Table of Contents
- Pipeline Definition & Meaning
- What Is a Pipeline?
- 5 Types of Pipeline
- Pipeline Uses, Purpose, and Importance
- What’s in a Pipeline? Parts?
- How to Design a Pipeline
- Pipeline vs. Forecast
- What’s the Difference Between a Pipeline, a Workflow Chart, and a Platform?
- Pipeline Sizes
- Pipeline Ideas and Examples
- Pipeline FAQs
Pipeline
A pipeline in business is an effective strategy for monitoring progress and development. Whether it is closing a sales deal or pursuing a potential investor, a pipeline is a tool used to organize and transform important data.
Pipeline Definition & Meaning
A pipeline is a business tool that seeks to establish and monitor businesses opportunities through lead generation and tracking.
The pipeline method is able to identify the revenue generating opportunities through a detailed series of steps or stages.
What Is a Pipeline?
In a business sense, a pipeline is basically a visual representation or infographic that analyzes each potential opportunity. From customer relationship management to product development to investor relations, the pipeline strategy can be applied to most areas of business. But perhaps most of all, pipelines are designed to boost and enhance sales strategies by focusing and acting on promising leads.
5 Types of Pipeline
IT Sales Pipeline
A pipeline is a business tool used to monitor sales leads and opportunities. The method is primarily used for B2B sales but it can apply to marketing and other business fields. The content in the chart or table will vary depending on the company’s needs; the IT sales pipeline, for example, is divided into three sections: Information, Economics, and Pipeline Data.
Funnel Pipeline
A sales funnel pipeline is a strategic method used to monitor potential leads with the aim of closing a deal or gaining a new customer. Pipelines are typically linear because they show a representation of the different stages. The editable template below can be used for different objectives such as CRM (customer relationship management) and project management.
Marketing Pipeline
Sales and marketing are two closely related fields and concepts. And just like a sales pipeline, a marketing pipeline can be used to study and track lead generation. In many ways, it is an infographic that organizes a series of steps to identify which leads are worth pursuing.
Leadership Pipeline
The pipeline strategy is not only applicable to sales and project management. The method can even be used in human resources, recruitment, and employee development. For instance, the leadership pipeline template below can be used to identify potential managers and supervisors who- with more training and nurturing- can thrive as excellent leaders.
Project Pipeline
Pipelines are effective monitoring tools in the field of project management. With a detailed pipeline, managers can determine which projects require urgent action or more improvement. Use the editable and downloadable project pipeline below to organize your information better and hit your targets and deadlines.
Pipeline Uses, Purpose, and Importance
A pipeline approach is just one of many business strategy tools to help cultivate a more organized and systematic process. The following reasons describe the main purposes and uses of the pipeline method.
Monitor Team Performance
Using a pipeline can be effective in monitoring a team’s performance and growth. The data in the pipeline can determine how well a team or person can convert a prospective lead into an actual paying customer. This is particularly applicable for sales and project teams whose performance is often characterized by targets and deadlines.
Effective Visual Aid
A pipeline is basically a visual representation with important information that can be used for lead and revenue generation. Instead of just mere text, the pipeline strategy takes it a step further by organizing key data into a table or matrix. The visual aid or infographic can help teams make better sense of business opportunities so they can effectively act on it.
Tool for Organizing Information
There can be a number of ways to make sense of revenue generation strategies. A pipeline takes all the key information then organizes and arranges it in a table for easier progress tracking. Data which includes the point person, source of the lead, probability prediction, and other projections are normally listed down in a pipeline.
Promotes Transparency and Accountability
Since a pipeline is highly detailed as it monitors each prospective lead closely, it can lead to greater transparency. All the important information is laid out and is available for all team members to follow and scrutinize. Team members, who are tasked to fill and update the pipeline, are ultimately held responsible and accountable for all its movements and progress.
Helps Improve Forecasting
Using a pipeline can also greatly improve predictive forecasts on revenue generation. The data in the pipeline enables you to determine if a lead is promising or if it is a dead end, or even if it is still worth pursuing. The key is to document every action or phase and to keep the pipeline up-to-date at all times.
What’s in a Pipeline? Parts?
Company Information
At the top of the page, indicate your company name and business address. Below the company name, you can also include basic contact details such as the landline number and email address.
Logo
Aside from the company name, you can also include the company’s official logo. It can be placed opposite the company name or beside it, depending on your personal preference.
Title
Provide a short and appropriate title for your pipeline document. Whether the title is sales pipeline or recruitment pipeline, it is important to let readers know what to expect in your pipeline analysis.
Opportunities
A key element in a pipeline is the opportunities or leads wherein the goal is to materialize and act on these leads. Make sure to list down each opportunity individually.
Contact Person
For every lead, provide the name of the contact person or point person. You can also take note of their contact details such as their mobile number and email address.
Lead Source
Identify the source where you were able to obtain the lead. In business, there are a lot of ways to source and generate leads.
Finance
This may or may not apply, depending on the specific objective of the pipeline. You can indicate the exact or estimated amount as well as the probability percentage for business projection and forecast reasons.
Action Steps
In a separate column or section, make sure to indicate the applicable action steps. This could be a particular stage, a brief description, or a specific deadline for closing a deal or meeting a target.
How to Design a Pipeline
1. Select a standard pipeline document size
2. Establish the specific objective of your pipeline
3. Choose an appropriate pipeline template that matches your needs
4. Edit the business logo and company information
5. Edit the title and the column headings of the pipeline
6. Input the corresponding values in the rows according to your needs
Pipeline vs. Forecast
A pipeline is a strategic business tool that enables individuals and teams to identify business opportunities for growth by using a systematic tracking of stages or steps.
A forecast, in a business sense, is a tool used by companies to predict and plan for future growth or expansion based on available data and metrics.
What’s the Difference Between a Pipeline, a Workflow Chart, and a Platform?
A pipeline is a method that involves identifying and analyzing business opportunities and leads for the purpose of hitting sales targets or growing a business.
A workflow chart is a diagram that provides a visual representation of the systematic structure of a business process with the aim of explaining how to do a certain job.
A platform is an application, software, or hardware that allows services and products to run and operate; it could mean an application (e.g., Microsoft Excel) or a social media platform (e.g., Facebook).
Pipeline Sizes
There is a right size to print pipeline tables and charts since they are considered formal and professional documents. When crafting your table or infographic, it is important to keep in mind the following pipeline size options.
Pipeline Ideas and Examples
As mentioned in previous sections, the pipeline approach can be applied in different area of business. If you want to create your own infographic or visual representation, there are tons of customizable pipeline ideas and templates to use as reference.
- Business Pipeline Ideas and Examples
- Bid Pipeline Ideas and Examples
- Recruitment Pipeline Ideas and Examples
- Sales Pipeline Funnel Ideas and Examples
- Sales Pipeline Analysis Ideas and Examples
Pipeline FAQs
What should be included in a pipeline?
A table or matrix that identifies the business opportunities, contact person, lead source, total amount, probability percentage, phase, and the closing date should be included in a basic pipeline.
What is a pipeline analysis?
A sales pipeline analysis is the process of assessing potential leads or business opportunities as well as identifying areas of improvement in order to adjust one’s strategies accordingly.
What makes a good data pipeline?
A good date pipeline is sustainable, scalable, easy to use, and it offers a visual analysis of your data.
What is a project pipeline?
In project management, a project pipeline is a tool or software used to track and monitor the progress of all current projects in one place.
How can we improve a pipeline?
In order to improve the efficacy and sustainability of a pipeline, it is important to clarify the sales process, establish scalable metrics, build a library of resources, and focus on promising leads.
Why is building your pipeline important?
Building a pipeline, specifically a sales pipeline, promotes lead qualification and helps to ensure that you and your team are on the right track as far as business growth is concerned.
Is a pipeline a workflow?
Not necessarily, since a pipeline involves more of a linear series of processes whereas a workflow may be non-linear and non-concurrent.
What is a pipeline process?
In business terms, a pipeline process identifies different revenue generating opportunities and charts each lead or opportunity’s progress in stages or steps.
What does a product pipeline mean?
A product pipeline involves a set of products, goods, or services that are organized into different stages of production such as development, preparation, transportation, and delivery.
What is a pipeline strategy?
A pipeline strategy is a method or plan that maps out the various stages of leads, opportunities, or product development for the purpose of hitting business targets and objectives.
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