Terms

Opportunity Management

Opportunity management is a sales process for tracking, organizing, and managing qualified deals within your sales pipeline to prioritize those most likely to close. By analyzing customer data and interactions, this practice allows sales teams to focus their resources on high-value prospects, personalize their approach, and ultimately increase conversion rates.

Key Components of Opportunity Management

Effective opportunity management is built on a foundation of several interconnected components. These elements work together to create a structured, data-driven approach to moving deals through the sales pipeline. The core components include:

  • Identification: Recognizing and qualifying leads that have a high probability of becoming customers.
  • Tracking: Monitoring each opportunity's progress through the defined stages of the sales pipeline.
  • Analysis: Evaluating customer data to prioritize deals, understand needs, and forecast potential revenue.
  • Strategy: Creating tailored plans to nurture each opportunity and guide it toward a successful close.
  • Process: Establishing a clear, repeatable workflow for managing deals from creation to completion.

Best Practices for Effective Opportunity Management

To maximize success, adopting key best practices for managing sales opportunities is crucial. These strategies streamline your process, ensuring valuable deals don't slip through the cracks and that your team's efforts are focused where they matter most.

  • Prioritize: Focus efforts on the most promising deals using data-driven insights.
  • Standardize: Establish a clear, repeatable sales process with well-defined stages.
  • Analyze: Regularly track key metrics to monitor pipeline health and refine your strategy.
  • Automate: Leverage technology to handle repetitive tasks and accelerate the sales cycle.

Opportunity Management vs. Opportunity Assessment

While related, opportunity management and assessment serve distinct functions within a business strategy.

  • Management: This is a sales-focused process for tracking and nurturing qualified deals through the pipeline. It excels at optimizing resources and increasing conversions but can be complex to implement. It's ideal for mid-market and enterprise companies looking to streamline and scale their existing sales operations for maximum efficiency.
  • Assessment: This is a strategic evaluation to determine the viability and potential of a new business idea or market before it becomes a formal opportunity. It helps mitigate risk by vetting concepts early but is less focused on immediate sales. This is often used by enterprises exploring new ventures or products.

Tools and Software for Opportunity Management

Most businesses use Customer Relationship Management (CRM) software to handle opportunity management. These platforms digitize the sales pipeline, making it easier to track deals, automate repetitive tasks, and reduce manual errors.

  • Pros: These tools boost efficiency by automating tasks, providing a central database for customer information, and offering clear visibility into the sales pipeline. This helps teams prioritize high-value deals and improve forecasting accuracy.
  • Cons: Implementation can be complex, requiring proper setup and user training to be effective. Without careful configuration, these systems can overwhelm teams with data or fail to align with specific sales workflows.

Challenges and Solutions in Opportunity Management

Common hurdles include poor visibility into the sales pipeline and difficulty prioritizing high-value deals. Sales reps often struggle with manual data entry and tracking multiple conversations, causing opportunities to stall. Without a standardized process, teams risk disorganized workflows and lost revenue.

Implementing a CRM with opportunity management features is a key solution. This centralizes data, automates tasks, and provides clear pipeline tracking. By defining sales stages and using data for insights, teams can focus their efforts and create a repeatable process.

Frequently Asked Questions about Opportunity Management

How does opportunity management differ from lead management?

Lead management focuses on generating and qualifying new prospects. Opportunity management starts after a lead is qualified, concentrating on nurturing that specific deal through the sales pipeline to closure. It’s about managing the deal, not just the initial contact.

When should a company start using opportunity management?

A company should implement it once there is a consistent flow of qualified leads and a defined sales process. It’s most effective when scaling sales operations and aiming to improve closing rates, rather than just generating initial interest.

Is opportunity management only for large enterprises?

Not at all. While the tools may differ, the core principles of tracking, prioritizing, and nurturing deals are vital for businesses of any size. It helps small teams focus limited resources on the most promising prospects for sustainable growth.

Other terms

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Average Revenue per User

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Email Marketing

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Sales Director

A Sales Director leads a sales team, develops strategies, and is responsible for meeting a company's revenue targets.

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CPQ software

CPQ (Configure, Price, Quote) software is a sales tool for creating accurate, configurable quotes for complex products and services.

CPQ software

CRM Analytics

CRM analytics is the process of analyzing data from your CRM to uncover insights that help you better understand and serve your customers.

CRM Analytics

Objection Handling

Objection handling is the process of responding to a prospect's concerns or hesitations about a product or service to move a deal forward.

Objection Handling

B2B Intent Data

Learn about B2B intent data, including how B2B intent data enhances sales strategies, sources of B2B intent data, leveraging B2B intent data for competitiveness.

B2B Intent Data

Remote Sales

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Remote Sales

Open Rate

The open rate is the percentage of recipients who opened an email. It's a primary indicator of a subject line's effectiveness.

Open Rate

Lead Velocity Rate

Lead Velocity Rate (LVR) is the growth rate of your qualified leads, measured month-over-month. It's a key indicator of future revenue.

Lead Velocity Rate

Average Revenue per Account

Average Revenue per Account (ARPA) is the average revenue generated from each customer account, usually measured on a monthly or annual basis.

Average Revenue per Account

Data Pipelines

A data pipeline is a set of automated processes that move raw data from various sources to a destination for storage and analysis.

Data Pipelines

Funnel Optimization

Funnel optimization is the process of improving each stage of the customer journey to maximize conversions and drive revenue growth.

Funnel Optimization

Regression Analysis

Regression analysis is a statistical method for estimating the relationships between a dependent variable and one or more independent variables.

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Sales Compensation

Sales compensation is the total pay a salesperson receives, including salary, commissions, and bonuses, structured to motivate performance.

Sales Compensation

Content Delivery Network

A Content Delivery Network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location.

Content Delivery Network

Price Optimization

Price optimization is the process of finding the ideal price for a product or service to maximize profitability or other business objectives.

Price Optimization

OAuth

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OAuth

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

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Dynamic Data

Dynamic data is information that updates in real-time. Unlike static data, it reflects the most current state of information automatically.

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Sales Forecast Accuracy

Sales forecast accuracy is a key metric that compares your predicted sales revenue against the actual sales revenue you ultimately achieve.

Sales Forecast Accuracy

Account

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Account

Complex Sale

A complex sale features a long sales cycle, multiple stakeholders, and a high-value transaction, demanding a strategic, consultative approach.

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Inbound Lead Generation

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Data Hygiene

Data hygiene is the practice of ensuring your customer data is clean, accurate, and up-to-date by removing duplicates and correcting errors.

Data Hygiene

Hadoop

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Hadoop

Lead Magnet

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Lead Magnet

Contract Management

Contract management is the process of creating, executing, and analyzing contracts to maximize performance and minimize financial risk.

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Day Sales Outstanding

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Day Sales Outstanding

Challenger Sales

The Challenger Sales model is a methodology where reps teach prospects, tailor their pitch, and take control of the sales conversation.

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Net Promoter Score

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Net Promoter Score

Weighted Pipeline

A weighted pipeline forecasts sales revenue by assigning a closing probability to each deal based on its stage in the sales funnel.

Weighted Pipeline

Marketing Operations

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Economic Order Quantity

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Economic Order Quantity

Private Labeling

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Private Labeling

Sales Intelligence

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Sales Intelligence

Bad Leads

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Bad Leads

Targeted Marketing

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Sales Territory Management

Sales territory management is the process of grouping accounts into territories and assigning them to reps to maximize sales and market coverage.

Sales Territory Management

Data-Driven Lead Generation

Data-driven lead generation is the process of using data insights to identify, attract, and convert high-quality leads into customers.

Data-Driven Lead Generation

Product Champion

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Sales Coach

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Predictive Lead Generation

Predictive lead generation uses data and AI to find prospects most likely to buy, helping teams focus their efforts on high-value leads.

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AI-Powered Marketing

AI marketing uses artificial intelligence to analyze data, automate decisions, and deliver personalized customer experiences at scale.

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Landing Pages

A landing page is a standalone web page created for a marketing campaign. It’s where a visitor “lands” after clicking an ad or email link.

Landing Pages

Mobile Compatibility

Mobile compatibility ensures your site or app works flawlessly on mobile devices, like smartphones and tablets, for a seamless user experience.

Mobile Compatibility

Account-Based Selling

Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.

Account-Based Selling

Omnichannel Marketing

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Amortization

Amortization is the process of spreading out a loan or the cost of an intangible asset over a specific period for accounting and tax purposes.

Amortization

Value Chain

A value chain is the series of business activities required to create and deliver a product or service, from conception to the final customer.

Value Chain

Sales Funnel

A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.

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Business Development Representative

Learn about business development representative, including skills and qualifications for BDRs, & roles and responsibilities of a BDR.

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Marketing Play

A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.

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Incident Response

Incident response is an organization's systematic approach to managing and mitigating the aftermath of a security breach or cyberattack.

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Dark Funnel

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Sales Dashboard

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Consultative Sales

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Email Personalization

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LinkedIn Sales Navigator

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Buyer Intent

Learn about buyer intent, including understanding buyer intent signals, strategies to capture buyer intent, & buyer intent vs. customer interest.

Buyer Intent

Target Buying Stage

The Target Buying Stage identifies a prospect's position in the buying journey, from initial awareness to the final decision to purchase.

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Customer Segmentation

Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.

Customer Segmentation

Consumer Buying Behavior

Consumer buying behavior is the study of how individuals select, buy, and use products and services to satisfy their needs and desires.

Consumer Buying Behavior

Service Level Agreement

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Service Level Agreement

Closed Question

A closed question is a type of query that elicits a simple, often one-word answer like 'yes' or 'no,' or a specific, factual response.

Closed Question

Sales Enablement Technology

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Cost Per Impression

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Cost Per Impression

Objection Handling in Sales

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Competitive Intelligence (CI)

Competitive intelligence (CI) is the ethical gathering and analysis of market data to inform strategic business decisions and gain an advantage.

Competitive Intelligence (CI)

Sales Pipeline

A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.

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Stress Testing

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Batch Processing

Learn about batch processing, including benefits of batch processing, best practices for implementation, & common use cases.

Batch Processing

Microservices

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Microservices

Closing Ratio

Closing ratio is a key sales metric that shows the percentage of leads or proposals that result in a successful sale.

Closing Ratio

Infrastructure as a Service

Infrastructure as a Service (IaaS) is a cloud computing service that offers essential compute, storage, and networking resources on-demand.

Infrastructure as a Service

Customer Buying Signals

Customer buying signals are the actions, behaviors, or statements a prospect makes that indicate they are moving towards a purchase decision.

Customer Buying Signals

Customer Data Analysis

Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.

Customer Data Analysis

Intent-Based Leads

Intent-based leads are potential customers whose online actions—like searches or content engagement—signal a clear interest in buying a solution.

Intent-Based Leads

Sales Pipeline Management

Sales pipeline management is the process of organizing, tracking, and managing potential deals through every stage of your sales funnel.

Sales Pipeline Management

Firewall

A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.

Firewall

Trade Shows

Trade shows are events where companies in a specific industry showcase their latest products and services to find new customers and partners.

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Sales Methodology

A sales methodology is the framework that guides how your sales team approaches the entire sales process, from prospecting to closing deals.

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Sales Script

A sales script is a pre-written guide of talking points that helps salespeople navigate conversations with potential customers.

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Trigger Marketing

Trigger marketing uses customer actions or events to automatically send highly relevant, personalized messages at the perfect moment.

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Video Prospecting

Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.

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Real-time Data Processing

Real-time data processing is the method of analyzing data the instant it's generated, enabling immediate actions and decision-making.

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User Interface

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SEM

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Smarketing

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Omnichannel Sales

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Cybersecurity

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Cybersecurity

LPI

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Workflow Automation

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Lead Response Time

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Chatbots

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Chatbots

X-Sell

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Sales Funnel Metrics

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Warm Outbound

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Demographic Segmentation in Marketing

Demographic segmentation divides a market into groups based on traits like age, gender, and income, allowing for more targeted marketing efforts.

Demographic Segmentation in Marketing

Win/Loss Analysis

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Win/Loss Analysis