Expert knowledge for digital decisions

What is a Sales Pipeline?

Short answer

A pipeline represents the journey from the first contact to the order in fixed stages – such as inquiry, qualified, offer, negotiation, won. Each sales opportunity is in exactly one stage. This makes it visible how much business is in progress and where it gets stuck.

Purpose of the Stages

Without a pipeline, the answer to "how is sales going?" is – "pretty good". With a pipeline: "18 opportunities, of which 6 are in the offer stage, total value 240,000 euros, average age 34 days."

The benefit lies not in the number, but in what stands out: If twelve opportunities have been in the same stage for weeks, there is a problem there.

How to Properly Define Stages

Based on verifiable events, not on gut feeling:

Poor	Good
Interest	Need and budget confirmed
Going well	Offer sent
Almost certain	Verbal commitment, contract under review

The transition to the next stage must be tied to something that has happened – otherwise, opportunities move based on optimism rather than progress.

How Many Stages

Four to six. More will not be maintained, fewer do not provide any information.

The Two Most Useful Metrics

Duration per Stage. Where is it getting stuck?

Transition Rate. Of ten offers, how many become orders? This number makes planning possible.

The Most Common Mistake

Deleting lost opportunities. They contain the most valuable information: why. Without a reason for loss, nothing can be improved.

Key facts

Number of Stages: Four to six
Stage Transition: Tie to verifiable events
Never Delete: Lost opportunities along with reason