What are the common sales pipeline stages?

When deciding how to manage a sales pipeline, it’s critical to first understand the various stages associated with it. Pipeline management can typically be segmented into the following stages:

• Lead Generation: Identifying potential customers through various strategies such as marketing campaigns, social media engagement, networking events and more. This is one of the sales pipeline management best practices as it is essential for continuously fueling the pipeline with high-quality leads.
• Lead Qualification: Assessing the potential of leads to become customers by analysing their interest level, budget, purchase authority and need for your product or service. Effective lead qualification helps in focusing efforts on leads with the highest conversion potential.
• Proposal/Needs Analysis: Understanding customer needs and proposing solutions. Sales representatives engage with leads to gather detailed information, which is then used to tailor proposals or solutions that align with the customer’s requirements.
• Negotiation: Discussing pricing, terms and conditions. This stage requires effective communication skills and flexibility to reach an agreement that is acceptable to both the seller and the buyer.
• Closing: Obtaining a commitment from the customer, processing the sale and ensuring all contractual terms are met.
• Post-Sale/Retention: Following up for future sales and maintaining customer relationships through activities like seeking feedback, addressing post-sale queries, offering customer support and engaging in strategies to retain the customer for future sales.