{"id":7604,"date":"2021-06-04T11:28:00","date_gmt":"2021-06-04T05:58:00","guid":{"rendered":"https:\/\/kylas.io\/?p=7604"},"modified":"2023-04-24T10:12:33","modified_gmt":"2023-04-24T04:42:33","slug":"sales-cycle-pipeline-funnel","status":"publish","type":"post","link":"https:\/\/kylas.io\/en\/sales-strategy\/sales-cycle-pipeline-funnel","title":{"rendered":"Are Sales Cycles the Same as Sales Pipelines or Sales Funnels?"},"content":{"rendered":"\n

Sales includes a lot of different terminologies and terms<\/span><\/span><\/a> that can tend to be confusing for sales beginners to understand. If you are a newbie on a team, you probably find yourself silent and nodding along when you hear a new term, or trying to fake it till you make it. Hence, if you\u2019ve been using the words \u201csales cycle\u201d, \u201csales pipeline<\/span>\u201d and \u201csales funnel<\/span><\/span><\/a>\u201d interchangeably, you\u2019ve been doing it wrong! And as you do come across these terms pretty often at work, let\u2019s set you straight. <\/p>\n\n\n\n

<\/div>\n\n\n\n

As we said, \u2018sales cycle\u2019, \u2018sales pipeline\u2019, and \u2018sales funnels\u2019 are not the same thing. In fact, a lot of people \u2013 not just beginners in sales \u2013 tend to confuse the terms \u2018pipeline\u2019 and \u2018funnel\u2019. However, all these 3 terms mean something different! <\/p>\n\n\n\n

<\/div>\n\n\n\n

Let\u2019s talk about each. <\/p>\n\n\n\n

<\/div>\n\n\n\n

1. Sales Cycle<\/strong><\/h2>\n\n\n\n
<\/div>\n\n\n\n

Every product has a typical buying pattern or buying behavior<\/span><\/span><\/a> attached to it. This usually influences the sales cycle. <\/p>\n\n\n\n

.<\/p>\n\n\n

\n
\"Are<\/figure><\/div>\n\n\n

For example, consider the purchase of a home. <\/p>\n\n\n\n

.<\/p>\n\n\n\n

The process begins with the want\/need to buy a home, and then researching the process and available options online. Next, you will talk to potential sellers\/developers, make physical site visits and plan finances. Eventually, you will make the actual purchase and documentation.<\/p>\n\n\n\n

.<\/p>\n\n\n\n

This is a lengthy process, taking months and sometimes years from the realization of the need to the actual purchase. <\/p>\n\n\n\n

<\/div>\n\n\n\n

This influences what the sales cycle will look like. In this case, creating awareness about the product, keeping the customer engaged and good customer service will help.<\/p>\n\n\n\n

<\/div>\n\n\n\n

However, longest part of most sales cycles is the engagement phase. This phase is even longer for products that have a longer buying cycle. <\/p>\n\n\n\n

<\/div>\n\n\n\n

Why is it called a cycle, you ask? <\/p>\n\n\n\n

<\/div>\n\n\n\n

Because every time the customer makes the purchase, he goes through the same process again. In the case of this real estate example, he\/she will go through the same sales cycle stages every time they buy a home.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Stages of a sales cycle:\u00a0<\/mark><\/h4>\n\n\n\n
<\/div>\n\n\n
\n
\"Stages<\/figure><\/div>\n\n\n

1. Lead Prospecting <\/h3>\n\n\n\n

.<\/p>\n\n\n\n

This is the very start of the sales cycle, where you\u2019re looking for leads that meet your target audience criteria and are likely to turn into buyers.<\/p>\n\n\n\n

.<\/p>\n\n\n\n

2. Lead Qualification<\/h3>\n\n\n\n
<\/div>\n\n\n\n

This stage is all about qualifying a lead as a serious potential buyer of your product\/service, based on your company\u2019s pre-determined criteria.<\/p>\n\n\n\n

<\/div>\n\n\n\n

3. Customer Engagement<\/h3>\n\n\n\n
<\/div>\n\n\n\n

This stage is all about capturing the interest of leads, keeping them engaged and interested in your product, and inching them toward buying it, so they will be leaning toward your product when it\u2019s time to make a decision.<\/p>\n\n\n\n

<\/div>\n\n\n\n

4. The Sale<\/h3>\n\n\n\n
<\/div>\n\n\n\n

This stage involves pricing negotiation, having papers drawn up, etc. – the actual act of the sale.<\/p>\n\n\n\n

<\/div>\n\n\n\n

5. Customer Relationship Management<\/u><\/a><\/h3>\n\n\n\n
<\/div>\n\n\n
\n
\"Stages<\/figure><\/div>\n\n\n

For a lot of products, retaining a customer and getting more business from a customer is more important than the first sale. This stage is where your customer success team comes in. <\/p>\n\n\n\n

.<\/p>\n\n\n\n

It\u2019s important to note that the sales cycle will have more or less the same stages for every company in the market selling the same type of product\/service as you. <\/p>\n\n\n\n

<\/div>\n\n\n\n

2. Sales Pipeline<\/strong> <\/h2>\n\n\n\n
<\/div>\n\n\n\n

A sales pipeline is determined by a company\u2019s internal processes, but it is based loosely on the buying cycle.  <\/p>\n\n\n\n

<\/div>\n\n\n
\n
\"Are<\/figure><\/div>\n\n\n

Think of it this way: It\u2019s difficult to track a lead from the stages in the sales cycle because it creates subjectivity. You can\u2019t send in a report to your sales manager saying \u201c186 leads are in the prospecting stage\u201d.  <\/p>\n\n\n\n

.<\/p>\n\n\n\n

So, companies create a pipeline of stages that a customer moves through on the way to making a purchase.<\/p>\n\n\n\n

<\/div>\n\n\n\n

For example, for one of our clients, we created a pipeline that began with the stage \u201cIncoming\u201d, to apply to all the leads that just have come in (inbound) into the system. The report, in this case, would show 186 leads in the incoming stage.<\/p>\n\n\n\n

<\/div>\n\n\n\n

The idea is that you plan your sales pipeline stages as per your company processes. If you don\u2019t conduct outbound sales calls to get leads, an \u201cincoming\u201d stage is the first stage you\u2019ll need for leads that have just gotten generated on one of your marketing platforms. <\/p>\n\n\n\n

<\/div>\n\n\n\n

Here\u2019s an example of sales pipeline stages to give you a better idea-\u00a0<\/mark><\/h4>\n\n\n\n
<\/div>\n\n\n\n
  1. Incoming<\/strong>: For leads that have registered to know more about\/try\/buy your product <\/li><\/ol>\n\n\n\n
    <\/div>\n\n\n\n
    1. Qualified<\/strong>: For leads that have gone through the lead qualification process and come out as potential buyers, so marked by the lead qualification team <\/li><\/ol>\n\n\n\n
      <\/div>\n\n\n\n
      1. Unqualified<\/strong>: For leads that have gone through the lead qualification process and have not<\/em> come out as potential buyers, so marked by the lead qualification team <\/li><\/ol>\n\n\n\n
        <\/div>\n\n\n\n
        1. Prospect<\/strong>: For leads that have had two or more conversations with your sales team and are interested <\/li><\/ol>\n\n\n\n
          <\/div>\n\n\n\n
          1. Hot<\/strong>: For leads on the verge of conversion <\/li><\/ol>\n\n\n\n
            <\/div>\n\n\n\n
            1. Lost<\/strong>: For leads that get lost due to any reason \u2013 disinterest, choosing to buy with a competitor, just decide not to buy, etc. <\/li><\/ol>\n\n\n\n
              <\/div>\n\n\n\n
              1. Converted<\/strong>: For leads that have converted into a sale <\/li><\/ol>\n\n\n\n
                <\/div>\n\n\n
                \n
                \"The<\/figure><\/div>\n\n\n

                The idea of having a sales pipeline is to bring structure and convenience to your sales process. <\/p>\n\n\n\n

                .<\/p>\n\n\n\n

                The different stages of the pipeline are even configured into the CRM you use. This makes it easy for sales team members to update the stage for each lead as he\/she goes through their buying cycle.  <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                There\u2019s no right or wrong way to decide the stages of your sales pipeline. Although, we recommend being concise enough to have stages to cover every eventuality. However, do not overcomplicate things with too many stages. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                3. Sales Funnel<\/strong> <\/h2>\n\n\n\n

                .<\/p>\n\n\n

                \n
                \"What<\/figure><\/div>\n\n\n

                This one is the most nuanced of all, so brace yourself. <\/p>\n\n\n\n

                .<\/p>\n\n\n\n

                A \u2018sales funnel<\/u><\/a>\u2019 is based on the concept that you\u2019ll always get in a lot of leads. These will peter out with each stage of the funnel until only a fraction turns into actual sales. <\/p>\n\n\n\n

                .<\/p>\n\n\n\n

                Whether you know what a sales funnel is or not, you\u2019ll know that this phenomenon is true. Due to consumer behavior and market competition not everyone who shows interest in your product will actually become a customer. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                However, here\u2019s where it gets a little confusing. The stages in the sales funnel will (in all probability) be the same as your sales pipeline. What differentiates it from the sales pipeline, however, is what it represents. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                A sales pipeline represents the movement of leads from one stage to another, closer to the final sale. When you\u2019re looking at your pipeline, you\u2019re simply looking at how many leads you have on the way to a sale. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                A sales funnel represents how<\/em> many and how fast the leads are moving between stages, towards the final sale. When you\u2019re looking at the health of your sales funnel, you\u2019ll be looking at the conversion rate from one stage to the next. This way, you can determine what\u2019s going right and what\u2019s going wrong at each stage. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                What does a Sales Funnel Represent?<\/mark><\/h4>\n\n\n\n
                <\/div>\n\n\n\n

                A sales funnel isn\u2019t something you usually build into a sales CRM system. It\u2019s simply a manner of looking at things \u2013 your leads, your sales process, and your sales data. It\u2019s less tangible than a sales pipeline. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                In fact, many studies have recently come out against the use of the sales funnel, citing that it\u2019s an old-fashioned way to look at sales. They have instead suggested looking at it more like a cycle to better reflect the churn, upselling, and retention of customers that have become commonplace today. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                However, while we don\u2019t know for how many more decades we\u2019ll be looking at sales funnels, you\u2019ll still need to understand it for your work in a sales team today. <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                Besides, if a manager interchangeably uses sales funnel and sales pipeline, we wouldn\u2019t recommend correcting him. Perhaps, just understand the context in which they\u2019re using the term.<\/p>\n\n\n\n

                <\/div>\n\n\n\n

                Differentiating Between a Sales Cycle, Sales Pipeline & Sales Funnel<\/strong> <\/h2>\n\n\n\n
                <\/div>\n\n\n
                \n
                \"Differences<\/figure><\/div>\n\n\n
                <\/div>\n\n\n\n

                If a comparison of sales funnel vs pipeline was done, the main difference lies in the insights that they each convey. Sales funnel represents the movement of leads through the sales process, however sales pipeline represents the buyer’s journey. <\/p>\n\n\n\n

                We hope that gives you a clear idea of what \u2018sales cycle\u2019, \u2018sales pipeline\u2019, and \u2018sales funnel\u2019 mean, and how they\u2019re different from each other! These are all terms you\u2019re likely to come across quite often in your day-to-day work around the office.<\/p>\n\n\n\n

                <\/div>\n\n\n\n

                However, they\u2019re also the kind of terms that feel so basic that you don\u2019t want to ask anyone to explain the difference between them! So, we\u2019re happy to be your go-to resource for any questions you may have.  <\/p>\n\n\n\n

                <\/div>\n\n\n\n

                If there\u2019s anything else you\u2019d like clarified, feel free to reach out in the comments below! <\/p>\n","protected":false},"excerpt":{"rendered":"

                Sales includes a lot of different terminologies and terms that can tend to be confusing for sales beginners to understand. If you are a newbie on a team, you probably find yourself silent and nodding along when you hear a new term, or trying to fake it till you make it. Hence, if you\u2019ve been using … <\/p>\n

                Continue reading “Are Sales Cycles the Same as Sales Pipelines or Sales Funnels?”<\/span><\/a><\/p>\n","protected":false},"author":23,"featured_media":14807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"ub_ctt_via":"","footnotes":""},"categories":[12,34],"tags":[8,58],"acf":[],"featured_image_src":"https:\/\/kylas.io\/en\/wp-content\/uploads\/2021\/06\/PB-Banner-Guide-Images-ONLY-3.jpg","author_info":{"display_name":"Shagun Sharma","author_link":"https:\/\/kylas.io\/en\/author\/shagun"},"yoast_head":"\nAre Sales Cycles the Same as Sales Pipeline or Sales Funnel?<\/title>\n<meta name=\"description\" content=\"For anyone new to sales, the terms sales cycle, sales pipeline and sales funnel sound the same. 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In her leisure time, Shagun enjoys hiking, gardening, and immersing herself in music."}]}},"_links":{"self":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7604"}],"collection":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/comments?post=7604"}],"version-history":[{"count":36,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7604\/revisions"}],"predecessor-version":[{"id":18496,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/posts\/7604\/revisions\/18496"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/media\/14807"}],"wp:attachment":[{"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/media?parent=7604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/categories?post=7604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kylas.io\/en\/wp-json\/wp\/v2\/tags?post=7604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}