One of the most difficult jobs of any GTM leader is communicating your forecasted performance to partner teams. The questions are usually the same:

• “How confident are you in these numbers?”
• “What more can we be doing to accelerate this?”
• “Does this mean we no longer need to focus on x,y,z?”

Understanding and effectively communicating pipeline status to non-GTM (Go-to-Market) executives is crucial for the smooth operation and strategic alignment of any B2B SaaS company. These executives often include leaders from departments such as Finance, HR, and Product development, who might not be as familiar with the intricacies of sales pipelines. Sometimes this audience includes the CEO and COO. Maybe you’re lucky and these folks have a background in Sales and Marketing, and then again.. maybe you’re not. To foster better collaboration, improved decision-making, and faster growth – it’s essential to translate sales jargon into digestible insights that resonate with their areas of expertise.

The Importance of Communicating Pipeline Status

Why Pipeline Transparency Matters

It’s time consuming, and often difficult. Some leaders shy away from consistent updates, while excellent ones embrace it. Transparent and well-communicated sales pipeline is the backbone of strategic decision-making in any organization. Here’s why:

1. Informed Decision-Making: Non-GTM executives can make better decisions when they understand the sales pipeline’s health and forecast. For instance, finance can better allocate resources (or understand why you’ve made the “ask” that you did), and product teams can prioritize feature developments aligned with anticipated customer needs.
2. Cross-Functional Alignment: Synchronizing the efforts of various departments ensures that everyone is working towards the same goals. This alignment can drive efficiency and foster a culture of collaboration vs siloed prioritization.
3. Risk Mitigation: Identifying potential bottlenecks or downturns in the sales pipeline early allows for proactive measures, minimizing risks associated with unexpected revenue shortfalls. You don’t want to be the leader who ends the month/quarter/yr surprised that you missed your number.

Challenges in Communicating Pipeline Status

Once you’ve accepted the ‘why’, now you need to navigate through the various challenges that come up:

1. Complex Terminology: Sales pipelines often involve jargon and acronyms (ToFu, MQL, SQL, SAL, CR, MRR, NRR, TLDR [😁] etc etc) and metrics that may not be familiar to executives from other departments.
2. Different Priorities: Each department has its own set of priorities and KPIs. Aligning pipeline status with these varying priorities requires careful framing.
3. Data Overload: Presenting too much data can overwhelm non-GTM executives, leading to confusion rather than clarity. Trust me – confused business partners are ineffective business partners. While having a clear and consistent update is important, poor communication will lead to countless hours of follow up discussions and wasted energy. Do yourself a favor and be thoughtful about how you share the data.

Strategies for Effective Communication

Simplifying Sales Jargon

The first step in bridging the communication gap is simplifying sales jargon. Here’s how:

1. Use Analogies: Relate sales concepts to familiar scenarios. For example, compare the sales pipeline to a production line where each stage represents a step in manufacturing.
2. Define Key Terms: Create a glossary of common sales terms and share it with non-GTM executives. Include definitions for terms like “pipeline velocity,” “conversion rate,” and “deal stage.” Make sure everyone understands the definitions before you kick off your Pipeline Review process.
3. Visual Aids: Utilize charts, and graphs to visually represent pipeline data. Visual aids can help translate complex data into easily understandable formats, but just don’t rely on the image to tell the story for you. Point out the key pieces of information you want people to digest, and smooth out any erratic visuals (like line charts). People distract easi – squirrel!- ly.

Tailoring the Message

Customizing your communication to address the specific concerns and interests of each department can enhance understanding and engagement.

1. Finance: Focus on metrics like expected revenue, forecasted cash flow, and the impact of pipeline stages on financial planning. Highlight how pipeline health influences budget allocations and financial stability. Don’t surprise your partners on Finance. Ever.
2. HR: Discuss the implications of pipeline status on hiring needs, team workload, and training programs. Emphasize how sales performance might affect staffing decisions and resource planning. Use this as an opportunity to ask for more resources to solve for the various training gaps.
3. Product Development: Link pipeline insights to customer feedback and market demands. Show how the sales pipeline can inform product roadmap decisions and feature prioritization. Pipeline → VoC (Voice of the customer) is a secret unlock for revenue teams, use it!

Utilizing Technology

Leveraging technology can streamline the communication process and ensure that pipeline status is conveyed accurately and efficiently.

1. CRM Systems: Utilize CRM systems like Salesforce or HubSpot to generate automated reports and dashboards tailored for non-GTM executives. These tools can provide real-time updates and customized views of the sales pipeline. While these tools are great, remember… bad data in = bad data out. Before you solely rely on weighted averages or tech-calculated forecasts (like various revenue intelligence tools provide), make sure your teams are well trained on what’s expected of them as well. I’ve been through my fair share of poorly calculated forecasts and they are not fun…
2. Data Visualization Tools: Employ data visualization tools like Tableau or Power BI to create interactive and visually appealing presentations of pipeline data. These tools can help non-GTM executives explore the data at their own pace. Additionally, tools like Gong and Chorus will help you analyze when/where opportunities are going south. This information will help you address gaps in your process, coaching, and product.

Best Practices for Pipeline Communication

Regular Updates

Consistency is key when it comes to keeping non-GTM executives informed about the sales pipeline.

1. Scheduled Meetings: Hold regular meetings (e.g., bi-weekly or monthly) to review pipeline status. Ensure these meetings are structured and time-efficient, with a clear agenda and specific objectives.
2. Written Reports: Provide written reports that summarize pipeline status, key metrics, and actionable insights. These reports should be concise, focusing on the most critical information. Take advantage of a simple format:
   • Exec Summary – highlight the top 3-5 most important pieces of information (including the forecasted performance vs goal)
   • Action items – steps you and your teams are taking to close the gap, ensure you don’t miss the forecasted ‘hit’, or ways to outperform
   • Asks – Requests you have for your partner teams
   • Chart/Attached forecast file – links or excel file showing the details of your pipeline
3. Dashboards: Create and maintain real-time dashboards that executives can access anytime. Dashboards should be user-friendly and highlight key performance indicators (KPIs) relevant to each department. Again, remember that by sharing these dashboards, your teams must be consistently updating the CRM. If you’re not confident this is being done effectively – don’t share the real-time dashboard!

Fostering a Culture of Transparency

Building a culture of transparency can enhance trust and collaboration across the organization.

1. Open Communication: Encourage open communication between GTM and non-GTM teams. Promote a culture where questions are welcomed, and clarifications are readily provided.
2. Cross-Training: Implement cross-training programs to educate non-GTM executives about sales processes and pipeline management. This can help demystify sales concepts and foster empathy. It’s also a great way to give people on your team more visibility with other execs.
3. Feedback Loop: Establish a feedback loop where non-GTM executives can provide input on the pipeline communication process. Use this feedback to continuously improve the way pipeline status is conveyed.

Practical Tips for Communicating Pipeline Status

Crafting the Message

When crafting your message, consider the following tips:

1. Be Clear and Concise: Avoid unnecessary jargon and focus on the essentials. Use simple language to explain complex concepts.
2. Highlight What Matters: Emphasize the most critical metrics and trends. For instance, focus on significant changes in pipeline velocity or notable shifts in conversion rates.
3. Actionable Insights: Provide actionable insights that non-GTM executives can use to make informed decisions. Link pipeline status to specific actions or recommendations for each department.

Engaging Presentation Techniques

Making your presentation engaging can significantly improve understanding and retention.

1. Storytelling: Use storytelling techniques to convey pipeline status. Share real-life examples of deals in the pipeline, or case studies that illustrate key points.
2. Interactive Elements: Incorporate interactive elements like Q&A sessions or live demonstrations of data visualization tools. This can make the presentation more dynamic and engaging, and will ensure everyone is on the same page.
3. Personalization: Tailor your presentation to the interests and concerns of your audience. Highlight how pipeline status impacts their specific areas of responsibility.

Follow-Up and Continuous Improvement

Effective communication doesn’t end with the presentation. Follow-up and continuous improvement are essential.

1. Post-Presentation Summary: Provide a summary of the key points discussed during the review. This can be in the form of a written report or a recorded video.
2. Solicit Feedback: After the presentation, solicit feedback from non-GTM executives. Ask for their opinions on what was clear, what was confusing, and what could be improved.
3. Iterate and Improve: Use the feedback received to refine your communication approach. Continuously iterate and improve the way you convey pipeline status.

Case Studies: Effective Pipeline Communication

Case Study 1: A Mid-Market SaaS Company

Background: A mid-market SaaS company struggled with aligning its Finance, Executive, and Sales teams. The non-GTM teams often found sales pipeline reports confusing and difficult to interpret.

Solution: The company implemented a series of initiatives to improve pipeline communication:

• Simplified Reporting: Sales leaders worked with the finance team to create simplified reports that focused on key financial metrics, with easy to decipher ‘red’, ‘yellow’, and ‘green’ highlights.
• Regular Briefings: Weekly updates were established where sales leaders explained pipeline status and addressed any questions from the executive team. At the end of the month, sales leaders held an MBR (Monthly Business Review) where they analyzed the pipeline details, and shared both a post-mortem and plan for the upcoming month.
• Training Sessions: Cross-functional training sessions were held to educate the various teams on sales processes and terminology.

Outcome: Improved understanding and collaboration led to better resource allocation and financial planning. The finance team felt more confident in the accuracy of sales forecasts and made more informed (and sales friendly) budgeting decisions.

Case Study 2: A High-Growth SaaS Startup

Background: A high-growth SaaS startup faced challenges in communicating pipeline status to its product development team. The product team often felt disconnected from the sales process and lacked insight into customer needs.

Solution: The startup adopted several strategies to enhance pipeline communication:

• Integrated Dashboards: The sales team created integrated dashboards that linked sales pipeline data with customer feedback and product usage metrics.
• Collaborative Workshops: Regular workshops were held where sales and product teams collaborated to discuss pipeline status and its implications for product development.
• Feedback Loop: A ‘Voice of the Customer’ feedback loop was established, allowing the product team to provide input on the sales pipeline and suggest product improvements based on customer feedback.

Outcome: The enhanced communication led to a more customer-centric product development process. The product team gained valuable insights into customer needs and market demands, resulting in more targeted and successful product releases.

Wrap-Up

Effective communication of pipeline status to non-GTM executives is a critical aspect of fostering cross-functional alignment and informed decision-making in B2B SaaS companies. By simplifying sales jargon, tailoring messages to the interests of each department, leveraging technology, and employing best practices, you can bridge the gap between sales and other departments. This not only enhances collaboration but also drives overall business success. Remember, the key to successful communication lies in clarity, consistency, and a willingness to adapt and improve based on feedback. By mastering these strategies, you can ensure that your sales pipeline insights are not only understood but also acted upon by non-GTM executives, paving the way for a more cohesive and customer centric organization.

Want to learn more? DM on LinkedIn, or book a time to talk ‘live’!