A qualified contact or accountAccountAccount refers to a record of primary and background information about an individual or corporate customer, including contact data, preferred services, and transactions with your company. is referred to as a sales opportunity. A leadLeadLead refers to a prospect or potential customer (who can be an individual or organization) that exhibits interest in your service or product; or any additional information about such entity. is on its way to becoming an opportunity when it enters your sales funnelSales FunnelSales Funnel is a visualization of the sales process that defines the stages through which prospective customers go through as they are led by sales professionals towards a purchasing decision. and expresses a need for your services. You must then initiate contact with the lead and conduct research on their budget, timeline, purchasing authority, and so on.
Leads become opportunities. Leads are individuals who have expressed an interest in your productProductProduct refers to anything (an idea, item, service, process or information) that meets a need or a desire and is offered to a market, usually but not always at a price. or service via various channels, such as downloading promotional materials or receiving a sales call.
Your “opportunity” is the critical stage between identifying a lead and closing or losing a deal. You get to introduce your product and persuade your prospect to buy it. Your sales team has most likely expended significant effort in interacting with the right people, involving stakeholders, making presentations, and showcasing demos to assist them in making that purchasing decision.
What Is A Sales Opportunity Management Software?
Sales opportunity management is a process that aids in the management and monitoring of sales opportunities as they progress through the pipelinePipelineSales pipelineis a visual representation of the stage prospects are in the sales process.. By effectively managing opportunities, you can significantly increase the chances of conversionConversionConversion is the process of turning a target consumer into a paying customer; or more generally, the point at which a user performs a specific action favorable to a marketer or a seller. and generate more profit.
By establishing a clear process for sales representatives to follow, opportunity management enables you to close more sales.
It is a comprehensive strategy that takes into account your organizationOrganizationOrganization is a cohesive group of people working together and formally bound by a shared identity (e.g., one team, company, club, etc.) and a common purpose (e.g., business growth, athletic victory, etc.).’s overall success and growth. Opportunity management can boost your sales team’s productivity and performance by serving as a roadmap for optimizing the sales processSales ProcessSales Process is a series of strategic steps or a set of activities aimed at driving sales growth through the alignment of personnel, market insight, methodologies, relevant business units, and technology. and its steps.
The process also highlights potential risks and opportunities in your sales pipelineSales PipelineSales Pipeline is a type of visualization showing the status of each sales prospect in the customer life cycle or sales process.. Access to such critical information enables your sales team to take timely action and provide services tailored to prospects’ needs.
Why Does It Matter For Businesses?
Sales opportunity management is important because it allows you to sell more efficiently. Effective sales opportunity management allows you to gain a better understanding of your customers, allowing you to prioritize your dealings with them based on their potential. You can assess risk factors and save time on lost deals. You can use opportunity management to:
Understand potential buyers and their specific needs.
Discover potential risks early in the sales pipeline.
Keep an eye on the deal’s progress.
Create effective business proposals and close deals with legally binding contracts.
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A lead is a sales prospectSales ProspectSales Prospect is a potential consumer of your product or service who meets a given set of benchmarks; typically a sales lead whose financial capacity, buying authority and willingness to purchase are found sufficient enough to qualify and be upgraded in the sales funnel as a prospect., whereas an opportunity is a potential deal with a qualified prospect who has a high likelihood of becoming a customerCustomerCustomer is an individual or an organization that purchases a product or signs up for a service offered by a business.. A sales opportunity should address a pain point that is relevant to the product or service being sold. A lead, on the other hand, is someone interested in your product or service in general.
There are some benefits to using opportunity management in your business:
Optimize your opportunity pipeline workflow: By standardizing your sales process, you will be able to keep your opportunities moving forward.
Increase your win ratio by understanding what you need to do next in each step and applying proper sales techniques.
Improve your understanding of your opportunities: It will be much easier to see which opportunities are the most important.
Opportunity Management in CRM
Many businesses use a CRM system to manage their opportunity pipeline. Customer relationship management software can assist you in streamlining your sales, marketingMarketingMarketing is the field, set of actions, or practice of making a product or service desirable to a target consumer segment, with the ultimate aim of effecting a purchase., and support processes. Automation features increase visibility at each stage of the sales funnel and allow you to track opportunities more effectively.
CRM software can move opportunities through the pipeline from introduction to closure. CRM opportunity management enables you to:
Capture information about opportunities from various sources.
Examine the efficacy of each step in the sales pipeline.
Prioritize opportunities by devoting more time to those that have the potential to convert.
Manage the history of the sales cycleSales CycleSales Cycle is a repeating process characterized by a predictable sequence of stages that a company undergoes as it sells its products and services to customers. and automate workflow processes such as follow-ups.
Create and email quotes and proposals to prospects for a quick response.
Create graphical reports with detailed metricsMetricsMetrics are quantities that are measured and used to: to understand what is working and what isn’t while managing opportunities.
Sales Opportunity Management Software
A sales opportunity occurs when you introduce your product to a lead in the hopes of closing a sale. This stage frequently includes stakeholderStakeholderStakeholder is an entity with an interest in a company, process, or product, and which is typically concerned about its wellbeing. meetings, presentations, and demos – all of which highlight your product and position it as a solutionSolutionSolution is a combination of ideas, strategies, processes, technologies and services that effectively helps an organization achieve its goals or hurdle its challenges. to the clientClientA client is an entity who pays another entity for products purchased or services rendered. Also called a customer.’s problems. Sales opportunity management software equips your team with the necessary tools to tackle each opportunity to the best of their abilities.
Sales opportunity management software can assist your team in the following ways:
Based on accurate dataDataData is a set of quantitative and qualitative facts that can be used as reference or inputs for computations, analyses, descriptions, predictions, reasoning and planning.forecastingForecastingForecasting is a prediction or calculation of a trend or event likely to occur in the future based on qualitative, quantitative and historical data as well as emergent but relevant factors., prioritize which opportunities to pursue.
Make a to-do list of the steps required to close the sale.
Get a complete picture of your prospect by gathering information from stakeholders, past interactions, and other related activities.
Improve sales team member collaboration.
Pay attention to what your competitors are doing.
A mobile app can help sales reps on the go.
Keep important documents such as proposals, quotes, and invoices in a database that is easily accessible.
Why Do You Need a CRM For Opportunity Management?
It takes time and effort to manage opportunities effectively, but the payoff is well worth it. If your company is facing problems managing sales opportunities, it may be time to implement a new CRM solution.
A CRM not only simplifies opportunity management, but also provides instant insights into your potential customers.
CRM, or proper sales opportunity management software, will instantly, consistently, and in real-time:
The pipeline’s effectiveness
The efficiency of each pipeline stage
The efficiency with which tasks and activities are carried out within each pipeline step
The importance of your opportunities
The weakest and strongest of your opportunities, as well as everything in between
Understanding and implementing sales opportunity management through a robust and effective CRM solution is critical to a company’s survival and success.