Developing a Sales Playbook: Defining Entry and Exit Criteria for Each Stage of the Sales Cycle
Creating a well-structured playbook for an enterprise sales team involves more than just listing stages in the sales cycle—it requires clear, actionable criteria for entering and exiting each stage. This framework not only provides clarity for the sales team but also enables accurate forecasting and improved deal management. Below, I outline my approach and the key stages I’ve defined.
The Importance of Criteria
Establishing criteria for each stage of the sales cycle is critical for understanding what’s happening within the funnel. These criteria allow for better projection of deal progression and long-term planning. By focusing on both the pre-funnel and closing stages, you gain insight into:
- Where deals currently stand.
- How they’ve moved through the sales process.
- The trajectory from initial conversations—whether through outbound calls or emails—toward a close.
Stages of the Sales Cycle
Although every CRM may vary slightly in setup, the fundamental stages of the pipeline share commonalities. These stages are designed to ensure transparency and clarity around opportunities. Here’s how I structure the sales process:
1. Pre-Funnel
This stage is for prospects who have shown interest but have not yet scheduled a demo. At this point, the goal is to engage them further to move them into the funnel.
2. Meeting Booked
Once a demo is scheduled, the prospect transitions to this stage. The focus here is to prepare for the upcoming conversation, which may include a demonstration of the product or service.
3. Post-Demo: Active vs. Inactive Trial
After the demo, prospects fall into one of two categories:
- Active Trial: The prospect is actively reviewing or testing the product/service under a structured trial with clear success criteria. They have purchasing authority and are engaged in the process.
- Inactive Trial: The prospect is not actively evaluating the product or is not in a purchasing posture. These leads may require follow-up but are not considered for the current quarter’s pipeline.
4. Proposal Stage
To move into the proposal stage, the following must be established:
- Success criteria are agreed upon.
- Purchasing authority is identified.
- All stakeholders are involved and aligned.
At this stage, a technical win—confirming that the product meets the prospect’s requirements—becomes essential. The proposal includes pricing, timelines, and payment terms.
5. Negotiation
Negotiation begins once the proposal has been reviewed and initial buy-in has been achieved. Before entering this stage, legal and procurement contacts should be aligned, and all stakeholders should approve the product. A successful negotiation relies on:
- Finalizing contractual terms.
- Ensuring the technical win remains intact.
- Confirming the readiness of all decision-makers to proceed.
6. Close and Transition
To exit negotiation and close the deal:
- A signed contract is required.
- A success plan must be established, outlining how the product will deliver value to the customer.
- Alignment with customer success teams ensures a smooth transition to long-term support and growth.
The Role of the Sales Team
The movement of deals through these stages is the responsibility of the salesperson. However, the transition between stages must be based on defined criteria rather than gut feelings. Each stage should have clear, common-sense requirements that signal readiness to advance. This approach creates accountability and ensures data-driven decisions throughout the sales process.
Conclusion
A well-defined playbook provides clarity, consistency, and efficiency for the sales team. By specifying the entry and exit criteria for each stage, you can ensure that opportunities are managed effectively and that forecasts are based on reliable data. The key to success lies in aligning the team around these criteria, fostering a culture of transparency, and continuously refining the process based on feedback and results.
If you have a framework or approach that has worked well for your team, I’d love to hear about it—collaboration is key to building a robust sales process.