🚀 How to assess sales pipeline health?

3 tactics, 2 traps and 1 tool to assess sales pipeline

Hello founders!

Welcome to ‘Tactical Tips’ by Jerel and Shuo at DECODE, where we cover one new idea to help you build and grow your startup – every week in <5 minutes!

Today, we’ll be answering the question: “How to assess sales pipeline health?

And here’s advice inspired by Sammy Abdullah, Founder and Managing Partner at Blossom Street Ventures, and Ray Makela, Managing Director of Talent Development at SBI Growth Advisory.

If you want to look ahead at leading indicators to predict whether you will hit your sales numbers, today’s newsletter is for you.

🔥 Inside this issue:

✅ 3 tactics to assess sales pipeline health
✅ 2 traps to avoid 
✅ 1 tool to leverage 

👇Let’s dive in.

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3 tactics to assess sales pipeline health

🔎 Check pipeline size and quality

  • Track two key metrics:

    • Number of new opportunities entering the pipeline 

    • Net new dollars those opportunities are adding each month

  • Evaluate if the opportunities align with the ideal customer profile (ICP); non-ICP leads soaks up resources and time

  • A healthy pipeline shows growth in ICP-fit leads and a reduction in non-ICP ones, even if it is a smaller overall pipeline

👂 Track deal velocity and stage health

  • Compare how long deals are moving through each stage to an average deal of similar type (e.g. deal size, ICP, product, etc)

    • How long has the deal been at the current stage compared to this average?

    • Is the closing date appropriate for where the deal is in the sales process?

  • Check for consistency in the pace of ICP leads; any inconsistency indicates a sales process or personnel issue

  • Look for deals propelled by urgency and qualified buyers; unqualified prospects and uncommitted decision makers stall deals

  • Flag stagnant deals where neither the sales team nor buyer is actively engaged and take immediate action to revive or close them

💰 Evaluate the shape of the pipeline

  • A healthy pipeline is a funnel: wide at the top, narrowing toward closed deals

  • Bloat in the middle or bottom stages = sales leadership problem

    • Middle-stage bulge → enforce disciplined follow-up and qualification

    • Bottom-stage bulge → check for real budget and executive sponsorship, remove roadblocks actively

  • Clean the pipeline by asking:

    • “What specific actions are expected from the customer, and by when?” No clear answer → deal isn’t actively managed.

    • “Is this still a qualified opportunity? What is being done to get this deal unstuck? When is the next action?”

  • Force decisive action:

    • Choice #1: Disqualify the opportunity

    • Choice #2: Move it back up the pipeline and reduce the probability

    • Choice #3: Move it out of the active pipeline until a tangible customer action occurs (e.g. customer initiating a conversation) 

2 traps to avoid

🚨 Confusing a full pipeline with a bloated pipeline

  • Bloated pipeline = stale, stuck, or dormant deals that drag performance and make it hard to forecast with accuracy

  • Clear out stalled opportunities or force a specific next-step plan

  • Salespeople need adequate time to tailor presentations to prospect’s specific needs

  • Smaller, active pipelines = higher focus, passion, and win rate

🚨 Ignoring individual pipeline performance

  • Overall pipeline may look fine but individuals (between co-founders and/or sales reps) may be struggling

  • Look at both the overall pipeline and individualized pipeline based on the leads they have

  • Compare deal speed, shape, and close rates to each individual pipeline; misalignment signals a personnel problem

1 tool to leverage

📖 Best practice on sales pipeline

  • Typical pipeline size is 3x of sales goals, but aim for pipeline size to be 4x to 5x greater given typical close rate is around 20%

  • Leverage Hubspot CRM to track and manage your sales pipeline for free

Bonus: 1 trend to spark startup ideas

📈  Real estate agents are drowning in paperwork

  • The $4.1T global real estate market generates massive transaction volumes but agents spend 30 out of 40 hours of work for each deal on administrative tasks

  • Manual bottleneck is suffocating productivity - real estate professionals juggle property showings, client communications, contract negotiations, and endless documentation using spreadsheets and paper forms as 61% of firms still rely on legacy systems

  • Every real estate deal follows predictable workflows with structured documentation that AI can automate (e.g. standardized contracts, MLS listings, property comparables, mortgage applications, and transaction histories etc)

  • Three transformation opportunities:

    • Automated property valuation: AI analyzes comparable sales, market trends, and neighborhood data to generate instant accurate valuations, replacing manual comparative market analysis that takes hours

    • Contract and document automation: Natural language processing extracts key terms from purchase agreements and generates compliant paperwork, eliminating manual drafting and review cycles

    • Lead qualification and client matching: ML algorithms analyze buyer preferences, financial profiles, and behavior patterns to instantly match qualified prospects with suitable properties

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