Skip to content
Two Creative People Working Together At Computer
KristaOct 28, 20248 min read

Sales Funnel vs. Sales Pipeline. Which Do You Really Need?


Sales Funnel vs. Sales Pipeline. Which Do You Really Need?
10:55

In the fast-paced world of manufacturing and B2B services, business owners are often pulled in many directions, and the question of how to manage and optimize their sales processes can be perplexing. Amid the ongoing debate over sales funnels and sales pipelines, many are left wondering which approach will best serve their business needs. Both concepts are integral to guiding prospects through the sales journey, but each possesses unique features that serve different purposes. So, the big question remains: Sales Funnel vs. Sales Pipeline — which do you really need?

Short answer: You need both.

Understanding the unique characteristics and purposes of both frameworks is essential for businesses looking to streamline their sales processes, maximize revenue, and drive growth. In this blog, we’ll break down the key differences between sales funnels and sales pipelines, summarize key insights from other sources, and introduce three new strategies to help you optimize both for greater success.

Understanding Sales Funnels and Sales Pipelines

Before diving into how to effectively use both frameworks, let’s establish a clear understanding of what sales funnels and sales pipelines are and why they matter.

Sales Funnel

A sales funnel is a broad framework that illustrates the journey prospects take from initial awareness of your business to making a purchase. The funnel is typically divided into stages — awareness, interest, decision, actions — and it narrows as prospects move through these stages, with fewer individuals making it to the final step of becoming a customer. A sales funnel is focused on volume and the progression of leads.

Sales Pipeline

A sales pipeline is a more detailed, stage-by-stage view of the sales process. It tracks individual leads and opportunities as they move through specific steps toward closing a deal. It’s a visual tool that allows businesses to see where each prospect or deal stands in the sales journey and what actions are required to move them forward.

While the sales funnel helps you focus on converting leads at various stages of interest, the pipeline helps your sales team track progress and prioritize their efforts more effectively.

Why Business Owners Should Care

Sales funnels and sales pipelines are not just abstract concepts; they directly impact your bottom line. As a business owner, you need predictable, repeatable processes that drive revenue. The consequences of a poorly structured or misunderstood sales process are tangible: deals stagnate, leads fall through the cracks, and your sales team wastes time on low-value tasks.

At the same time, you’re likely concerned with scalability. You may feel stuck — perhaps you’ve scaled your operations, but sales growth hasn’t followed, or maybe your team struggles to handle the volume of leads you’re generating. This is where a well-defined sales process, incorporating both funnels and pipelines, can give your business the structure and efficiency it needs to succeed.

The Differences Between Sales Funnels and Sales Pipelines


1. Focus and Purpose

  • Sales Funnels focus on volume and progression. It’s a high-level view that tracks the flow of leads from initial contact to final sale, providing insight into how many leads make it through each stage of your sales process. It’s ideal for understanding how many potential customers you’re bringing in and where they are dropping off.
  • Sales Pipelines are focused on individual opportunities and specific actions that drive deals forward. They help your sales team stay organized by outlining the exact steps needed to close a sale, making it easier to forecast revenue and identify which opportunities are most promising.

2. Stages and Detail

  • Funnels include broad stages like awareness, interest, decision, and action. It’s great for nurturing, helping you understand how many people are moving from being aware of your business to considering your product or service.
  • Pipelines, on the other hand, break the process into smaller, more detailed stages, such as "Lead Qualification," "Proposal Sent," "Negotiation," and "Deal Closed." Each stage is accompanied by clear actions your team needs to take to advance the opportunity.

3. Volume vs. Quality

  • Funnels capture a wide range of leads at the top, narrowing down as only the most qualified or interested prospects continue through the journey.
  • Pipelines focus on the quality of individual opportunities. Each prospect is already somewhat qualified, and the pipeline helps your sales team prioritize and take action on the highest-value leads.

Summarized Insights from Related Blogs

Let’s recap some of the key points from related articles on this subject:

Building a Sales Pipeline for Predictable Growth

A well-structured sales pipeline helps your business achieve predictable, consistent growth by breaking down each stage of the sales process into clear, actionable steps. When your sales team knows exactly what needs to be done at each stage, they can focus on advancing deals and closing sales, leading to greater efficiency and better results​

Learn more: Read our full article on building a predictable sales pipeline.

Understanding the Sales Funnel

The sales funnel provides an overarching framework that helps you understand where your leads are in the buyer’s journey. It highlights the need for nurturing prospects at different stages, guiding them from awareness to decision. Optimizing the funnel involves knowing when and how to engage leads based on their position in the funnel​.

Learn more: Read our detailed guide on understanding the sales funnel.

Sales Pipeline: Beyond the Basic Definition

A sales pipeline gives you more control over individual deals and their movement through the process. It focuses on ensuring that no opportunities are missed and that each deal is moving forward efficiently. This blog highlights common pipeline challenges like vague stage definitions and missing actionable steps and offers expert tips on how to address these issues.

Learn more: Read our in-depth article on optimizing your sales pipeline.

Fixing Common Sales Pipeline Challenges

A well-defined sales pipeline is crucial for tracking opportunities and guiding them through the sales process. However, many businesses face common challenges such as vague stage definitions, missing actionable steps, and a lack of clear signs of prospect commitment. Overcoming these obstacles ensures that your pipeline drives efficiency and maximizes revenue.

Learn more: Read our full article on how to fix common sales pipeline challenges.

How to Leverage Both Frameworks for Greater Success

The reality is that both sales funnels and sales pipelines are essential to a strong sales strategy. Each offers different, but complementary, views of the sales process. Here’s how you can leverage both to drive better outcomes:

1. Align Your Sales Funnel with Your Pipeline

The sales funnel provides a high-level overview of the customer journey, while the pipeline offers a detailed roadmap for your sales team. Aligning the two means that the broad stages of the funnel are supported by specific actions in the pipeline. For example, if a lead is in the "consideration" stage of the funnel, your pipeline should include specific actions like sending a proposal or scheduling a demo.

2. Use Data from the Funnel to Optimize the Pipeline

Analyzing data from your funnel can help you identify bottlenecks in the pipeline. If a large number of leads are stalling at a particular stage, it’s time to examine what’s happening in the corresponding pipeline stage and make adjustments. By refining both, you can improve the overall efficiency of your sales process.

3. Automate Routine Tasks

Automation is key to making both your sales funnel and pipeline work efficiently. For example, use CRM tools to automatically assign new leads to the appropriate funnel stage and schedule follow-up tasks based on pipeline actions. This ensures that leads are nurtured and that sales opportunities don’t fall through the cracks.

Three New Strategies to Optimize Both Your Sales Funnel and Pipeline


1. Implement Lead Scoring

To improve the efficiency of your sales funnel and pipeline, consider implementing lead scoring. Lead scoring assigns a value to each lead based on their behavior and engagement with your business. Leads with higher scores are further along in the funnel and more likely to convert, making it easier for your sales team to prioritize which opportunities to pursue in the pipeline.

2. Create Personalized Sales Journeys

Not all leads are the same, and neither should their journey be. By segmenting your funnel and pipeline based on different buyer personas or industries, you can create personalized experiences that resonate more deeply with prospects. For example, B2B service leads may require a different approach than manufacturing leads. Tailoring both the funnel and pipeline for each segment increases the chances of moving leads through the process faster.

3. Regularly Audit and Adjust Your Processes

Both the sales funnel and pipeline are dynamic frameworks that need constant attention. Regularly auditing your funnel and pipeline ensures that they remain aligned with your business goals. Look for stages where prospects are stalling or falling out and adjust your process to address these issues. Over time, this will help you refine your approach and improve conversion rates.

Ready to Optimize Your Sales Process? Here's How to Get Started

Deciding between a sales funnel and a sales pipeline doesn’t have to be an either-or choice — both are essential to streamlining your sales process. But how do you implement and manage these frameworks efficiently? That’s where we come in. At TANK New Media, we specialize in equipping your team with the tools, automation, and software needed to optimize your sales strategy. Whether it's integrating HubSpot Sales Hub, automating repetitive tasks, or improving sales enablement through better systems, we provide the resources that help your team perform better without needing extensive sales training.

By partnering with us, you’ll gain access to customized solutions that help you align your sales funnel with your pipeline, increase efficiency, and ultimately boost revenue. Schedule a consultation today to discover how our expertise in sales tools and automation can transform your sales process and drive predictable growth.

Don’t wait to optimize — let’s work together to unlock the full potential of your sales process. Let's get started!

GET STARTED

avatar

Krista

Co-founder & VP, Client Services at TANK New Media.

RELATED ARTICLES