What Statuses to Use for Sales in CRM?

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Unlocking the Power of CRM to Drive Sales

Welcome to this comprehensive guide on what statuses to use for sales in CRM. In today’s digital age, Customer Relationship Management (CRM) systems have become a necessity for businesses that want to thrive and succeed. A CRM system is a powerful tool that helps you manage customer relationships and drive sales. By providing you with valuable insight into customer behavior and preferences, you can create targeted campaigns and offer personalized experiences that convert leads into loyal customers.

However, to get the most out of your CRM system, you need to have the right statuses in place. A status is a label you assign to a lead or opportunity in your CRM system to keep track of where they are in the sales cycle. By using the right statuses, you can streamline your sales process and increase your conversion rates.

Why is Choosing the Right Status Important?

Choosing the right status is crucial because it helps you understand where a lead or opportunity is in the sales cycle. Without the right status, you may waste time pursuing leads that are not yet ready to buy, or miss out on opportunities that are close to closing. The right status will help you prioritize your sales efforts and focus on leads that are most likely to convert.

Furthermore, by using consistent statuses across your team, you can ensure that everyone is on the same page and that there is no confusion about where leads and opportunities stand in the sales cycle. This leads to a more efficient and effective sales process, which ultimately leads to more sales and revenue for your business.

Choosing the Right Statuses for Your Sales Process

Every business has its own unique sales process, which means that there is no one-size-fits-all solution when it comes to choosing the right statuses for your CRM system. However, there are some common statuses that most businesses use to track their leads and opportunities. These include:

Status	Description
New Lead	A new contact or potential customer that you have not yet engaged with
Contacted	You have reached out to the lead and made initial contact
Qualified	The lead has expressed interest and is a good fit for your product or service
Proposal Sent	You have sent a proposal or quote to the lead
Negotiating	You are in negotiations with the lead on pricing or other terms
Closed Won	The lead has agreed to purchase your product or service
Closed Lost	The lead has decided not to purchase your product or service

New Lead

The first status in your sales process should be “New Lead.” This status represents a new contact or potential customer that you have not yet engaged with. This could be a lead that you have collected through your website or social media channels, or a referral from an existing customer.

Your goal at this stage is to make initial contact with the lead and start building a relationship. This could be through email, phone, or social media. Once you have made initial contact, you can move the lead to the next status.

Contacted

The “Contacted” status is used when you have reached out to the lead and made initial contact. This could be through email, phone, or social media. At this stage, you want to learn more about the lead and their needs to determine if they are a good fit for your product or service.

If the lead is not interested or not a good fit, you can move them to the “Closed Lost” status. If the lead is interested and a good fit, you can move them to the next status.

Qualified

The “Qualified” status is used when the lead has expressed interest and is a good fit for your product or service. At this stage, you want to gather more information about the lead and their needs to determine if they are a viable opportunity.

This could involve scheduling a demo or discovery call to learn more about the lead’s needs and pain points. If the lead is not a good fit, you can move them to the “Closed Lost” status. If the lead is a good fit, you can move them to the next status.

Proposal Sent

The “Proposal Sent” status is used when you have sent a proposal or quote to the lead. At this stage, you want to follow up with the lead to ensure they received the proposal and answer any questions they may have. You can also use this stage to provide additional information or address any objections the lead may have.

If the lead decides not to move forward, you can move them to the “Closed Lost” status. If the lead is interested in moving forward, you can move them to the next status.

Negotiating

The “Negotiating” status is used when you are in negotiations with the lead on pricing or other terms. This could involve discussing payment terms, delivery timelines, or any other details related to the sale.

If the negotiations are successful, you can move the lead to the “Closed Won” status. If the negotiations are unsuccessful, you can move the lead to the “Closed Lost” status.

Closed Won

The “Closed Won” status is used when the lead has agreed to purchase your product or service. At this stage, you want to ensure that the lead is happy with their decision and provide any necessary onboarding or support.

It’s important to continue building the relationship with the customer and provide excellent customer service to ensure that they become a loyal customer and advocate for your business.

Closed Lost

The “Closed Lost” status is used when the lead has decided not to purchase your product or service. At this stage, you want to understand why they decided not to move forward and if there is anything you can do to improve your sales process or product/service offering.

You can also use this stage to ask for feedback or referrals to other potential customers. It’s important to continue building relationships with leads, even if they don’t become customers.

13 FAQs About What Statuses to Use for Sales in CRM

1. Why is it important to use consistent statuses across your team?

Using consistent statuses across your team ensures that everyone is on the same page and that there is no confusion about where leads and opportunities stand in the sales cycle. This leads to a more efficient and effective sales process, which ultimately leads to more sales and revenue for your business.

2. What if my business has a unique sales process?

3. How do I know what status to use for each lead or opportunity?

The status you use for each lead or opportunity will depend on where they are in the sales cycle. You should choose a status that accurately reflects the lead’s or opportunity’s current stage in the process.

4. Can I create custom statuses in my CRM system?

Yes, most CRM systems allow you to create custom statuses to fit your unique sales process.

5. How often should I update the status of a lead or opportunity?

You should update the status of a lead or opportunity whenever their status changes in the sales cycle. This ensures that you have an accurate view of where each lead or opportunity stands in the process.

6. Can I automate the process of updating statuses in my CRM system?

Yes, many CRM systems allow you to set up automation rules to update the status of leads or opportunities based on certain triggers or actions.

7. How do I ensure that my team is using the correct statuses in our CRM system?

You can ensure that your team is using the correct statuses by providing training and guidelines on how to use the CRM system. You can also set up workflows and automation rules to ensure that leads and opportunities are assigned the correct statuses automatically.

8. What should I do if a lead or opportunity gets stuck in a certain status?

If a lead or opportunity gets stuck in a certain status, you should review their information to determine why they are not progressing in the sales cycle. You may need to reach out to the lead or adjust your sales tactics to move them to the next stage.

9. How do I use statuses to prioritize my sales efforts?

You can use statuses to prioritize your sales efforts by focusing on leads and opportunities that are closest to closing. By identifying leads or opportunities that are in the negotiation or proposal stage, you can allocate more resources to these leads to ensure that they convert.

10. How do I measure the effectiveness of my sales process using statuses?

You can measure the effectiveness of your sales process using statuses by tracking how long it takes for leads to progress through each stage of the sales cycle. By analyzing this data, you can identify areas where your sales process could be improved and make changes to increase conversion rates.

11. How can I use statuses to create targeted campaigns?

You can use statuses to create targeted campaigns by identifying leads or opportunities that are in a particular stage of the sales cycle. For example, you could create a campaign to target leads that are in the “Qualified” stage, offering them more information or a free trial of your product or service.

12. Can I use different statuses for different products or services?

Yes, you can use different statuses for different products or services if your sales process for each product or service is different. However, you should ensure that each status accurately reflects where the lead or opportunity stands in the sales cycle.

13. How do I ensure that my CRM system is up-to-date and accurate?

You can ensure that your CRM system is up-to-date and accurate by regularly reviewing and updating the status of leads and opportunities. You should also ensure that all team members are using the same statuses and that any changes to the sales process are reflected in the CRM system.

Conclusion

Choosing the right statuses for your CRM system is crucial for driving sales and growing your business. By using consistent and accurate statuses, you can streamline your sales process and increase your conversion rates.

Remember to choose statuses that accurately reflect where leads and opportunities are in the sales cycle, and to update these statuses regularly to ensure that your CRM system is up-to-date and accurate. By doing so, you can turn leads into loyal customers and grow your business to new heights.

Closing Disclaimer

Although we have made every effort to ensure the accuracy and completeness of this guide, we cannot guarantee that all information is current or correct. This guide is for informational purposes only and should not be used as a substitute for professional advice. We are not responsible for any errors or omissions, or for any actions taken based on the information provided in this guide. Use this guide at your own risk.