Hello, my name is TImo Rein. In this short video I want to help you understand what is a sales Pipeline, and how managing it can help you grow your sales A sales pipeline is probably the most useful concept when it comes to sales it’s not a sales trick and it does not depend on luck So what is a sales pipeline? I’ll show you. I’m not a very good live drawer, so I’ve prepared an illustration on this white
board first you need to define the stages of
your sales pipeline Selling web design services for
example. These may be… “Prospect Chosen” in other words people who you think will have a need for your service and
might be potential buyers but you haven’t talked to them yet Then “Meeting Agreed”; people you’ve contacted and agreed to meet Then “Proposal Sent” People you know, need your service and who’ve asked for a quote which you’ve sent them. and then “Won”. Well obviously people who bought. and these are the people who are why we are in this business in the first place. if you’re selling real estate or cars
these stages may be different but the principle is the same. now the thing is, that not all prospects eventually buy. So the first thing you need to find out is, how many people you should contact to make one sale. Let’s put some customers in this pipeline. So out of 8 people I decide to call… These are the people that I think are my potential customers. After I call them up, let’s assume that out of these, 4 will agree to meet with me. 4 others however have no interest in meeting with me, and are lost. Now out of these 4 people I’ve met, I discovered that only two of them
actually have the need for what I’m offering and they ask for my proposal. So I sent them my proposal, while two others… were lost at this point. Out of these 2 proposals only one was successful, and became my customer. The other one for whatever reason, did not decide to buy. So what happened in this example? Out of 8 people I decided to prospect 4 agreed to meet with me and two of them got my proposals and eventually one decided to buy so in this example 50 percent stage-to-stage conversion. Now in real-life you validate these conversions by going out, doing the sales work, and in a month or two, you’ll see what the real numbers are. So, to make 1 sale I need to approach 8 people. Now if you want to make 2 sales I need to approach 16 people. and if I want to make for example 10 sales, then I need to approach 80 people. So to make a specific number of sales you need to do a specific number of
activities So that’s the trick with a sales pipeline.
This is how you guarantee sales results. of course you can also learn to increase conversions you can go after bigger deals or get people to move to the next stage
faster for example but that’s a topic for another video. Until next time.