Sign up for the beta list
Thank you, we have received your contact details!
Please check your inbox to verify your email address.
Oops! Something went wrong while submitting the message.
Risks in the sales pipeline - How do to minimize them.

October 12, 2022

Sales Strategy

Risks in the sales pipeline - How do to minimize them.

There are always risks in the sales pipeline, but there are ways to minimize them. Here's what you need to know to protect your business.

Sales Pipeline, Risk Management, Risk Level, Risk

An ideal sales process is one in which sales team members understand and correctly perform the suitable activities with the most profitable customers and prospects, at the correct times, in the right frequencies and volumes, to produce predictable results. Their sales activities generate a steady stream of sales leads. There are conversion rates and a yield at the end of the sales process as deals move from one pipeline stage to the next in the sales process. The relationships between these flows, cycle times, conversion rates, and results are not being fixed.

Building a sales pipeline is essential, but the sales and revenue teams regularly need to analyse the pipeline's health. This analysis allows the teams to keep the pipeline healthy, look for risk, take the required steps to minimise risk, and avoid future risks.

Why identify and reduce risk?

When a sales team's sales process has been defined and documented, sales managers must monitor opportunity flows, cycle times, conversion rates, and yields for opportunities to improve and detect negative changes early.

There are numerous advantages to minimising risk in the pipeline. Focusing on pipeline weaknesses to improve them can:

  • Assist the sales team in improving their initial prospecting efforts and concentrating on the most promising opportunities likely to close.
  • Ensure that at-risk deals are identified and addressed early in the sales process to provide sales reps and managers with more long-term pipeline visibility.
  • Give a more accurate sales forecast.
  • Make opportunities for rep coaching available.

Companies that do not reduce risk in their sales pipelines will experience inaccurate forecasts, a lack of pipeline visibility, and an overall no healthy pipeline that produces an unreliable revenue stream.

The businesses will be unable to grow or plan for the future in the best-case scenario. In the worst-case scenario, hence not being able to survive.

What are the Signs that your Pipeline is At risk, and how to prevent them?

B2B sales are becoming increasingly competitive; the landscape has dramatically changed in recent years. With new entry points and more ways to connect with a prospect, sales teams are being pushed to accomplish more with greater efficiency.

  1. There is no activity: The absence of any action on an opportunity is one of the most telling signs. Identifying the reason for the lack of engagement or activity can be time-consuming for the sales rep assigned to the prospect. There could be some reasons for the lack of activity. One possibility is that reps have not updated the CRM with the action that has occurred, which is easily remedied by incorporating tracking systems. However, this can be a significant problem if reps have not followed up. Your team should follow up on every lead; if they don't, it can lead to fewer closes and you missing quota.
  2. There are no upcoming tasks: Keeping the pipeline moving requires sales reps to make new connections and prospects constantly. If no future activities or meetings are scheduled, this is a sign of stalling, putting your pipeline at risk. Simple activity automation tools can assist in identifying gaps in future task planning. This helps understand where the reps should focus and if they need redirecting to specific tasks on accounts that are at risk by tracking when activities are made and if there are accounts that are missing new tasks.
  3. Low Participation: Gartner estimates that 76% of all sales emails are not read. One of your crucial pipeline metrics for understanding the health of your pipeline is prospect engagement, identifying which accounts are progressing and which are not by tracking activities between the sales reps and prospective customers. The greater the number of engagement points between the two parties, the more it reveals which customers actively engage with the reps and which are not. The location of the lack of engagement will determine where your issues are and whether it is worth the resources to re-engage.
  4. There aren't enough relationships: Relationships are well-known in B2B sales; if you don't have enough connections to a target account, you're unlikely to connect with the right people who make the decisions. You can see where you have links to target accounts by mapping your internal network of contacts. You can also find out which reps have those connections and whether they can be used to increase the win rate of your opportunity.
  5. Pipeline Stages are too long: The time an opportunity has remained in your sales pipeline is a major red flag. You can quickly identify deals that are stuck in the funnel by looking at the number of days it has been in that stage. This knowledge allows you to devise a strategy for moving forward or, if necessary, cut your losses and reallocate resources. As sales cycles lengthen, it is more important to recognise when an opportunity has stalled and take corrective action. Determine why a deal is stuck in a stage for so long—determining why is the answer to moving that deal forward and reveals weaknesses in your sales team. Ideally, your customer's journey through your pipeline should be simple and easy to complete; you want to identify and reduce roadblocks quickly to reduce risk.
  6. Reduced Deal Value: Your value must rise for your pipeline to grow, which means your average deal value/size must increase. If your deal values are declining, your pipeline growth will slow and may become unprofitable. A deal's value can change for various internal and external reasons, such as pricing or reactions to competitive environments. However, a downward trend can throw your forecast off track, causing ripple effects throughout the business. You can detect when this occurs by using trending data.
  7. The Closing Date being Postponed: When forecasting quota, having a deal move out of the current quarter can be a real problem for many sales leaders. Furthermore, if many deals fall through, you may not meet your quota, forcing you to scramble to push deals up or find new ones to ensure you meet your quota. Understanding why a deal has been delayed allows you to start incorporating factors into your forecasting that will balance these out.
  8. The stage has been repositioned: Similarly to pushing out a close date, moving a deal back, a stage can significantly impact your pipeline. There could be several reasons for a deal to be pushed back a stage: a rep may have been overly confident, problems with the customer may have arisen, or engagement issues. You can help them get back on track by identifying and resolving these issues or coaching the rep on when deals should be moved forward.

Add-on

When you look at Dealcode, the Risk Level of a deal is a crucial figure in this AI Guided Selling Software. It indicates the degree to which the closing of a deal is at risk. The higher the risk level, the lower the probability of closing. Along with other factors, the risk level is an essential criterion for determining whether a deal should be ignored or closed as soon as possible before it is lost. Dealcode uses AI to let you know the deals at risk in your pipeline, reducing the time-consuming task of the sales rep monitoring these deals.

Related SalesLeaks

Risiken in der Vertriebspipeline - Wie kann man sie minimieren?

Risiken in der Vertriebspipeline - Wie kann man sie minimieren?

In der Vertriebspipeline gibt es immer Risiken, aber es gibt Möglichkeiten, diese zu minimieren. Hier erfahren Sie, was Sie wissen müssen, um Ihr Unternehmen zu schützen.

October 12, 2022
Sales Forecasting- kurz & knapp

Sales Forecasting- kurz & knapp

Wenn Sie im Vertrieb tätig sind, dann wissen Sie, dass Prognosen für den Erfolg unerlässlich sind. Aber wie lassen sich Umsatzprognosen am besten durchführen? Hier ist ein schneller und einfacher Überblick, der Ihnen den Weg weist.

October 4, 2022
Unser Sales Coffee mit Janine im Recap

Unser Sales Coffee mit Janine im Recap

Am 07.09.2022 trafen sich die Dealcode Founder mit Janine Will zum Sales Coffee. Thema des Live-Talks: Sales Tech. In diesem Beitrag haben wir ein paar Fragen und Antworten zusammengefasst.

September 20, 2022
Sales Forecasting- in a Nutshell

Sales Forecasting- in a Nutshell

If you're in sales, then you know that forecasting is essential to success. But what's the best way to forecast sales? Here's a quick and easy guide to get you started.

October 4, 2022
Our Sales Coffee with Janine - the Recap

Our Sales Coffee with Janine - the Recap

Am 07.09.2022 trafen sich die Dealcode Founder mit Janine Will zum Sales Coffee. Thema des Live-Talks: Sales Tech. In diesem Beitrag haben wir ein paar Fragen und Antworten zusammengefasst.

September 20, 2022
The future of sales - Redefining sales.

The future of sales - Redefining sales.

In a rapidly changing world, it is more important than ever to stay ahead of the curve. However, many businesses are still relying on traditional sales methods. We believe that the future of sales lies in digital channels and customer-centricity.

August 23, 2022

#WeHackSales

Stay updated and Make your B2B Sales Data-driven

We will help you grow with great content.