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A sales pipeline is an organized, visual way of tracking multiple potential buyers as they progress through different stages in the purchasing process.

Often, pipelines are visualized as a horizontal bar, sometimes as a funnel, divided into the stages of a company’s sales process. Potential buyers are moved from one stage to the next as they move through the sales process: when contact is made, for example, or when a prospect is qualified.

It’s a way of illustrating where prospects are in their journey from lead to (hopefully) customer; with a pipeline, salespeople are able to see exactly where their money, deals and other sales efforts are at all times. It’s a vital tool for salespeople, who are often juggling many sales prospects and deals, and can’t afford to have one slip through the cracks.

It’s also an important tool for sales managers who want more data on how well their sales process is working; because a pipeline tracks a salesperson’s activities, it offers more visibility into which sales activities are giving a company the greatest return.

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