What Is Pipeline Management

Information about each transaction is entered into special cards that can be displayed in the form of a list or kanban board for better visualization of progress. So what is pipeline management?

Learn About the Benefits of Pipeline Sales Management

The task of any business is to make a profit, and the sales pipeline will help it in this. For a stable income, you need control of all processes. After all, how to increase income if the manager does not know how the sales department copes with the flow of applications?

A pipeline is just one of those tools that are indispensable here. Thanks to him, the manager monitors the status of the client, and the head controls the work of the entire department. What is a pipeline, how to use it in management, and what does a CRM system have to do with it, you will now learn from this article. A sales pipeline is a summary that contains detailed data for each customer. It displays:

  • the stage of completion of the transaction;
  • the amount, the name of the manager;
  • the probability of closing the transaction;
  • the period of the purchase and other information.

Most often, the sales pipeline is part of the functionality of the CRM system, but it may well be a spreadsheet in Excel. However, transactions do not always take place by mutual agreement of the parties involved. It is not uncommon for a target company to seek to resist a merger. Therefore, in the world practice of corporate governance, it is customary to divide transactions into friendly and hostile.

Additionally, the pipeline can include the number of days at each of the stages, the number of days that have passed since the previous movement of the client to the new stage, and much more, which the head of the sales department considers necessary. It is not recommended to clutter up the statistics with a lot of not the most important indicators. It is optimal to use no more than nine of the most important parameters.

How to Correctly Predict Future Revenues?

The company can plan only those indicators that it is able to manage, for example, most of the expenses. Other indicators – demand, risks, actions of competitors – can only be predicted. When drawing up the budget of an enterprise, the main attention is paid, as a rule, to its expenditure side, and the revenue side is not sufficiently detailed and often not substantiated. The correct choice of methods for forecasting the company’s income and taking into account all the significant factors.

Be careful with predicting future revenues. They are good (sometimes better than all other methods) to repeat the available data. But when it comes to the forecast – they are stormy. Depending on the degree of the polynomial, the tail of the graph (actually, the forecast) can bend in one direction or another. And the higher the degree, the higher the flexibility of the schedule and the likelihood that it will bend in the wrong direction.

If you have statistical data with time dependence, you can create a forecast based on it. This creates a new worksheet in Excel with a table containing the statistical and predicted values and a chart showing them. With a forecast, you can predict things like future sales, inventory requirements, or consumer trends. We divide the forecast calculation process into 3 parts:

  1. Calculation of the trend value.
  2. Determination of seasonality coefficients.
  3. Sales forecasting.