What is the best way to develop a sales pipeline in investment banking?

1 Define your target market

The first step to develop a sales pipeline is to define your target market, which is the group of clients that you want to serve and that can benefit from your value proposition. You need to conduct market research and analysis to identify the size, characteristics, needs, and preferences of your target market. You also need to segment your target market into subgroups based on criteria such as industry, geography, size, growth, profitability, and risk profile. This will help you tailor your marketing and sales strategies to each segment and prioritize your efforts.

2 Generate leads

The second step to develop a sales pipeline is to generate leads, which are potential clients that have shown some interest in your services or have been referred to you by someone. You need to use various sources and methods to generate leads, such as referrals, networking, events, cold calling, email marketing, social media, and content marketing. You also need to track and measure the effectiveness of your lead generation activities and optimize them accordingly. You should aim to generate a sufficient number of leads to fill your sales pipeline and meet your revenue goals.

3 Qualify leads

The third step to develop a sales pipeline is to qualify leads, which means to assess their fit and readiness to buy your services. You need to use criteria such as budget, authority, need, and timing (BANT) to evaluate each lead and determine their level of interest, urgency, and decision-making power. You also need to use tools such as CRM software, scoring systems, and feedback forms to organize and rank your leads based on their qualification status. You should focus on the most qualified leads and discard or nurture the less qualified ones.

4 Pitch your services

The fourth step to develop a sales pipeline is to pitch your services, which means to present your value proposition and convince your prospects to hire you. You need to prepare and customize your pitch materials, such as pitch books, proposals, case studies, and testimonials, to showcase your expertise, experience, and differentiation. You also need to communicate and engage with your prospects through various channels, such as phone calls, emails, meetings, and presentations, to address their questions, objections, and concerns. You should aim to deliver a compelling and persuasive pitch that demonstrates your value and builds trust.

5 Negotiate and close deals

The fifth step to develop a sales pipeline is to negotiate and close deals, which means to finalize the terms and conditions of your service agreement and secure the commitment from your prospects. You need to negotiate effectively and ethically, taking into account your prospects' needs, expectations, and constraints, as well as your own goals, standards, and margins. You also need to follow up and confirm the details of the deal, such as scope, timeline, fees, and deliverables, and obtain the necessary signatures and approvals. You should aim to close the deal as quickly and smoothly as possible and celebrate your success.

6 Maintain relationships

The sixth and final step to develop a sales pipeline is to maintain relationships, which means to keep in touch and provide value to your clients after the deal is closed. You need to deliver your services with excellence and professionalism, meeting or exceeding your clients' expectations and solving any issues that arise. You also need to seek and act on feedback, measure and report on results , and provide ongoing support and advice. You should aim to maintain relationships with your clients to ensure their satisfaction, loyalty, and referrals.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?