Your sales pipeline is the engine of your revenue machine. A well-designed pipeline gives you visibility into future revenue, helps you identify bottlenecks, and enables accurate forecasting. A poorly designed one creates confusion, missed opportunities, and inaccurate projections.
The difference between high-performing sales teams and struggling ones often comes down to pipeline design and discipline.
What Makes a Great Sales Pipeline
Before diving into specific stages, understand the principles of effective pipeline design.
Clarity at Every Stage
Every person on your team should be able to answer: “What stage is this deal in and why?” Stages should be binary. A deal is either in a stage or it is not. No gray areas.
Buyer-Centric Design
Your pipeline should mirror your buyer’s journey, not your internal processes. Stages should reflect meaningful milestones from the customer’s perspective.
Measurable Exit Criteria
Each stage needs clear exit criteria. What must be true for a deal to move forward? Without defined criteria, deals get stuck or pushed forward prematurely.
Appropriate Granularity
Too few stages and you lose visibility. Too many stages and the pipeline becomes unmanageable. Most B2B sales cycles work well with 5-7 stages.
The Universal B2B Pipeline Framework
While every business has unique elements, this framework provides a proven starting point for most B2B sales organizations.
Stage 1: Lead (0% Probability)
Definition: An unqualified contact who might fit your ideal customer profile.
Entry criteria:
- Contact information captured
- Some indication of potential fit (industry, company size, role)
Exit criteria:
- Initial qualification call scheduled or completed
- Basic fit confirmed or disqualified
Owner: Marketing or SDR team
Key activities:
- Outreach sequences
- Lead enrichment
- Initial qualification
Stage 2: Qualified Lead (10% Probability)
Definition: A contact confirmed to fit your ICP with identified potential interest.
Entry criteria:
- Fit qualification completed (BANT, MEDDIC, or your framework)
- Decision-making involvement confirmed
- Potential pain point or opportunity identified
Exit criteria:
- Discovery meeting scheduled and confirmed
- Prospect has committed time to evaluate
Owner: SDR or AE depending on your model
Key activities:
- Deep qualification
- Discovery prep
- Account research
Stage 3: Discovery (20% Probability)
Definition: Active evaluation where you are uncovering needs and building understanding.
Entry criteria:
- Discovery call completed or in progress
- Champion identified
- Pain points articulated by prospect
Exit criteria:
- Complete understanding of requirements
- Evaluation process defined
- Technical fit confirmed
- Economic buyer identified
Owner: Account Executive
Key activities:
- Discovery calls
- Technical discussions
- Stakeholder mapping
- Requirements gathering
Stage 4: Solution Presented (40% Probability)
Definition: You have presented a tailored solution addressing their specific needs.
Entry criteria:
- Formal presentation or demo completed
- Solution mapped to stated requirements
- Pricing discussed at some level
Exit criteria:
- Prospect confirms solution fits their needs
- Formal evaluation moving forward
- Timeline discussed
Owner: Account Executive
Key activities:
- Customized demos
- Solution presentations
- ROI discussions
- Competitive differentiation
Stage 5: Proposal Sent (60% Probability)
Definition: A formal proposal with pricing has been delivered.
Entry criteria:
- Written proposal sent
- Pricing presented
- Terms outlined
Exit criteria:
- Prospect engaging on proposal terms
- Negotiations if any are progressing
- Final decision timeline confirmed
Owner: Account Executive
Key activities:
- Proposal delivery
- Terms negotiation
- Objection handling
- Stakeholder alignment
Stage 6: Negotiation (80% Probability)
Definition: Active discussion on final terms before commitment.
Entry criteria:
- Verbal intent to proceed
- Negotiation on specific terms
- Legal and procurement engaged
Exit criteria:
- Final terms agreed
- Signature process initiated
Owner: Account Executive with leadership support
Key activities:
- Contract redlines
- Legal review
- Final approvals
- Procurement process
Stage 7: Closed Won (100% Probability)
Definition: Contract signed and deal closed.
Entry criteria:
- Signed contract received
- Payment terms confirmed
- Handoff to customer success initiated
Key activities:
- Contract execution
- Customer handoff
- Implementation kickoff
- Celebration
Closed Lost
Definition: Opportunity is no longer viable.
Required information:
- Loss reason documented
- Competitive intelligence captured
- Future re-engagement timeline if applicable
Customizing for Your Business
This framework needs adaptation for your specific context.
For Transactional Sales (Under 30 Days)
Simplify to fewer stages:
- Lead
- Qualified
- Demo Completed
- Proposal Sent
- Closed
For Enterprise Sales (6+ Months)
Add stages for complex buying processes:
- Security review
- Procurement evaluation
- Pilot or proof of concept
- Budget approval
For Product-Led Growth
Include self-service stages:
- Free trial started
- Product qualified lead
- Sales-assisted evaluation
Stage-Based Metrics That Matter
Each pipeline stage should have associated metrics.
Conversion Rates Between Stages
Track what percentage of deals move from each stage to the next. Healthy benchmarks:
- Lead to Qualified: 20-30%
- Qualified to Discovery: 60-70%
- Discovery to Solution Presented: 50-60%
- Solution to Proposal: 70-80%
- Proposal to Negotiation: 50-60%
- Negotiation to Closed: 80-90%
Low conversion rates indicate stage-specific problems to diagnose.
Stage Duration
How long do deals spend in each stage? Establish targets based on historical data:
- Identify deals stuck beyond normal duration
- Investigate and address blockers
- Adjust forecast probability for stalled deals
Stage Velocity
How quickly are deals moving through each stage? Velocity trends predict future performance.
Coverage Ratios
For each stage, how much pipeline exists relative to quota?
- Early stage: 5-6x coverage
- Mid stage: 3-4x coverage
- Late stage: 1.5-2x coverage
Common Pipeline Design Mistakes
Avoid these pitfalls that derail sales organizations.
Stages Based on Sales Activities Not Buyer Actions
Wrong: “Email sent” or “Follow-up scheduled” Right: “Discovery completed” or “Technical requirements validated”
Buyer-centric stages reflect real progress, not sales busywork.
Missing Clear Exit Criteria
Without exit criteria, reps push deals forward optimistically. Define exactly what must be true to advance.
Too Many Stages
Every stage adds overhead. If two stages always move together, combine them.
Probability Percentages Disconnected from Reality
If your stated probabilities do not match actual close rates, fix them. Accurate probabilities enable accurate forecasting.
No Closed Lost Tracking
Learning from losses requires capturing why deals die. Make loss reasons required and useful.
Pipeline Hygiene Best Practices
A well-designed pipeline means nothing without disciplined execution.
Regular Pipeline Reviews
Weekly pipeline reviews should examine:
- Stuck deals beyond stage duration targets
- Deals missing required information
- Forecast accuracy versus actual results
- Stage conversion trends
Deal Qualification Checkpoints
At each major stage transition, pause to verify qualification:
- Does this deal still meet our ICP?
- Are we engaged with real decision-makers?
- Is the timeline realistic?
- Do we have a path to win?
Aging and Decay Rules
Implement automated rules:
- Flag deals stuck beyond thresholds
- Decay probability for aging opportunities
- Force disposition of stale pipeline
CRM Discipline
Your CRM is only useful if data is accurate:
- Required fields at each stage
- Regular data quality audits
- Integration with other systems for completeness
Connecting Pipeline to Social Selling
For social selling practitioners, pipeline design connects directly to LinkedIn activity.
Early Stage Influence
Social engagement influences early pipeline stages:
- Content interactions identify potential leads
- Relationship building warms up cold outreach
- Thought leadership accelerates qualification
Mid-Stage Reinforcement
During evaluation, social selling supports the process:
- Sharing relevant content with stakeholders
- Engaging with champion’s posts to stay visible
- Building relationships with economic buyers
Late-Stage Confidence Building
As deals approach close, continued engagement reduces risk:
- Demonstrating ongoing commitment
- Providing social proof through content
- Maintaining relationships through any delays
Implementation Roadmap
If you are redesigning your pipeline, follow this sequence.
Week 1: Document your current state. What are your actual stages? What does reality look like?
Week 2: Interview your top performers. How do they think about deal progression?
Week 3: Define new stages with clear entry and exit criteria.
Week 4: Update your CRM configuration. Add required fields and validation.
Week 5: Train the team. Explain the “why” behind changes.
Week 6: Run parallel tracking. Compare old and new for baseline.
Ongoing: Iterate based on data. Refine stages as you learn.
The Pipeline as Strategy
Your pipeline is not just a tracking mechanism. It encodes your sales strategy.
The stages you choose reflect your theory of how deals progress. The metrics you track reveal what you believe matters. The hygiene you enforce demonstrates your commitment to excellence.
Design your pipeline intentionally. Maintain it rigorously. Iterate based on data. The result will be a sales engine that produces predictable, scalable revenue growth.