Sales process stages divide the path from first contact to signature into segments that can be tracked and measured. Typically these are approach, qualification, needs assessment, proposal submission, negotiation and closing. It is essential that the move to the next stage is determined by the customer's action, not the salesperson's feeling – for example an agreed meeting date, the provision of documents or budget confirmation. Without this discipline, the pipeline fills up with deals that go nowhere, and the forecast loses its value. Defined stages also make it possible to identify where the company is losing the most opportunities and to focus improvement there. For smaller companies, four to five stages are enough; finer breakdowns only bring administration without better decision-making. All salespeople in the company should use the same stages, otherwise the figures from their pipelines cannot be compared or added together.
See also: Sales pipeline hygiene, Reasons for Losing a Deal, Lead qualification.
