1. Establish a Sales Goal
A healthy pipeline centers on having enough good leads in the works to meet or exceed your sales goals. Start by establishing clearly defined revenue objectives. “From there, you can work backwards into what constitutes a healthy pipeline,” says Julia Kline, small-business coach and author of the best-selling book The Entrepreneur’s Guide to Sleaze-Free Selling.

2. Understand Your Close Ratio
Sales reps often want to know if there’s a correct number of leads to have in a pipeline, but there isn’t a single magic number. A rep’s proper number of pipeline leads depends significantly on his or her personal close ratio. Thus, reps must know how many sales they typically close per number of leads they get. “If you close 50% of your leads, then you need two leads in the pipeline for every one sale you hope to close to meet your goals,” says Kline.

3. Qualify Leads
Having a pipeline packed with scores of names may look impressive, but doesn’t necessarily do you any good. Quantity is only positive if the prospects in question also represent quality – meaning they have need of your services and can potentially be converted. A practical way to ensure you have quality leads is to pre-qualify prospects. “When you connect with potential leads, do a quick qualification procedure,” says David Blaise, owner of Blaise Drake & Co., a sales consultancy that specializes in the promotional products industry. “Ask a quick question or two to find out if they have a need for promotional items. Try to find out when that need will next come up.”

4. Categorize Qualified Leads
Once you’ve qualified a prospect, Blaise suggests filing them into one of several categories. Category one is for prospects ready to buy right now. Category two is for prospects who desire promotional items at a specific point in the future, but aren’t prepared to proceed at the moment. The third group is for would-be buyers who are generally receptive to investing in promotional products, but don’t have any particular marketing initiatives on their calendar. The final two categories are for disqualified leads and for unresponsive people. Obviously, don’t put disqualified leads in the pipeline.

5. Define & Organize
To maximize close rates, establish a sales process with clearly defined stages. This will help you smoothly guide prospects toward transactions. Have a system for managing your pipeline – a system that indicates which category buyers are in, where they are in the sales process, when to follow up, what the prospects’ interests may be, etc. Consider using sales tracking software to help. Being systematic and organized will help ensure no opportunities slip through the cracks. 

6. Work the Pipeline
Yes, it’s essential to make prospects who are ready to buy now your highest priority. But it’s also pivotal to devote chunks of time to nurturing the other leads in your pipeline. Be sure your sales process includes lead nurturing and follow-up. “When you do that, you get to a point where sales are converting on a consistent basis,” says Blaise.

7. Get Prospecting
Keep your pipeline stacked with prospects by devoting time to generating new front-end leads. “It can be helpful to define the type of customers you want to have,” says Blaise. “This helps you be more targeted in your approach.” Start building your lead list by asking satisfied clients for referrals. Attend networking functions and join networking groups. Leverage your network to make connections with ideal prospects in markets you’re already adept at serving. Identify growing niches you don’t currently work with and link up with prospects in those fields. Create online content that’s valuable to target buyers and share it through social media channels. 

Watch This

This video from Marketing 360 lays out the five keys for building a strong pipeline, including finding a good lead source, consistently following a solid process and working the entire pipeline to avoid “low” areas. Watch it below: