A sales opportunity is a source of potential business – it’s literally an “opportunity” to offer your product or service to an interested individual or business, and represents an "opportunity" for revenue. Generally, an opportunity comes from one of two places:
An existing customer, who has done some form of business with you in the past, and is returning for additional products or services.
Opportunities go through a number of stages in their life cycle (from initial interest to new customer or business) called the pipeline.
What is the pipeline?
The pipeline expresses the value of your current potential sales, depending how far your opportunities have progressed towards a sale.
In Method, the pipeline consists of nine opportunity stages:
Prospecting: Determining the level of interest a potential customer has in your product or service.
Qualification: Qualifying a lead or customer by using criteria including how interested they are, how likely they are to purchase, etc.
Needs Analysis: Determining whether or not your product or service is a good fit based on their requirements.
Value Proposition: Understanding what the value of your product or service is, and determining how valuable a customer would find it.
Identify Decision Makers: Identifying the person or people with the power to make purchasing decisions, and develop a relationship with them.
Perception Analysis: Determining how a customer perceives your product or service and their expectations of you.
Proposal / Price Quote: Creating a quote and/or a proposal for review.
Negotiation / Review: Hammering out the final details of the deal.
Closed - either Closed Won or Closed Lost:
Closed Lost: The customer does not pursue your product or service.
We log lost opportunities to gather data on how to improve our sales pipeline, products, services, marketing, etc.
Closed Won: A sale is agreed upon. If the opportunity came from a lead, that lead is converted to a customer.
These stages represent the progression of a sales opportunity towards a successful sale. The closer an opportunity gets to the closed won stage, the more potential revenue the opportunity is worth. This revenue is called the pipeline amount (please see Intro to charts for more information).