Sales POP - Purveyors of Propserity
CRM Solutions: A Sales Funnel or a Pipeline?
Blog / For Sales Pros / Jul 22, 2013 / Posted by Nikolaus Kimla / 11721 

CRM Solutions: A Sales Funnel or a Pipeline?

Do you build your sales funnel process?

Are you wondering if a sales pipeline approach is better?

Yes, this might be a strange title for an article. But when you understand what I mean by these two terms—and more importantly what they signify for your salespeople and your company—they may never leave your vocabulary. This concept also has a considerable impact on your choice and deployment of a CRM solution.

In this post, I will show you the difference between a sales funnel and a sales pipeline and how these sales processes influence your CRM solution, and your sales:

The “Funnel” Approach

If you pour water through a funnel, gravity pulls the water from the top to the bottom.

Unfortunately this natural occurrence has been widely adopted and applied to sales. The idea has been that if one pours leads in through the top, they would almost automatically fall through the sales funnel, become opportunities along the way, and reach the bottom as closed sales.

The problem with this idea is that, within the sales process, gravity does not exist. You can have a tremendous number of leads, yet there is absolutely no assurance that they will become opportunities as they make their way down, and then become closed sales the “bottom of the funnel”. In order for leads to develop into real opportunities, and for sales to occur, someone must be actively involved with the process.

The “Pipeline” Approach

The concept of a horizontal sales pipeline is much closer to the reality of how sales are successfully made. Leads are brought in at one end of the pipeline, and then actively moved along through the various stages of the sales process by salespeople. At every stage, salespeople are applying their skills to move that sale further along the pipeline.

In order for a pipeline to function, a company must have an established sales process.

A sales process is that exactly prescribed series of steps from lead all the way to a close, that a sale must progress through. The sales process is normally evolved from the successful sales methods of proven sales reps, so that lesser experienced and even novice salespeople can follow in their footsteps. A sales process also makes sales management far easier, because everyone involved is “on the same page”.

Sales Funnel, Pipeline and CRM Solution

It will be found that a majority of CRM solutions on the market today are, unfortunately, based on the sales funnel” approach. Since this is not a reflection of how salespeople actually operate, such tools are not logical. Sales reps end up utilizing solutions of their own, such as spreadsheets and their own notes—making the data from these generally unavailable. Sales management cannot obtain needed data from CRM, so in order for them to be apprised of what is occurring with sales, they require cumbersome reports from sales reps as well as regular verbal briefings. This is a waste of time for both sales management and salespeople.

A CRM solution functions best when it is aligned to the sales pipeline concept. This means, first, that it mirrors the company’s sales process exactly—CRM is logically laid out so that any sale can be found at its appropriate stage of the pipeline.

A CRM tool so designed and utilized is a powerful enabler for salespeople. They can easily record and retrieve data on their sales pipelines, as that data fits logically into CRM. A sales rep can step back and view his or her pipeline, and get an accurate estimate of what is needed to finish off a successful month or quarter. And most importantly, salespeople are in control and on top of their sales, in every respect.

This approach for CRM also makes life much easier for sales management. Information needed for reports to higher executives can be easily obtained right from the CRM solution, and will not be constantly required in reports from salespeople.

So take a look at your sales operation and your CRM solution: is it more of a sales funnel, or a pipeline? Make it into the latter and watch your sales soar.

Read our other articles on CRM solutions and the pipeline.

About Author

A 30-year veteran of the computer industry, Nikolaus has founded and run several software companies. He and his company uptime iTechnology are the developers of World-Check, a risk intelligence platform eventually sold to Thomson Reuters for $520 million. He is currently the founder and CEO of Pipeliner Sales, Inc., developer and publisher of Pipeliner CRM, the first CRM application aimed squarely at actually empowering salespeople. Also a prolific writer, Nikolaus has authored over 100 ebooks, articles and white papers addressing the subjects of sales management, leadership and sales itself.

Author's Publications on Amazon

Inside this eBook, you’ll discover a series of chapters dedicated to some of the most important areas facing sales today. From the sales process definition to measurement, lead generation, and proven sales techniques, this comprehensive eBook will provide you with the information you need to…
Buy on Amazon
A common term in sales today is EQ, which stands for “emotional I.Q.” It means the skill a salesperson has in reading emotions and utilizing them in sales. It means empathy and a number of other abilities. The short version is, it’s an I.Q. when…
Buy on Amazon
People are smart to question the future of automation, for it has become part of everything we do. With the quantity of applications and technology around us, we yet still crave more. We become convinced of its power when our package is delivered from Amazon…
Buy on Amazon
Sales management isn’t a simple subject by any means. But at the same time, it does have some basic and somewhat simple fundamentals—and that is what we are bringing to you with this book. First come pain points of sales management, and how to overcome…
Buy on Amazon
Today the Internet has transformed a seller's market into a buyer's market and author Nikolaus Kimla states that the role of sales has never been more crucial. It is now time to give salespeople the role they factually can play: entrepreneurs within the enterprise. They…
Buy on Amazon
This is our public declaration of the intentions behind Pipeliner, and our objectives and motives for the product and for our company. Behind the development of that CRM application and, in fact, behind everything we do, we have a real cause. The story begins with…
Buy on Amazon
For the future, there must be a perfect balance of humans and technology. You have to have the perfect technology, andthen the perfect human being in application, performance and presentation. Today and into the future, it’s a 50-50 balance. In the past it was perhaps…
Buy on Amazon
The salespreneur is based on the concept of the entrepreneur. Before we can explain the salespreneur, you have to have some understanding of the entrepreneur. The entrepreneur plays a crucial role in any economic system. The entrepreneur seeks out information that can be utilized for…
Buy on Amazon
A seasoned captain would never leave port without a competent navigator. In a similar way, a sales manager might be a total ace at "commanding the ship" – at inspiring and coaching sales reps, pointing out and getting agreement on making quotas, and keeping everyone's…
Buy on Amazon
.
.
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. For information on cookies and how you can disable them, visit our privacy and cookie policy.