No matter what kind of small business you have, you rely on a steady stream of leads to keep customers coming through the doors. From HVAC, contracting, towing, roofing, and plumbing companies to law firms, med spas, and medical facilities, every business needs a healthy sales pipeline to convert more prospects into loyal customers.
But what exactly is a sales pipeline, and what can it do for your business? This guide will answer all your questions, covering the different sales pipeline stages and benefits — setting you up for ongoing sales success.
What Is a Sales Pipeline?
Often organized in a customer relationship management (CRM) platform, a sales pipeline provides a snapshot of where prospects are in the sales process. As salespeople connect with potential customers at each stage, they move prospects along to the next stage.
For example, let’s say a customer submits a form on your website requesting a quote. The prospect goes into your sales pipeline as someone who has expressed interest in working with you. Now your salespeople can get to work — following up with a quote, booking a service call, and making the sale.
While all sales pipelines share some similarities, each company will have slightly different sales processes, depending on its products and services. Additionally, your buyer’s journey — the path to completing a purchase — might differ from that of other companies.
Given these variables, you need a sales pipeline that’s tailored just for your business. By understanding how your typical buyer moves through the sales pipeline, you can personalize each step of the funnel. With effective sales pipeline management, you can keep track of each prospect and more easily get buyers across the finish line.
Sales Pipeline Stages
Here are the key stages you’ll be moving your prospect through on the journey to a sale.
Generating Interest
You may generate leads from a variety of different places, including search engines, paid ads, social media posts, email marketing campaigns, and word-of-mouth referrals. No matter where your leads come from, you need to capture their information quickly to keep them in the pipeline.
So, if someone sees one of your social media ads for facial services, you’ll want to capture that person’s name and contact information and put it into your pipeline for prompt follow-up.
Qualifying the Lead
Not all leads are qualified, meaning not everyone who shows interest will fit into your ideal customer profile. Ideal customers are those who are most likely to benefit from your products or services and ready to take the next step. Once you speak with a customer, you can find out whether or not they’re qualified.
A caveat here is that even if someone isn’t ready to buy immediately, they may still become a qualified lead. That’s why the pipeline is so important; you can keep track of where every lead is in the process, nurture them, and hopefully earn their business.
Presenting a Solution
Qualified leads move on to the next sales pipeline stage where you present a solution to their problem. For example, if a prospect expresses a need to hydrate their skin, your medspa salesperson might suggest a HydraFacial or even explain your membership options.
The goal is to explain the value of your services and the results your customer can expect so that closing the sale is a natural next step.
Closing the Deal
You might not close every sale on the first try, nor should that necessarily be the goal. The last thing you want is to come across as pushy or desperate, as it may turn people away. Rather, seek to understand what customers need by listening deeply to their questions and concerns.
The more you aim to solve potential customers’ problems, the more naturally the sales will come — whether now or down the line.
Following Up Post-Sale
Your work is not done after you’ve collected payment and completed services. Following up afterward ensures customer satisfaction and encourages repeat business and referrals. It also gives you a chance to address any concerns or even ask for reviews and testimonials.
When you follow up, it shows you care and helps you build relationships. Over time, these interactions can add up to loyal customers. According to Gartner, 82% of customers who feel they gained value during a service interaction would repurchase or renew when given the opportunity to switch to another provider. There’s also a 97% chance of them sharing positive word of mouth. Yes, it pays to be attentive!
Why Managing Your Sales Pipeline Matters
Sales pipeline management isn’t just about staying organized. Consider the many benefits of keeping tabs on your prospects throughout the buying journey.
More Deals
Research shows that a well-defined sales funnel can result in a 16% higher deal win rate. In time, your funnel can become a well-oiled machine that helps you close more sales and discover new opportunities.
Lead Prioritization
Knowing which leads are on the verge of buying can help you prioritize the most valuable prospects. On the flip side, knowing when a deal might stall allows you the chance to step in to save it, whether by offering a discount or speeding up the service delivery timeline.
Predictive Revenue
As you move leads through your pipeline, you’ll begin to see patterns in how they convert or when they drop off. With deeper insights into the customer’s journey, you can make adjustments to your sales process.
Streamline Your Sales Pipeline With Townsquare Interactive
Your sales pipeline is often only as good as the software that helps you maintain and manage it. With Townsquare Interactive’s suite of services, you’ll have everything you need to attract, manage, and convert leads into loyal customers — all in one place. Our business management platform ensures every lead stays on your radar from start to finish.
Here’s how Townsquare Interactive can help:
- Web design and search engine optimization (SEO): A professionally designed website with local SEO helps people find your business online and explore what you have to offer.
- Automated communication: Email and SMS campaigns help you stay connected with customers and keep them engaged at each pipeline stage.
- Cloud-based CRM: Our CRM tools keep leads organized, ensuring smooth interactions and faster conversions.
- Social ads: We’ll help you attract fresh leads with targeted social media ads.
Additional features include integrated scheduling to manage appointments and billing tools to streamline payments. Every tool helps move leads through the pipeline and maximize your return on investment.
Now is the time to maximize your pipeline and earn more business. Request a demo today to learn more and get started!