How To Define your Sales Pipeline

Defining the Sales Pipeline structure

At some point in the customer journey sales may be required to inform the customer about your product or service to help them to make a good decision about purchasing your product. In hubspot, this process is managed through sales pipelines within the sales hub. A sales pipeline structures the sales process by dividing the process into multiple stages. In your HubSpot environment, you can navigate to deals via CRM > deals and review the sales pipeline.

A standard setup for a project-based service provider might look something like this:

• Consultation Scheduled (alternative names: "Qualified to buy")
  • The buyer books an initial consultation to discuss their needs and challenges. This action is confirmed by a scheduled meeting invite. At this stage, you take a consultative approach to identify your customer's primary needs and challenges. By understanding their problems thoroughly, you then propose a so preparing a solution that aligns with their requirements and goals.
• Verbal Interest Confirmed
  
  • During or immediately following the consultation, the buyer verbally confirms their interest in the proposed solution.
• Term Finalization
  • After verbal interest is confirmed, both parties engage in a discussion to negotiate and finalize the specific terms of the project. This stage is initiated by an initial solution proposal and covers any follow-up adjustments to scope, pricing, deliverables, and timelines to ensure clarity and mutual agreement. 

• Out for signature
  • Based on the finalized terms, a comprehensive final proposal is created, outlining the complete scope, deliverables, timelines, and pricing. The proposal is then sent to the buyer via an electronic signature platform.

• Closed won
  • Congratulations! The potential customer has now officially turned into a customer by signing the contract. They have agreed to all terms and prices listed and are ready to move forward with the solution that has been presented to them. This is a crucial stage in maintaining momentum with onboarding and initial service delivery.

• Closed lost
  • Sometimes a deal falls through, and despite best efforts, it remains unsigned. This stage is to mark those opportunities, providing valuable data for future improvement. It is essential to record the reason for loss. Understanding common reasons for lost sales can help refine your sales approach and win more deals in the future.

This setup suits the sales process of most businesses selling a project-based service. When defining your own sales pipeline, the stages in your own sales pipeline should reflect your sales process as accurately as possible. Try to fit your current ongoing deals into the default pipeline and adjust the stages where needed. Deals can be created on the deal overview page, or on the page of a potential customer.

Some general tips when customizing the default pipeline:

• Each stage should be factual, inspectable and buyer-centric.
  • Factual - A step is factual if it’s based on actual actions that have been taken rather than a feeling or intuition you or the buyer might have.
  • Inspectable - A step is inspectable if there’s some sort of record that can be used to prove that the action has been taken.
  • Buyer-centric - Ultimately, it's the buyer's actions that will close the sale. The sales rep is just there to help. So as much as possible, base your deal stages on actions the buyer takes.
• Reflect On Your Sales Process:
  • The pipeline should accurately represent the steps your sales team goes through to convert a lead into a customer. Every stage in your pipeline should correspond to a specific phase in your sales cycle.
• Align With Your Customer's Buying Journey:
  • Align your sales pipeline stages to your customer's buying process. However, keep in mind that these are not the same thing. The customer journey involves the customer's experiences, emotions, and interactions with your company from first contact to long-term engagement. On the other hand, the sales pipeline represents the sequential steps taken by a sales team to convert a qualified lead into a customer from the company's perspective.
• Keep It Simple:
  • The pipeline should be simple and easy to understand for anyone in your team. Over-complicating the stages can lead to confusion and lowered productivity.
• Consistency is Key:
  • Ensure the stages of your sales pipeline are consistent across your sales team. Everyone should use and understand the pipeline in the same way to avoid miscommunication and increase efficiency.

Ideas for alternative stages stages:

• Presentation scheduled and Presentation conducted
  • This stage is useful when the sales process is accompanied with a demo meeting. Here, the salesperson presents how the product or service solves the customer's problems, demonstrating its value and unique benefits. It's a stage that requires tailored communication and persuasive skills, moving to the next stage based on customer feedback post-presentation.
• Evaluation:
  • The potential customer takes time to evaluate the proposal and compare it with competitors. The sales representative must maintain contact to answer queries, provide additional information, and address concerns.

Detailing the sales pipeline

A sales pipeline is more than just a series of stages; it’s a comprehensive framework guiding each deal from prospect to customer. To support seamless operations and a positive customer experience, a complete pipeline structure includes Key Data Points, Essential Tasks, Essential Documents, and Forms of Communication. These four pillars ensure that each stage is fully equipped to move the deal forward and align with the unique needs of your business.

1. Key Data Points
   Key data points are specific metrics and information critical to both the business operations and the delivery of your product or service. These data points go beyond typical sales metrics, focusing instead on what’s needed to provide the right solution. Examples include:
   • Product requirements: Custom features or specifications tailored to the customer’s needs.
   • Regulatory compliance needs: Industry-specific standards the product or service must meet.
   • Customer usage data: Expected frequency or volume of use, which informs capacity planning.
   • Location-specific details: Important for industries like logistics or installation services, where delivery or service location affects the offering.
     
     
2. Essential Tasks
   Essential tasks are key actions that must be completed at each stage to ensure consistent deal progress. These actions are often tied directly to the customer’s needs or the preparation required to deliver the service effectively. Examples include:
   • Needs assessment: Conducting an in-depth consultation to clarify customer requirements.
   • Technical validation: Ensuring the proposed solution is feasible with available resources.
   • Sending a quote: The action of sending the potential customer a quote.
   • Sharing The Implementation planning: Outlining initial steps for a smooth transition to delivery and sharing it with the customer.
     
     
3. Essential Documents
   
   Essential documents provide the sales team and the customer with the necessary information and formal agreements at each stage. These documents set clear expectations and guide both parties through the process. For each document, also specify which data points should be included and whether it is possible to standardize them. Standardized data points can be included among the key data points of the entire sales pipeline, while other data points can be added as open fields. Examples include:
   • Product specification sheets: Detailed technical specifications of the product or service.
   • Customized proposals: Tailored proposals that outline how the product or service meets the customer’s specific needs.
   • Service agreements: Detailed terms, conditions, and timelines to formalize commitments.
   • Scope of work documents: Clear outlines of deliverables and timelines to ensure alignment on what’s expected.
     
     
4. Forms of Communication
   Forms of communication define how to connect with the customer at each stage, with the goal of building trust and keeping them informed. Tailoring communication methods to each stage enhances the customer experience and ensures clarity. Examples include:
   • Initial inquiry response: Email or phone call to confirm the receipt of an inquiry and outline next steps.
   • Needs assessment meeting: Video conference to discuss requirements and address any questions.
   • Regular status updates: Periodic emails or calls to keep the customer informed of progress.
   • Final contract review: In-person or virtual meeting to walk through the final agreement and clarify any last questions.

Start defining your sales pipeline

Now that you are familiar with all the components, it is time to define the sales pipeline of your company. Creating a complete and detailed pipeline might not be immediately feasible. Instead, it’s often more effective to approach the process in stages, focusing on the most critical elements first. The order of priority is as follows:

1. List and define the deal stages
2. Determine the trigger for each stage
3. Clarify the responsibilities of the sales rep in each stage
4. Identify essential documents needed at each stage
5. List key data points that should be collected 
6. Define essential tasks for each stage
7. Specify the preferred forms of communication

Use the provided Blueprint excel sheet to fill in the details of your designed sales pipeline.

HubSpot Links

See your current deals and deal pipeline here:
CRM > Deals

Customize your sales pipeline here:
Profile & Preferences > Objects > Deals > Pipelines

Setup properties here:
Profile & Preferences > Properties > Deal Properties

Customize the deal records here:
Profile & Preferences > Objects > Deals > Record Customization

More information can be found here:
https://knowledge.hubspot.com/object-settings/set-up-and-customize-your-deal-pipelines-and-deal-stages?KBOpenTab