Pipeline management allows CRM managers to answer several important questions:
- It enables them to accurately predict future revenues
- It helps them analyze the sales process and identify weak spots
- It can alert a sales manager about a future sales slump or sales growth
- It shows aggregate sales velocity - the time it takes on average to turn an incoming lead into a paying customer
Advanced CRM software allows managing multiple pipelines. Suppose you run a car dealership and make money selling cars, selling car parts and providing repairs. If you only have one pipeline (new car sales or repairs), this means you won't be able to accurately track and analyze multiple lines of business and profit centers.