Sales Funnel Vs. Sales Pipeline in Online Marketing: What’s The Difference

Sales funnels and sales pipelines confuse LOTS of business owners.

I get it.

They sound similar but work completely differently. Using the wrong tool costs money and wastes time.

In this article, I’ll show you exactly how sales funnels in digital marketing differ from sales pipelines. (I’m NOT talking about traditional selling funnels – that’s something else entirely.)

By understanding both a sales pipeline and a sales funnel, you can integrate these tools to gain insights into evolving sales strategies, improving conversion rates, and refining the entire sales process to optimize performance.

Here’s what you’ll learn:

• Why sales funnels track CUSTOMER journeys while pipelines track YOUR sales process
• When to use each tool for maximum profit
• How to make them work together to grow your business

By the end, you’ll know exactly which tool fits your business needs.

Quick Comparison Table Of Sales Funnel Vs. Sales Pipeline

Let’s compare sales funnels and pipelines side-by-side.

This quick comparison table shows their key differences. Use it to pick the right tool for your business success.

Both systems complement each other. The funnel captures leads and the pipeline helps close them. Many successful businesses use both together as part of their sales strategy.

What is A Sales Funnel?

A sales funnel maps your customer’s buying journey from first seeing your business to making a purchase.

It’s called a “funnel” because it starts WIDE at the top with many people discovering you. Then it gets NARROW at the bottom where fewer people buy.

Just like pouring water through a real funnel – not all of it reaches the end.

The sales funnel stages typically include:

1. Awareness: Potential customers first learn about your business
2. Interest: They show interest in your products or services
3. Evaluation: When they compare you with alternatives
4. Engagement: When they interact with your content or offerings
5. Action: They make a purchase. You start getting your revenue generated at this stage.
6. Customer Retention: When they become repeat customers

Each part shows what your customer is thinking. Marketing teams use funnels to find where people drop off and fix those leaks.

In real digital marketing, a sales funnel might look like this:

Facebook ads → Landing page with free guide → Email sequences → Sales page → Checkout → Upsell/Downsell → ascend the Value Ladder.

This approach to marketing tactics helps you build trust and turn strangers into paying customers.

📖 Read more: What Is A Sales Funnel? Everything You Should Know 

What Is A Sales Pipeline?

A sales pipeline (or pipeline) tracks the progress of individual sales opportunities as they move through your sales process.

It’s the path from first contact to closing the sale.

Unlike a funnel, a pipeline DOESN’T get narrower. It’s a linear progression where each stage represents a step in your year’s sales cycle process.

The sales pipeline has various stages and typically includes:

1. Prospecting/Lead Generation: Finding potential customers
2. Lead Qualification: Determining if prospects are good fits
3. Demo Or Meeting: First meaningful conversation with prospects
4. Proposal: Presenting your offering and pricing
5. Negotiation: Working through objections and details
6. Closing: Securing the sale
7. Post-purchase: Delivery and follow-up

Sales teams use pipelines to see where each deal stands, forecast revenue, and identify bottlenecks in their process.

In practice, a sales pipeline report might look like a CRM dashboard showing all active deals organized by stage. Each deal has information like:

• Deal value
• Probability of closing
• Days in current stage
• Assigned sales rep
• Next action required

This gives sales leaders visibility into expected revenue and helps reps prioritize which deals need attention.

6 Key Differences Between Sales Pipeline Vs. Sales Funnel

Pipelines vs sales funnels play distinct roles in the sales process: the sales pipeline focuses on managing internal sales activities, while the sales funnel is centered around understanding the customer journey.

Understanding these six key differences will help you implement both systems correctly and avoid costly mistakes in your sales strategy.

Many businesses fail because they use a funnel when they need a pipeline (or the other way around). Each tool works best for specific jobs in your business.

Let’s look at what makes them different and how this affects your daily work.

1. Perspective: Customer Journey vs Sales Process

The BIGGEST difference is how they see your business.

Sales funnels show the CUSTOMER’S journey. They track what buyers think and feel before buying. This helps you create marketing that matches where customers are in their thinking.

Sales pipelines show YOUR sales process. They track the steps your team takes to close deals. This helps your sales team stay organized and move deals forward.

For example, when someone downloads your free guide, a funnel sees this as moving from “awareness” to “interest.” A pipeline doesn’t even notice until they become a real sales lead.

This is why marketing teams use funnels while sales teams use pipelines.

2. Focus: Conversion Optimization vs Deal Management

Sales funnels focus on conversion optimization – getting more people to take action. This means:

• Testing different ad messages
• Improving the landing page’s sales copy
• Creating better lead magnets
• Writing emails that get clicked
• Making checkout easier

Sales pipelines focus on deal management – organizing and advancing specific sales opportunities. This means:

• Prioritizing which leads to call first
• Planning follow-up strategies for specific deals
• Handling customer questions
• Tracking deal values and close probabilities
• Allocating resources to high-potential opportunities

A marketing team might spend hours testing a form to get 2% more signups, while a sales team might research a specific prospect’s needs before a big call.

3. Structure: Narrowing vs Linear Progression

Sales funnels get NARROWER as fewer people move to each next step. This shape shows that not everyone who finds your business will buy.

A well-optimized funnel might convert:

• 20% of website visitors to email subscribers
• 10% of email subscribers to product buyers
• 5% of buyers to high-ticket customers

The pipeline structure is linear, with deals moving horizontally from one stage to the next stage. While deals can drop out if lost, the pipeline doesn’t naturally narrow like a funnel.

This changes how you look at reports. Funnel reports show percentages between different stages. Pipeline reports show the number and value of deals at each stage.

4. Purpose: Marketing Strategy vs Sales Forecasting

Sales funnels help with marketing plans. They answer questions like:

• Where are we losing customers?
• Which traffic sources bring the best leads?
• What content helps people buy?
• How can we get more conversions?

Sales pipelines help predict sales. They answer questions like:

• How much money will we make this month?
• Which deals need attention now?
• Will we hit our sales targets?
• Where do deals get stuck?

A marketing director might use funnel data to decide which channels deserve more budget, while a sales director uses pipeline data to predict quarterly revenue and coach reps on closing techniques. Aligning marketing and sales efforts is crucial to enhance lead generation and conversion, ensuring both teams work together effectively.

5. Timeframe: Long-term Relationship vs Current Sales Cycle

Sales funnels often track the long-term relationship with prospects and customers. This includes:

• First finding you through ads or content
• Lead nurturing over weeks or months
• Making a first purchase
• Upsells and cross-sells
• Repeat purchases
• Advocacy and referrals

Some customer journeys might take months before they buy, especially for expensive products.

Sales pipelines focus on the CURRENT sales cycle – the active process of working deals toward closure. While pipelines can include after-sale steps, they mainly track the path to the first purchase.

This affects how you measure success. Funnel metrics might include customer lifetime value over years, while pipeline metrics focus on current-quarter close rates.

6. Key Metrics Tracked

Funnels and pipelines use totally different numbers to measure success.

Sales Funnel Metrics:

• Visitor-to-lead conversion rate
• Lead-to-customer conversion rate
• Cost per lead (CPL)
• Cost per acquisition (CPA)
• Traffic sources and their quality
• Email open and click rates
• Average time in funnel
• Landing page bounce rates
• Cart abandonment rate

Sales Pipeline Metrics:

• Number of deals in pipeline
• Total pipeline value
• Win rate (percentage of deals closed)
• Average deal size
• Sales velocity (speed deals move through pipeline)
• Average sale cycle length
• Conversion rate between pipeline stages
• Deals stalled by stage
• Sales forecasting accuracy

These metrics require different tracking tools. Sales funnel reports track conversion rates and provide insights into lead generation effectiveness, while pipeline metrics typically come from CRM systems and sales reports.

Sales Pipeline Vs. Sales Funnel Examples

Let me show you how these systems work in real businesses. These examples will help you see which one fits YOUR company best.

Example 1: How an eCommerce Business Uses a Sales Funnel

A fitness equipment company sells workout gear online.

Their sales funnel starts with Google Ads, Facebook Ads, and Instagram ads showing people doing workouts. These ads send people to their website. When someone looks but doesn’t buy, a popup offers 10% off for joining their email list.

New subscribers get 5 emails with workout tips and product suggestions. They also see ads for products they looked at but didn’t buy.

Their funnel shows:

• 5% of ad clicks turn into sales
• 20% of visitors sign up for emails
• 15% of email subscribers buy within a month
• 10% of buyers purchase again within 6 months

By tracking these numbers, they found that email subscribers from Instagram spend the MOST money over time. So they put more money into Instagram ads.

Example 2: How a B2B Company Uses a Sales Pipeline

A software company sells business tools to other companies.

Their sales pipeline tracks each potential deal from start to finish. When someone fills out a “Request Demo” form, they enter the pipeline as a new opportunity.

The sales team checks if these leads have the right company size and budget. Good leads get a personal email and phone call to schedule a demo.

After the demo, interested prospects get a custom proposal. The sales rep then follows up a sales meeting to answer questions and talk about pricing.

Their pipeline dashboard shows:

• 45 active opportunities worth $380,000
• 12 deals in the proposal stage
• 8 deals likely to close this month
• Average 35 days from demo to closing

The sales manager uses this data for team meetings. They focus on deals stuck in the proposal stage and work harder on the biggest opportunities.

Example 3: Combining Both in a Service-Based Business

A wedding photography business uses BOTH systems together.

Their sales funnel attracting leads through:

• Facebook ads showing beautiful wedding photos
• A free guide called “10 Tips for Perfect Wedding Photos”
• Email follow-ups with sample portfolios
• Ads that follow people who downloaded the guide

When someone clicks “Book a Consultation,” they move from the marketing funnel to the sales pipeline.

In the final stage of the buying process, the team tracks:

• Phone consultations scheduled
• Meetings with the photographer
• Custom package proposals sent
• Contracts signed
• Deposits received

This combined approach lets them measure their marketing efforts AND sales success. They know which ads bring the most bookings AND which sales techniques close the most deals.

The marketing team runs the funnel. The photographers run the pipeline. But they meet weekly to make sure both systems work together.

Pros and Cons of Sales Pipeline And Sales Funnel

Both systems have good and bad points. Let’s see which one fits YOUR business better.

Sales Funnel Pros

• Better for warming up new leads: Sales funnels turn strangers into interested buyers over time. They guide people through a journey, not just a quick sale.
• Shows where customers get stuck: You can see exactly where people drop off or engage most. This gives you CLEAR DATA on what works and what doesn’t.
• Connects marketing to sales: Funnels bridge your ads and your sales results. This helps both teams see how they affect each other.
• Grows easily: Once you build a funnel that works, you can often make it bigger by spending more on ads or creating more content.

Sales Funnel Cons

• Can’t track specific deals: Funnels show big-picture movement but can’t tell you about specific deals with named companies.
• Too focused on marketing sometimes: Funnels can pay too much attention to getting leads while ignoring actual sales results.
• Can get complex: Big funnels with many entry points can become hard to manage and measure correctly.
• Needs lots of content: Keeping people moving through your funnel means creating new content regularly. This takes time and money.

Sales Pipeline Pros

• Shows future money clearly: Pipelines give you a real-time view of how much money you’ll likely make from deals in progress.
• Makes teams more responsible: Each deal has an owner, making it easy to see who’s in charge of what and track how each person is doing.
• Helps close more deals: By showing where deals get stuck, pipelines help sales teams fix problem areas and close more sales.
• Custom approach for each deal: Pipelines let you create special plans for each opportunity instead of using the same message for everyone.

Sales Pipeline Cons

• Misses early customer interest: Pipelines usually don’t capture the first steps people take before becoming real leads.
• Can make sales teams too pushy: Teams focused only on pipeline might push for quick sales without building trust first.
• Harder to grow quickly: Pipeline work often needs direct human contact, making it harder to grow fast.
• Less info on how customers behave: Pipelines track sales activities but miss data on how customers interact with your content.

When To Use Sales Funnel And When To Use Sales Pipeline?

Knowing which tool fits your situation saves you time and makes you more money. Here’s a simple guide for different business needs.

When a Sales Funnel Works Best

New product launches. Funnels work great when introducing something new. They guide people from first hearing about your product to buying it.

For example, a skincare brand with a new anti-aging cream would use a funnel. It starts with articles about skin aging, shows before/after photos, includes customer reviews, and finally offers the product for sale.

Consumer businesses. If you sell directly to regular people, especially cheaper items, funnels help move LOTS of people toward buying.

Online stores, subscription boxes, and digital products do great with funnels. They turn browsers into buyers efficiently.

Content marketing businesses. If you use blogs, videos, or podcasts to get customers, funnels help turn readers into buyers.

A business coach might use blog posts to attract readers, free workshops to get email addresses, and email series to sell coaching programs.

Getting repeat customers. Funnels work well for getting existing customers to buy MORE from you.

Software companies often use funnels to move free users to paid plans by showing extra value at each step.

When a Sales Pipeline Works Best

B2B sales: Companies selling to other businesses need pipelines to track complex deals with multiple decision-makers.

A marketing agency selling to big companies needs a pipeline. It tracks sales proposals, meetings, and final negotiations with each potential client.

BIG, expensive sales: When each deal is worth thousands or millions, you need detailed pipeline tracking.

Real estate companies track each property deal through specific stages. These often take months from first interest to final closing.

Sales professionals: If several salespeople handle different accounts, pipelines make management MUCH easier.

Sales managers use pipeline data to see which salespeople need help with specific stages and what training to provide.

Predicting future sales. When you need to know next quarter’s income with accuracy, pipelines give you solid data.

Investors and business partners often want the kind of precise predictions that only come from a well-maintained pipeline.

The BEST Approach: Using Both Together

Effective sales strategies involve integrating both a sales pipeline and a sales funnel to enhance sales performance.

For most businesses, using BOTH systems creates the best results.

Your sales funnel captures and warms up leads until they’re ready for personal attention. Then your sales pipeline takes over to track those good opportunities to the finish line.

This combined approach connects your marketing and sales goals into one smooth system.

A software company might use blog posts and automated emails (funnel) to get leads. When someone asks for a demo, they enter the sales pipeline. The sales pipeline management tracks them through demo, proposal, and closing stages.

Pro tip:

Not sure which tool to use right now?

If you can’t get ENOUGH LEADS, start with a sales funnel first. This fills the top of your business with potential customers.

If you already have leads but struggle to CLOSE DEALS, focus on your sales pipeline. This helps you turn those leads into money more efficiently.

For solo business owners or small teams: Start with the system that fixes your BIGGEST problem first. Then add the other one when you have more time and money.

How Sales Pipeline And Sales Funnel Work Together

The real magic happens when you connect both systems. Smart businesses don’t choose just one – they use both.

Think of the sales funnel as your LEAD MACHINE. It attracts people, builds interest, and finds good prospects.

The sales pipeline is your DEAL-CLOSING SYSTEM. It tracks specific opportunities and turns them into customers.

When does a lead move from funnel to pipeline? When they’re ready for personal sales attention.

This team approach gives you marketing insights AND sales precision. Let’s see how to make them work together.

Getting Sales and Marketing Teams on the Same Page

Marketing and sales teams often fight with each other. Marketing thinks sales ignores their leads. Sales thinks marketing sends them bad leads.

Sound familiar? This problem wastes money and loses customers.

Here’s how to get both teams working together:

1. Set shared goals. Both teams should be measured on REVENUE, not just leads or calls. When everyone has the same target, they work together better.
2. Define what makes a qualified lead. Marketing should know exactly what sales needs before sending leads their way.
3. Hold regular meetings where both teams review results together. Weekly check-ins help spot problems early and celebrate wins.
4. Use technology that connects your marketing and sales systems. Your email platform should talk to your CRM so data flows between them automatically.
5. Create a feedback loop where sales tells marketing which leads convert best. This helps marketing make more of those high-quality leads.

Linking Customer Actions to Sales Steps

Every customer action should trigger the right sales response. This turns random activities into a smooth process.

Start by mapping what happens at each stage:

• When someone downloads your guide (Awareness stage in funnel), your system should tag them as a new lead (Prospecting stage in pipeline).
• If they watch your demo video (Interest stage), they should be assigned to a sales rep for follow-up (Qualification stage).
• When they ask for pricing (Evaluation stage), they should move to the Proposal stage in your pipeline.

Create trigger events that automatically move leads between systems. For example, if someone visits your pricing page three times, your CRM should alert a sales rep to call them.

Use scoring systems that add points for valuable actions. A lead might get 5 points for downloading a guide, 10 for watching a webinar, and 20 for visiting your pricing page. When they reach 50 points, they automatically enter your sales pipeline.

When Marketing Hands Off Leads to Sales

The handoff from marketing to sales is where many leads get lost. You need a clear process for this critical moment.

• Define what “sales-ready” means for your business: Is it when someone books a call? Requests a quote? Spends time on your pricing page?
• Create a lead scoring system that measures both fit (right industry, company size, job title) and engagement (actions taken, content consumed).
• Automate the handoff when possible: Your marketing system should alert sales and transfer lead data when someone reaches the qualifying score.
• Provide complete context to sales: Don’t just send a name and email. Include what content they’ve viewed, questions they’ve asked, and problems they’ve mentioned.
• Set a time limit for sales to follow up: Following up within 5 minutes increases conversion rates by 400% compared to waiting 30 minutes.
• Create a process for rejected leads: If sales says a lead isn’t ready, send them back to marketing for more nurturing. Don’t drop them entirely.
• Track handoff effectiveness by measuring how many marketing leads turn into sales opportunities. This helps both teams improve.

Connecting Your Tools for Smoother Management

The right technology makes integration MUCH easier. Without connected tools, you’ll waste time on manual data entry and miss important signals.

Start with a CRM that supports both marketing and sales. Popular options include Clickfunnels, Gohighlevel, Keap, and Hubspot. These track both funnel stages and pipeline progress.

Use marketing automation that connects with your CRM. Tools like ActiveCampaign, Mailchimp, and Getresponse can sync lead data with your sales system.

Set up two-way data sync between systems. When sales updates a contact, marketing should see it. When marketing adds a new lead, sales should know right away.

Create unified reporting that shows the whole customer journey. You should see how many website visitors become leads, how many leads become opportunities, and how many opportunities close.

For small businesses, all-in-one platforms often work best. They might not have every feature, but the built-in connection saves time and prevents data problems.

Make sure your tools can track the source of each lead throughout the process. Knowing which marketing channels produce the best sales helps you spend money wisely.

Sales Funnel Vs. Sales Pipeline F.A.Q

Here are answers to business owners’ most common questions about sales funnels and pipelines.

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