end, it
simply wastes very valuable time, morale, and resources.
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Sales Pipeline Management
The result is a considerable expenditure with no return. Sales reps spend valuable
sales time inputting information that cannot be properly used. Analysis and fore-
casts will be inaccurate.
It would well behoove any company that finds itself with ineffective CRM
(customer relationship management) to take steps to reverse the problem, using
the above as a loose guideline and find its way to true prosperity.
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Contact
Website: http://pipelinersales.com/
Email: info@pipelinersales.com
Phone: 1-888-843-6699
Pipelinersales Inc.