Sales Pipeline vs Sales Funnel (Key Differences & Benefits)

Oct 10

Introduction

Instead of selling a product, you're selling a process. Instead of "sales" as in "get paid to sell," you're selling the process of becoming profitable. Instead of prospects, you'll be selling to customers that have already made a purchase with your company. Instead of following up with prospects, you'll be following up with customers and coaching them through the sales cycle.

Sales Pipeline vs. Sales Funnel-A Systematic Approach

"Sales pipeline" and "sales funnel" are two terms that you may hear often in business. They are often used interchangeably, but there is a difference between them. The sales pipeline is a systematic approach to moving leads, prospects, and customers through your sales process and converting them into paying customers. It’s what takes you from "knowing about someone" to "getting paid by them." This can be viewed as a funnel because it starts with many people at the top of the funnel (the widest part), then narrows down as people move forward in the process until there are only a handful at the bottom (the smallest part).

However, there are key differences between these two terms:

A sales pipeline is a comprehensive, step-by-step process that is designed to move a sale from lead to prospect to repeat customer.

A sales pipeline is a comprehensive, step-by-step process that is designed to move a sale from lead to prospect to repeat customer. It can be very beneficial for companies who are looking for an easy way to organize their sales activities. With the right software, it can help you plan and track each step of the sales process with ease. A sales funnel is essentially the same as a sales pipeline but with one crucial difference: it’s focused on getting a sales funnel is essentially the same as a sales pipeline but with one crucial difference: it's focused on getting people into your funnel rather than keeping them there as they progress through your buying cycle (see diagram).

A sales funnel refers to the buying process that companies lead customers through when purchasing products.

A sales funnel refers to the buying process that companies lead customers through when purchasing products. The concept is often depicted as a triangle, with prospects at the top of the funnel and sales at the bottom, but can be represented in other ways depending on your business model. The most common way to depict it is by starting with a large group of prospects who are narrowed down through a series of steps until the final sale is made.

Stages of the Sales Pipeline Process

A sales pipeline is a process of lead generation and conversion. The pipeline can be defined as the series of stages that a prospect goes through before buying your product, service, or solution. There are several key differences between the sales pipeline and the marketing funnel:

The stages are different.
Stages are not necessarily linear.
It has different goals than a funnel.

The current stage of the pipeline will dictate which sales activities are most needed and provide your team with guidelines on what to do next.

The current stage of the pipeline will dictate which sales activities are most needed and provide your team with guidelines on what to do next. If you want to learn more about how sales pipeline software can help you, check out our blog post on how sales pipeline software can help your team! Knowing where your prospects are in their buying journey will help guide your sales efforts.

The Benefits of Using a Sales Pipeline vs. a Sales Funnel

By now, you’re probably familiar with the sales funnel. It’s one of the most used and discussed business models out there. And it's easy to see why: a sales funnel is a straightforward way to visualize how your prospects progress through your marketing efforts and eventually become paying customers.The idea behind using a sales funnel is that as prospects move through each stage of your marketing process, they become more qualified until they reach the final stage where they are ready to buy your product or service. This can be beneficial, because you know what steps each prospect needs to take before becoming a customer and can focus on those specific types of leads at each stage in order to increase conversions overall.

However, there are some major differences between using a sales pipeline and using a sales funnel: Sales Pipeline Software Can Make All The Difference Between Success and Failure.

If you’re a sales professional, chances are you want to be successful. But what does "success" look like? Do you want to make more money? Do you want to help your company grow? Do you just want to feel good about the work that you do each day? We get it—sales isn’t an easy job. And if the thought of dealing with a mountain of paperwork doesn’t sound appealing to you, then we have some great news: sales pipeline software can help automate much of the routine tasks associated with managing sales teams and their activity. The better your team is at tracking their activities, measuring their success rates, and improving their processes, the easier it will be for everyone involved in sales, from top to bottom, through mid-level executives all the way down to sales reps themselves, to see where improvements need to be made so that everyone can continue working toward those goals in order to better serve customers and achieve success!

Having a clear understanding of how each term differs in meaning can help your business succeed in its endeavors.
Having a clear understanding of how each term differs in meaning can help your business succeed in its endeavors.

The Sales Pipeline Process

The sales pipeline process is a systematic approach that helps sales teams keep track of their prospects and close deals faster by managing their customer relationships through each stage of the buying process. This process involves building a relationship with customers, qualifying them, and moving them through various stages until they become paying customers. Sales reps can use this information to identify potential buyers at different stages of their buying journey, which will help them understand what kind of person they need to be talking with at any given time so they can successfully move them down the pipeline toward making a purchase decision (or not).

Conclusion

The sales pipeline vs. the sales funnel is a topic that has been discussed by marketers, businesses, and entrepreneurs for decades. In the past few years, however, there has been an increased focus on how to best use these tools in a way that is not only beneficial to your company but also provides a positive experience for potential customers. It’s important to understand what makes each tool unique so you can choose which one suits your needs best.

Connor Cross