Sales Pipeline Report: Steps, Advantages, and Best Practices

With an understanding of the sales flow, it is possible to be successful in the modern business world. The sales pipeline reports are undoubtedly one of the most crucial aspects of the sales process, if not the most crucial.

Your understanding of everything in the pipeline immediately impacts future strategies, choices, and the amount of money your business will make.

However, comprehending a sales funnel entails more than merely poring over a small amount of data and looking for correlations among the KPIs. With these pipeline reports, it would be an easier task and there’s no worry about missing important data.

A sales pipeline report is a potent and essential tool for understanding how a company sells and is particularly helpful in understanding complex sales processes.

With a sales pipeline report, you can see where your sales are getting stuck and take steps to improve your pipeline efficiency. In addition, they can produce an easy-to-read visualization of data within the salesforce.

So, whether you are looking for a way to improve the sales funnel or want to see how your sales pipeline is holding up, ChartExpo can help. In this blog post, we’ll look at how you can analyze your sales pipeline and identify areas of improvement.  And you will learn how to create this helpful graphic using ChartExpo.

Table of Content:

1. What is a Sales Pipeline Report?
2. Understanding Sales Pipeline Analysis
3. Video Tutorial: How to Create a Sales Pipeline Report
4. Why Do We Need Sales Pipeline Reports?
5. What is Included in a Sales Pipeline Report?
6. Sales Pipeline Reporting Examples
   • Lead Conversion Rate Report
   • Sales Funnel Visualization
   • Time in Stage Report
   • Closed Deals Report
   • Forecasting Report
   • Sales Activities Report
   • Pipeline Health Report
7. Sales Pipelines Stages
8. How to Create a Sales Pipeline Report?
9. Advantages of a Sales Pipeline Report
10. Sales Pipeline Reporting: Best Practices
11. FAQs About Sales Pipeline Report
12. Wrap Up

What is a Sales Pipeline Report?

Definition: A sales pipeline report is a graphical representation of the sales process that shows how leads progress through the various stages of your sales funnel. By tracking this data, you can identify bottlenecks in your sales process and make changes to improve conversions.

However, people confuse a sales pipeline report with the sales process. A sales process and a sales pipeline are fundamentally different. Why? Because a sales process classifies each step as a separate pipeline stage.

So, a sales pipeline report lets you track all the significant metrics produced at various pipeline phases.

A sales pipeline report typically contains three key metrics:

• Leads: The number of leads at each sale funnel stage.
• Conversion rate: The percentage of leads that convert to customers.
• Average deal size: The average value of deals won.

The Sales Pipeline Report will look as follows:

Understanding Sales Pipeline Analysis

Sales pipeline analysis involves examining each stage of the sales process to gain insights into lead progression, conversion rates, and potential revenue.

By identifying where prospects drop off or get delayed, businesses can pinpoint areas for improvement, forecast sales more accurately, and optimize strategies to increase efficiency and close more deals.

This analysis ultimately enables better decision-making and boosts overall sales performance.

Video Tutorial: How to Create a Sales Pipeline Report

Why Do We Need Sales Pipeline Reports?

A sales pipeline report is one of the essential tools a sales manager has at their disposal. It allows them to see the current status of all their sales opportunities, what stage each deal is in, and how likely it is to close.

This information is critical for forecasting future sales and ensuring the sales team is on track to hit their targets.

Gives A Simple Outline of the Sales Process

One of the critical advantages of using a sales pipeline report is that it can help you identify any potential bottlenecks in your sales process.

The sales pipeline report helps you understand how many deals are being worked on, what stage they are at, and who is working on them. You can get a sales process overview and monitor your team’s progress.

For example, if you notice that many are getting stuck in the middle of the pipeline, you can investigate what is causing this and take steps to address it.

Monitor Progress

A sales pipeline report can give you an early warning sign if a deal is at risk of falling through. For example, if you see that a deal has been sitting in the same pipeline stage for several weeks, this could indicate some issues with it. By keeping an eye on your sales pipeline report, you can flag these deals so that you can take action to save them.

You can easily track each deal’s status and know if any changes need to be made. You can also check out individual employees’ performance and their contribution to the company’s success.

Reliable Sales Predictions

You can use the metrics you generate in your pipeline report to produce precise sales estimates. The calculation process will be greatly facilitated by seeing how near your team is to meeting the goals and how many prospects are in the sales funnel.

With accurate sales forecasts, you can make informed decisions about where to allocate your resources. You can also plan and set goals for the future.

Boost overall sales volume and income

You can increase your business’s profit margin by boosting total sales volume and revenue. Sales pipeline reports can help you achieve this by providing insights into what needs to be improved and which stages deliver the best results.

Additionally, using the best graph to show profit and loss can help you visualize financial performance, making it easier to identify areas for growth and improvement. Understanding the details of your pipeline stages and financial trends will allow you to make data-driven decisions for success.

Overall, the sales pipeline report is essential for any sales manager. By incorporating effective business research methods and using them regularly, you can stay on top of your team’s performance and ensure that your business hits its targets.

What is Included in a Sales Pipeline Report?

1. Lead Status: Overview of leads at various stages, such as new, contacted, qualified, and converted.
2. Sales Stages: Breakdown of the sales process, including stages like prospecting, qualification, proposal, negotiation, and closing.
3. Conversion Rates: Metrics showing the percentage of leads that move from one stage to the next.
4. Expected Revenue: Estimated income from leads based on their probability of closing and potential deal value.
5. Sales Forecast: Predictions for future sales based on current pipeline data and historical performance.
6. Time in Stage: Average duration leads spend in each stage of the pipeline.
7. Source of Leads: Information on where leads are coming from, such as referrals, marketing campaigns, or social media.
8. Team Performance: Analysis of individual or team contributions to the sales pipeline, highlighting top performers and areas for improvement.

Sales Pipeline Reporting Examples

• Lead Conversion Rate Report

This report tracks the percentage of leads that convert into paying customers. It provides insights into the effectiveness of the sales team and the overall sales process, helping to identify areas for improvement.

• Sales Funnel Visualization

A sales funnel report shows a graphical representation of the different stages of the sales pipeline (e.g., awareness, interest, decision, action). This helps in understanding where potential leads drop off and highlights areas needing attention.

• Time in Stage Report

This report measures the average time that leads spend in each stage of the sales pipeline. It is essential for identifying bottlenecks in the process and improving the flow of leads through each stage.

• Closed Deals Report

The closed deals report summarizes deals that have been successfully closed within a specific period. It includes metrics such as total revenue, average deal size, and win rate, providing insight into performance and revenue generation.

• Forecasting Report

A forecasting report uses current pipeline data to project expected sales, including the probabilities of closing each deal. This report supports strategic planning and resource allocation based on upcoming revenue predictions.

• Sales Activities Report

This report details the sales activities performed, including calls made, meetings scheduled, and follow-ups conducted by the sales team. It provides insights into team productivity and engagement levels, essential for evaluating performance.

• Pipeline Health Report

The pipeline health report provides an overview of the overall health of the pipeline, covering metrics like total pipeline value, number of deals, and the age of deals. It highlights areas where deals may be stalling and helps ensure a balanced pipeline.

Sales Pipelines Stages

1. Prospecting: Identifying potential leads through research, networking, or marketing efforts.
2. Qualification: Assessing if leads fit the target criteria and have the potential to become customers.
3. Contact: Initiating communication with qualified leads to understand their needs and pain points.
4. Nurturing: Building relationships by sharing relevant information, insights, or demos to engage leads.
5. Proposal: Present a tailored solution or offer, often with pricing and terms for consideration.
6. Negotiation: Addressing objections, answering questions, and finalizing the deal details.
7. Closing: Securing commitment and completing the sale through a contract or purchase.
8. Post-Sale: Providing support, onboarding, or follow-ups to ensure customer satisfaction and retention.

How to Create a Sales Pipeline Report?

You may quickly install ChartExpo, a chart builder, as an add-in in Excel. You may install the ChartExpo add-in by following the instructions.

To create a sales pipeline report by using ChartExpo, follow the steps below:

1. First, install the ChartExpo add-in in Excel.
2. Open Excel and go to the Add-Ins tab. Select “ChartExpo” from the My Apps drop-down menu. Click the Insert button.
3. Select the Chart from the list of charts
4. A new window will open where you can select the data for your chart. Choose the cells that contain your data, then click “Create Chart From Selection”.
5. Your chart will now be generated! You can customize it further by clicking the Edit Chart button on the ChartExpo menu

This will be done as follows:

• Click the Insert button to initiate the ChartExpo engine.

• You can now choose from the Chart list as shown below:

• Now that you have your data in an Excel sheet, you can choose it by clicking the “Create Chart From Selection” button as seen below:

• When you click on this button, the chart appears. If you wish to edit the chart, click the Edit Chart button as shown below:

• As demonstrated below, we first disconnect the flow of any unnecessary nodes, such as “Not Clicked”.
• Click on the Settings button then go to Drawing Mode.
• Enable Missing Data and click on the Apply button to save the changes.

• Then, we add the header text to the chart’s top by clicking on Edit Chart.

• Click on the pencil icon next to “Chart Header” then go to Text, write the heading, and enable the show option. Then click on Apply.

• After updating all of the nodes’ colors, click the Save Changes button as shown in the example:

• The final representation of the sales pipeline report is as follows:

Insights

• The number of people who came from Online Ads Lead 1.30k and Call Lead 1.85k.
• Then in the next stage, 1.22k people clicked and 80 people didn’t click.
• From 1.85k Call Leads, 1.75k prospects received calls.
• About 834 prospects are buying customers, and 247 are left in the cart.
• 735 prospects bought products from the online store and 548 prospects purchased by visiting the store.

Advantages of a Sales Pipeline Report

1. Improved Forecasting: Sales pipeline reports provide a clear overview of potential revenue, enabling businesses to make accurate sales forecasts and set achievable targets.
2. Enhanced Visibility: They offer a structured view of deals at each stage, allowing teams to track progress and quickly identify bottlenecks in the sales process.
3. Increased Efficiency: Sales pipeline reports help optimize processes and reduce the overall sales cycle time by pinpointing slow-moving deals and areas for improvement.
4. Higher Conversion Rates: Tracking leads through the pipeline allows teams to address issues proactively, increasing the likelihood of successful conversions and boosting revenue.
5. Enhanced Team Accountability: These reports promote accountability by showing individual and team performance, ensuring everyone remains aligned on goals and focused on priority deals.

Sales Pipeline Reporting: Best Practices

1. Define Clear Stages: Establish well-defined stages in your sales pipeline that reflect your sales process. This clarity helps sales teams understand where each lead stands and what actions are necessary.
2. Regularly Update Data: Ensure that your sales pipeline data is consistently updated. Frequent reviews of the pipeline help maintain accuracy and provide the most current insights for decision-making.
3. Utilize Visual Tools: Visualize pipeline data using charts, graphs, and dashboards. Visual representations make it easier to interpret data quickly and identify trends or bottlenecks.
4. Analyze Metrics: Focus on key performance indicators (KPIs) such as conversion rates, average deal size, and time spent in each stage. Analyzing these metrics helps identify areas for improvement and optimize the sales process.
5. Foster Collaboration: Encourage communication and collaboration among sales team members. Regular meetings to discuss pipeline status and challenges can lead to better strategies and shared insights.

FAQs About Sales Pipeline Report

How Do You Manage Sales Pipeline?

A sales pipeline is the process that salespeople use to move potential customers from initial contact to close. The sales pipeline typically consists of several stages: prospecting, qualification, needs analysis, proposal/price quote, negotiation, and closing.

To manage the sales pipeline effectively, salespeople need to clearly understand the stages involved and the criteria for moving a potential customer from one stage to the next. They also must regularly track their progress and keep accurate records of their interactions with potential customers.

There are several different ways to manage the sales pipeline. Still, some common methods include customer relationship management (CRM) software or a simple spreadsheet add-in like ChartExpo. Regardless of the method used, it is important to review the sales pipeline regularly and make adjustments as needed.

What is the Difference Between Funnel and Pipeline?

A funnel is a process that takes in a wide range of potential customers or leads and narrows them down to those who are most likely to make a purchase. So, a funnel gauges conversion rates throughout the sales process, while a pipeline depicts what a seller does when making a transaction.

Wrap Up

Sales analysis using a pipeline report is important because it helps you identify the reasons behind your company’s success or failure. It also helps you plan future strategies and improve your marketing campaigns.

The report visualizes the representation of flow between two or more entities. It is commonly used to represent the flow of goods, services, information, or finances. It is a powerful tool for analyzing sales pipelines and understanding where your best opportunities lie are.

By mapping out your sales flow, you can quickly identify bottlenecks and areas of improvement. A sales pipeline report can be an invaluable resource if you’re looking to streamline your sales process and close more deals.

However, effective charts or graphs require competent chart makers. Therefore one of the greatest Excel tools for making charts and obtaining useful data insights is ChartExpo. So, what are you waiting for? Let’s get started with ChartExpo now!