What does the term "pipeline" mean in sales?

The term "pipeline" in sales refers to the stages and processes through which a sales opportunity progresses. This concept is central to sales management, as it allows sales teams to visualize and track the flow of potential deals from initial contact through to closing. In a typical sales pipeline, opportunities are categorized based on their stage, such as lead generation, qualification, proposal, negotiation, and closing. By managing and analyzing the pipeline, sales teams can forecast revenue, identify bottlenecks, and optimize their sales strategies to improve efficiency and effectiveness in converting prospects into customers. This systematic approach enables sales professionals to focus their efforts where they are most likely to yield results.