Every sales leader wants to make “data driven” decisions,  but it’s difficult when you are drowning in numbers. The life raft metric for leaders to understand their team’s performance is Sales Pipeline. This metric forecasts short- and long-term performance. More importantly, it helps a sales leader diagnose sales processes to change.

The pipeline is the total dollar amount of all opportunities estimated to close by a given date by stage. For sales leaders, this “funnel” indicates their likelihood of hitting revenue targets at a specific time. By examining its shape, you’ll understand:

  • Your probability of hitting the number in the short term
  • Whether you have the pipeline required to achieve future targets 
  • Any hiccups or bottlenecks in the current sales process that require additional attention or adjustments

What can the shape of your funnel tell you? Here are five types of pipelines and the guidance needed to manage your pipeline effectively.

Ping Pong Pipeline

The Ping Pong Pipeline is identified by two distinct characteristics: 1) Opportunities bounce from stage to stage – progressing and regressing frequently and 2) an overall lack of velocity or speed to close.

Short and long-term bookings forecasts sound like wishes and Hail Marys. Even late-stage opportunities cannot be accurately forecast since many revert to earlier stages.

Corrective Action:

To avoid this fate, sales leadership needs to drill their sales team on opportunity management. They should inspect opportunities for stage definitions, exit criteria and significant interactions. Pipeline reviews should become coaching sessions on how to progress prospects through the funnel efficiently.

Teardrop Pipeline

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