Want to learn how to increase pipeline velocity? These are the four steps you need to be familiar with.

1. EngageSelling.com
4 Steps to Increasing
Pipeline Velocity
Colleen Francis
EngageSelling.com

2. 4 Steps to Increasing Pipeline Velocity
When we talk about having a healthy pipeline velocity, we're describing a capacity for
generating high quality and high quantity leads: getting them to flow through your business
efficiently.
Getting it right means having a system. And from that, it means that you are adopting a set
of interdependent parts to form a greater whole. The team you build to make that happen
lends itself to a process for managing leads from the qualification to the closing stage.
Do this right and you have a steady flow that grows at the same rate that your company
does.
The kind of acceleration I am talking about here is not a one-time event. It's repeatable
and scalable. It has to be. Otherwise you risk becoming a one-hit wonder. A well planned,
carefully achieved pipeline velocity, on the other hand, keeps your business growing with
the right kinds of prospects, new projects, and new customers.
© Engage Selling Solutions Inc. 2

3. Step #1: Make a Commitment
I like what Peter Drucker once said about this:
"Unless commitment is made, there are only
promises and hopes...but no plans." By committing
to achieving positive pipeline velocity, you are
saying yes to a plan for your business that is both
simple and scalable, that reflects the buying
process of your organization and that is measurable
with achievable targets. Of course, none of that can
happen unless you decide early on to stick to your
plan.
Like most commitments made in life, this is one
where you need something that holds your feet to
the fire to ensure you follow through. That is why
recommend to my clients that they implement a
data-driven tool that tracks the entire process—use
the CRM or ERP of your choice.
© Engage Selling Solutions Inc. 3

4. Step #1: Make a Commitment
Just as important, you need to ensure all members
of your sales team use this tool regularly. As your
data within the tool builds to chart your progress,
you will have an in-depth assessment of how well
you are doing, and how well you will be going to do
in the future. By choosing the right tool and being
consistent in your use of it to analyze data, you gain
a clear picture of the future state of your business
as well as a leading indication of where you are
headed in the future.
© Engage Selling Solutions Inc. 4

5. Step #2: Define the Quantity You Need
Like any good process, your pipeline velocity hinges
on having a clear definition of inputs. When it
comes to quantity of leads and prospects needed to
fill your pipeline, what you need to figure out is
how many do you require to consistently hit your
growth goals.
Fortunately there's an easy, three-step formula you
can use to solve this: 1) Required revenue divided
by your average sale = number of new customers. 2)
Now take your number of new customers and
multiply by 3 = opportunities at the proposal stage.
3) One last step. Take your number of new
customers and multiply by 8 = total opportunities
required in the pipeline in all stages.
© Engage Selling Solutions Inc. 5

6. Step #2: Define the Quantity You Need
Here is an example that shows how this formula
works: If you need $1,000,000 in revenue and your
average sale is $50,000, you will need 20 sales to hit
your goal. This means you will need 60 proposals to
be submitted throughout the year with an average
closing rate of 30% and, you will need a territory
that can produce 160 leads
© Engage Selling Solutions Inc. 6

7. Step #3: Define What the High Quality Lead
Looks Like
Just like quantity, you need to define what your
best customer looks like. The right place to start is
by looking at your existing customer base and
analyze who provides you with a high rate of return
business combined with a satisfying profit margin.
Just as important—but difficult to pinpoint with
data—which customers are fun to work with:
delivering an enjoyable experience while you
deliver a great product or service. All these factors
should come into play as you define these high
quality leads.
© Engage Selling Solutions Inc. 7

8. Step #3: Define What the High Quality Lead
Looks Like
Engage Selling client Doreen Ashton Wagner of
Greenfield Services calls this exercise “defining your
perfect customer.” She and her team created what
they call a “perfect customer questionnaire” that
must be completed by their sellers. It includes
information about the prospect size, location,
buying personalities as well as information about
past buying behavior. In short, it’s a qualification
checklist. And it keeps the team focused on selling
only to the best (or perfect) prospects. The process
works so well, I wrote about it in my book, Nonstop
Sales Boom.
© Engage Selling Solutions Inc. 8

9. Step #4: Know Your Outcomes
There are only three outcomes possible during the
prospect qualification process: the prospect is
qualified fully and can move into the pipeline; the
prospect needs work to qualify; or the prospect is
not worth keeping around at all.
Let’s just address the first group here. What
happens next to those qualified prospects?
There’s no profit in having qualified leads enter the
pipeline and sit there stagnant. Velocity is all about
movement. Once in the pipeline, you will need a
way to measure the movement of the prospects
from the beginning of the sales cycle to the end.
This could be a simple process of three steps or a
complex multistep process that includes team
selling, stage gates and internal conversations.
© Engage Selling Solutions Inc. 9

10. Step #4: Know Your Outcomes
Your decision will be based on the complexity of
your offering. Regardless, you must measure
progress in the pipeline weekly to understand if you
have positive velocity. This includes monitoring
whether quality leads are flowing into the top of
the pipeline at a consistent rate based on the
requirements as set out in Step #2.
© Engage Selling Solutions Inc. 10

11. Final Thoughts
Pipeline Velocity is a major component and deserves your full attention. Getting it right will give you
the keys to unlock a way of working that can create the Nonstop Sales Boom you're looking for, year
over year.
© Engage Selling Solutions Inc. 11