Pipeline or Pipe Dream? Tips on Demystifying Your Sales Pipeline

The sales pipeline is one of the most valuable tools an organization can use to predict future revenue and align necessary resources to support business growth. Unfortunately, this pipeline is often misunderstood and underutilized in Distribution. Here are some common challenges with building and maintaining an effective sales pipeline—and how to overcome them.

Challenge 1: Definitions Matter—What is an Opportunity?

I’ve sat in rooms listening to leadership teams argue over what constitutes an opportunity. There must be clarity on what is and isn’t an opportunity. If your leadership can’t agree, how can your sales team?

Does the opportunity fit within your ICP or core competencies? What is the minimum dollar or margin threshold to create an opportunity? Do you assign the annualized volume of the opportunity or only what will be recognized in a period? What information do we need to determine if this is a qualified opportunity? Should recurring consumable or “flow” business be tracked in a sales pipeline?

Challenge 2: Understanding the Stages of Your Sales Pipeline

Just as important as defining an opportunity is the unified understanding of what the stages of your sales pipeline should be. These stages must align your sales process with your buyer’s journey. Too many stages create confusion, but a lack of adequate stages could challenge deal visibility.

Align your sales stages with your buyer journey. Some example stages could include:

1. New Prospect
2. Qualified Opportunity
3. Meeting/Demo
4. Solutions Presentation
5. Final Negotiations
6. Post-purchase

Challenge 3: Advancing Deals Through the Pipeline

A stalled or “pregnant” pipeline is a common challenge. Deals move through the early stages only to become stuck at the latter stages of the sale. This is often assumed to be due to a lack of closing ability by the salesperson, but it’s more likely that critical steps were missed earlier in the process.

Identify what needs to happen at every stage to move to the next stage. Determine the specific actions and questions that need to be uncovered and answered at each stage of the sale. What is needed to move a lead from qualified to meeting/demo? What is needed in the meeting/demo stage to deliver the proper proposal? Identifying these actions and answers will prevent your deals from stalling and shorten your sales cycles.

Challenge 4: Working the Pipeline

Salespeople often struggle with keeping their pipeline updated and managing their time effectively. This can lead to missed opportunities and inaccurate forecasting.

Implement regular pipeline management practices. Encourage your sales team to update their pipeline regularly, ideally as part of their daily sales activities or weekly. Use CRM tools to automate reminders and streamline data entry. Provide training on time management and prioritization to ensure salespeople focus on high-value activities. Establish a routine for reviewing the pipeline, setting clear expectations for updates and accountability.

Challenge 5: Pipeline Reviews and Accountability

Regular pipeline reviews are essential to maintaining accuracy and accountability. However, many organizations lack a structured review process, leading to inconsistencies and missed targets.

Schedule regular pipeline review meetings with clear agendas. Use these meetings to identify bottlenecks, address challenges, and celebrate successes. Ensure that each salesperson is prepared to discuss their pipeline in detail, including next steps for each opportunity. Utilize data-driven insights to hold salespeople accountable and make informed decisions about resource allocation and strategy adjustments.

If you are struggling with developing and managing an effective and healthy sales pipeline, let’s have a conversation about how I can help you.