By Terry Slattery
It stands to reason that a tight economy presents fewer sales opportunities. That means salespeople can't afford to be distracted by false prospects that waste their time while their competitors talk with true prospects. And, management must keep their sales teams on track, identifying the difference between a true revenue pipeline and a pipe dream created by salespeople spinning their wheels and creating a bloated, unrealistic lineup of prospects.
What is the difference between a pipeline and a pipe dream? A pipeline contains prospects the salesperson has qualified and gained commitment from prior to developing a proposal, presenting a demo, etc. The salesperson is in control. A pipe dream is a forecast rife with uncertainties, such as the prospect's decision-making process and who is involved and when the business will close. The prospect is in control.
Listen for Clues
Let's compare the language of a pipeline with a pipe dream to help you discern which trail your salespeople are blazing. If you hear, "We have a chance to quote," chances are your salesperson is pursuing a pipe dream. When your salesperson says, "The prospect has agreed to open, honest dialog and will answer our questions," that is the first step in the right direction for creating a pipeline. There's a clear distinction between the two mindsets, with the former prospect intent on holding all vendors hostage.
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