Why Are Regular Pipeline Reviews Important?
Struggling with missed sales targets and stagnant deals? Pipeline reviews can help as they enable sales reps and managers to identify and overcome obstacles in the sales pipeline.
“Sorry, boss, I don’t think they’ll sign this week. This opportunity will slip to next month.”
And so it did—more than once, along with several other opportunities.
Missed sales targets and hit-and-miss sales forecasts are starting to build pressure. The team is feeling it, and so are you. As management’s expectations intensify, you’re left grappling with the same lingering questions: What’s happening with those "sure deals"? Why is your sales team's pipeline clogged with opportunities that won’t close?
It’s frustrating to be in the dark with no clear way to regain control.
There’s a solution: regular pipeline reviews. By conducting structured pipeline reviews with each sales rep, sales managers gain more than just an update on open opportunities; they gain control and spur action. These reviews form a clear picture of your team's sales pipelines: their past, present, and future.
What is a Pipeline Review?
A pipeline review is a structured meeting between a sales rep and their manager to assess the status of open opportunities. The primary focus of these reviews is identifying obstacles preventing deals from successfully closing and deciding actions the rep or manager can take to overcome them.
Pipeline reviews are essential for evaluating the health of open opportunities, ensuring sales targets are reached, and, when needed, refocusing efforts or pushing for more activities.
These reviews cover topics such as the status (including planned/agreed next steps) of the most significant opportunities, whether there is enough (new) pipeline to reach designated targets, and which deals have not moved forward since the last review (and corrective action).
Why Are Pipeline Reviews Important?
As said, the most crucial outcome for pipeline reviews is identifying and overcoming blocks that prevent opportunities from being closed and won.
For sellers, pipeline reviews offer valuable support and feedback. Stalled opportunities should be reviewed so revitalising action can be agreed upon. If any dead opportunities exist, they should be lost, and energy should be directed to live ones. Planned actions for the most significant opportunities can be evaluated, and potential deal breakers can be identified and mitigated. A pipeline review should be a discussion from which the sales rep leaves motivated and with a clear action plan. A great pipeline review leads to winning opportunities in no time!
A great pipeline review leads to winning opportunities in no time!
For sales management, regular pipeline reviews provide a better understanding of the health of their pipeline and the likelihood of reaching the team's revenue goals. Pipeline reviews are crucial for sales forecasting as they add context compared to a numbers-only approach or checking just randomly individual deals. In addition, having these conversations contributes to an improved understanding of the market and the team’s skill levels, plus aids in spotting any emerging challenges or risks.
When to Have Pipeline Reviews?
The ideal cadence for pipeline reviews can vary—some teams benefit from monthly reviews, while others may need them quarterly. This concerns personal preferences, team experience levels and the company's sales cycle. Finding a good cadence might require some trial and error. In any case, regular pipeline reviews are considerably more effective than one-offs.
Making repeatable pipeline reviews a core part of your sales management will move your team closer to its goals. By systematically reviewing pipelines, you’ll maintain visibility into your team's performance, enable more accurate forecasting, and take proactive steps to drive revenue growth.
When you hold pipeline reviews regularly, three things will happen. Firstly, your team learns to prepare better for each pipeline review. As a result of coming in more prepared, they will benefit more from the review. Secondly, you will notice you go deeper into opportunities as the routine improves. Again, repetition leads to better outcomes, serving you all better. Last but not least, your team should always have their pipeline and related activities up to date when coming into pipeline review. So, as an additional bonus, pipeline reviews help improve CRM data quality. Everybody loves good data quality, don't they?
When to start? Whenever you are reading this, the answer is "now".
At the time of writing, we are at an especially great time to start, as the dreaded Q4 is approaching. With Q4 comes the added pressure of closing deals, but we also need to start planning for next year. Conducting a pipeline review helps you when planning for next year's sales.
Ilkka - Club President
Check out our guide for having pipeline reviews that move your team towards sales targets by increasing sales activities and improving opportunity quality.
