In this guide 6 sections
Design pipeline stages from things a buyer does that you can check, such as a site visit done, a quotation sent or a sample approved. Give each stage an exit rule and a stall alert. Skip stages based on feelings.
Why stages built on opinion fail
Warm, Hot and Very Hot mean something different to every rep. One person calls a lead hot after a friendly phone call, while another waits for a purchase order before using the word. Your forecast turns into a poll.
Observable stages remove the argument. The site visit happened or it did not. The quotation went out or it did not, and anyone can open the record and agree.
Start by walking one recent won deal backwards from payment to first enquiry, and write down each thing the buyer did with its date.
Write an exit rule for every stage
An exit rule is the proof needed to move a deal forward, and it should be a field or an attachment, not a mood. Site visit done needs a visit date. Quotation sent needs the quote file and its number.
Keep the rules few. Two required fields per stage is plenty, because too many forms make reps skip logging altogether, which is the real enemy of any pipeline.
Set the CRM to block the move until the rule is met. It feels strict on day one. It saves months of cleaning later.
- Qualified: budget range and decision maker named
- Visit done: date, address and measurement note
- Quotation sent: file attached, validity date set
- Won: purchase order or advance payment reference
Add a stall alert so no deal sits unseen
Each stage has a normal duration. A quotation idle for fourteen days is probably dead or needs a call. Set each stage limit from your own past deals.
Send the rep a task when the limit passes, and send the manager a weekly list of stalled deals by owner so that nothing quietly ages out of sight. The alert is a prompt, not a punishment.
Review the limits after one quarter. Most deals tripping the alert means the limit is wrong.
Three example stage sets
Field sales, such as a waterproofing or interiors firm, often runs Enquiry, Site visit done, Quotation sent, Revision, Order received and Work started. The visit matters most, because the price depends on what the surveyor measured on site.
Project sales run longer: Lead, Requirement signed off, Proposal submitted, Technical clarification, Negotiation and Contract signed. A consultant or tender desk often sits mid-way, so add a field for them.
Distribution sales repeat and move fast: Prospect, Sample approved, Trial order, Credit terms agreed and Regular buyer. Credit is the gate.
- Field sales: visit and quotation drive the sequence
- Project sales: sign-off and contract mark the gates
- Distribution: sample and credit terms are the gates
Test the stages on live deals before you roll out
Load twenty open deals into the new stages and ask each rep to place their own. A deal placed two ways exposes an unclear rule.
Fix the wording, then freeze the stage list for a full quarter, since constant renaming wrecks trend reports and confuses every new joiner. Resist tinkering.
Print the stage sheet. Pin it up. Review it at the first Monday meeting, and ask which exit rule slowed a rep down the most.
Pipeline stage design sheet
One row per stage and five columns: stage name, buyer action that proves it, required fields or attachment, stall limit in days and owner of the follow-up. Beneath the grid sits a walk back box for the won deal, listing each dated buyer action from first enquiry to payment.
Open a blank worksheet to printQuestions owners ask
How many pipeline stages are right?
Five to seven for most small teams. Fewer hides where deals stall, and more makes reps skip the logging, so map each stage to one thing a buyer actually does.
Should lost deals be a stage?
Treat lost as a closed outcome with a required reason, not as a stage. Price, timing or competitor reasons give you data to act on.
Do we need different pipelines for different products?
Only if the buying steps differ. A site-visit product and a catalogue product behave differently, so they deserve separate pipelines. Otherwise use one with a product field.
How do we handle repeat customers?
Open a new deal for each order and link it to the same account. That keeps conversion and cycle time honest, instead of burying repeat orders inside one old deal.