Salesforce Opportunity Stages – Explained 2024

The “Salesforce Opportunity Stages” is a crucial aspect of managing sales in Salesforce. It refers to the different phases or steps that a sales opportunity goes through, from initial identification to closing the deal. As the deal progresses positively, the probability of winning the deal is more. It’s essential to track the phases of the sales journey for any deal to understand how much more we need to push to win it completely. 

The Salesforce sales process brings more efficiency and effectiveness to your real-time sales problems. Sales stage definition in Salesforce helps the team to accelerate the process and close the deal in no time.

Understanding and effectively utilizing these stages can help sales teams to efficiently manage and track their sales pipeline and increase the likelihood of closing deals. 

In this blog, we will provide a comprehensive explanation of the Salesforce Opportunity Stages and how they can be used to improve sales performance.

Opportunity Stages

The Salesforce opportunity has a lot of phases when it’s nurtured. These phases are mostly associated with real-world phases, and these phases in Opportunity are called Opportunity stages. Other than out-of-the-box Opportunity stages, you can customize new stages in your sales process. 

Similarly, if you think some of the out-of-the-box stages are not relevant to your sales process, you have the option to eliminate such stages.

The below image shows the different stages in an Opportunity nurturing process.

How Can an Admin Access Default Stages of Opportunity?

For that, we need to navigate to Setup and find the Object Manager. We should select the Opportunity object. Under Opportunity, navigate to Fields & Relationships → Stage. You can see all default stage values over there.

How to change Opportunity Stages in Salesforce?

The opportunity stages in Salesforce are:

1. Prospecting
2. Qualification
3. Needs Analysis
4. Value Proposition
5. Decision Makers
6. Perception Analysis
7. Proposal/Price Quote
8. Negotiation/Review
9. Closed Won
10. Closed Lost

Prospecting: A prospecting deal is a newborn opportunity and is a potential prospect.

Qualification: Each customer will have certain validation on a deal. Qualification is one step more advanced than Prospecting.

Stages from 3 to 6: They primarily handle more validations about the deal, key decision-maker inputs, approvals, etc.

Stages 7 and 8: They are the pricing and negotiation stages. Once the deal reaches the pricing stages, the probability of winning the deal is high.

Closed Won: It means the deal is successful! Yes, we have done and dusted the deal.

Closed Lost: It is an unsuccessful deal.

How Does Stage Value Decide the Winning Probability in a Sales Process?

Now, we are clear that stage is nothing but a standard picklist field on the Opportunity object. However, this field gives a lot of predictions and winning probability in a sales process. The stage field is associated with other standard fields such as type, probability, and forecast category.

The Type is also a picklist field with three standard values – Open, Closed Won, and Closed Lost. Open means that the Opportunity is active, and the sales agent is proactively working to make it successful. Closed Won is a successful deal, and the company has acquired the business for that deal. Closed Lost is an unsuccessful deal.

The Probability gives the percentage of winning the deal successfully. For example, if the deal probability is 70%, there is a 70% likelihood of winning the deal successfully. This probability gives a vision to the sales agent, and accordingly, he can accelerate his work.

The Forecast Category tells us the deal category value, such as 

Pipeline, Best case, Committed, Closed, or Omitted. The pipeline value says the deal is in the pipeline, and we need to work hard to make it successful. All active deals with initial stages used to be in the pipeline category. When the deal moves positively, the next positive case is the ‘Best Case.’ This is one step up from the Pipeline category. Committed means the deal is successful unofficially, and we are on the verge of winning the deal. Closed is a successful deal, and Omitted is an unsuccessful case.

The standard definition of the stage, type, probability, and forecast category are as follows.

However, in real time, we may not be able to define stages and categories in a standard manner across all customers. Hence, Salesforce provides the flexibility to decide new stage values, probability, and other values per each customer’s sales process definition.

How Do We Create Custom Stage Values?

The process of custom stage value creation is simple. If you are an admin with knowledge of custom picklist creation, then you are in it. 

​​First, navigate to Setup and Object Manager. Our object is Opportunity. Select Fields & Relationships from Opportunity and select the field Stage from there.

Click on New and create a new stage value. It’s advisable to give a proper description of your stage value. Select type, probability, and forecast category as per your company definitions. Also, select the sales process if you have multiple record types. 

Summing Up

Now, we understand how different stages give probability and winning chances for an Opportunity. In real-time, we can make stages with our needs and definitions. We need to make sure that we deal with a lot of stage values, creating a lot of perplexity for an agent. Our intention will be good by defining more stage values, but it may end up being more confusing. It’s advisable to use Salesforce paths to show the stage values as it gives more visibility for the tracking purpose. 

The Salesforce Opportunity Stages play a vital role in managing and tracking sales in Salesforce. By following and utilizing these stages, sales teams can better understand their sales pipeline, prioritize their efforts, and increase the chances of closing deals. Understanding and effectively using the Salesforce Opportunity Stages can result in improved sales performance and help organizations reach their sales goals.

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Frequently Asked Questions (FAQs)

1. What are the opportunity stages in Salesforce?

Opportunity stages in Salesforce symbolize distinct milestones within your organization’s sales pipeline. They include stages like ‘Prospecting’ for potential leads, ‘Qualification’ for assessing opportunities, ‘Needs Analysis’ to understand client requirements, ‘Value Proposition’ to suggest solutions, ‘Negotiation/Review’ for discussing terms, and ‘Closed Won’ or ‘Closed Lost’ to mark the final outcome. These stages help streamline sales processes and monitor progress effectively.

2. How to create opportunity stages in Salesforce? 

To create a new Opportunity Stage:

• Go to Setup.
• Navigate to Object Manager and select Opportunity.
• Select Fields & Relationships, then choose Stage.
• Click on New and add a new stage value. You can also specify the type, probability, and forecast category according to your company’s definitions.

3. How to edit Opportunity Stages in Salesforce?

• To edit an Opportunity Stage, follow the same path as creating a new stage.
• Once you’re on the Stage field, instead of selecting New, find the stage you want to edit and click on it.
• Modify the necessary details and then save your changes.

4. How to rename Opportunity Stages in Salesforce?

Renaming an Opportunity Stage in Salesforce can be done through the setup. Follow these steps:

• Click on the App Launcher (grid icon on the upper left), then find and select “Setup”.
• In the Setup menu, under “Objects and Fields”, select “Object Manager”.
• Scroll or search to find “Opportunity”, then click on it.
• Inside the Opportunity Object Manager, click on “Fields & Relationships”.
• Scroll or search to find the “StageName” field, then click on it.
• Here, you’ll see the list of your current Opportunity Stages. Click on “Edit” next to the stage name you want to change.
• Input the new stage name in the “Value” field.
• Click “Save”.

Note: Changing an Opportunity Stage name will not alter historical record data for Opportunities that were in this stage prior to the change. Be careful when renaming stages as it may impact reports and dashboards.

5. Salesforce Opportunity Stages Best Practices?

• Keep stages aligned with your sales process: Your stages should accurately reflect the steps your sales team takes with a potential customer.
• Limiting the no. of stages: Too many stages can be confusing. Try to keep your stages to a manageable number, typically around 5-7.
• Update stages regularly: Regularly update the Opportunity Stage as progress is made with the potential customer.
• Use Probability field: The Probability field gives a prediction and winning probability in the sales process. It can help give a vision to the sales agent about the likelihood of closing the deal.
• Customizing Stages for Individual Customer’s Sales Process: Salesforce grants you the flexibility to tailor the values for stages, probabilities, and other components according to each customer’s distinct sales process requirements.
• Use Salesforce paths: This feature shows the stage values and provides more visibility for tracking purposes.

Please note that the steps may vary slightly depending on the Salesforce edition and specific customizations of your Salesforce instance.

6. How can I use Opportunity Stages to improve my sales process?

Utilizing Salesforce Opportunity Stages effectively can significantly enhance your sales process by providing a structured pathway from lead acquisition to deal closure. Here’s how you might use them to improve your sales process:

• Structured Sales Pathway: Define clear stages that align with your sales process, guiding your sales team through each step of the customer journey.
• Probability Assessment: Each stage can be associated with a winning probability, helping to prioritize efforts on deals that are more likely to close.
• Sales Forecasting: By analyzing the stages, you can forecast sales and revenue, helping to allocate resources effectively.
• Performance Analysis: Analyzing the time spent in each stage and conversion rates between stages can highlight areas that need improvement or additional training.
• Customer Insight: Understanding where deals are commonly won or lost can provide insights into customer behavior and potential barriers to sale.

7. What are the different types of Opportunity Stages?

Salesforce Opportunity Stages represent the various milestones in your sales pipeline. Some of the standard stages include:

• Prospecting: Identifying potential leads.
• Qualification: Assessing the viability of opportunities.
• Needs Analysis: Understanding client requirements.
• Value Proposition: Proposing solutions.
• Decision Makers: Engaging key decision-makers.
• Perception Analysis: Evaluating perceptions and objections.
• Proposal/Price Quote: Providing detailed pricing and terms.
• Negotiation/Review: Discussing and adjusting terms.
• Closed Won: Successfully securing the deal.
• Closed Lost: Unsuccessfully concluding the opportunity.

8. How can I track my progress through the Opportunity Stages?

Tracking progress through Opportunity Stages in Salesforce can be achieved by:

• Utilizing Salesforce Paths: This feature visually represents the stages and provides guidance and resources for each stage, enhancing visibility and tracking.
• Regular Updates: Ensure that the sales team updates the Opportunity Stage as they progress, providing real-time insights into the sales pipeline.
• Dashboard and Reports: Create dashboards and reports that visualize the distribution of opportunities across different stages, providing a quick overview of the sales pipeline.
• Alerts and Notifications: Implement automated alerts for stagnation in stages or when opportunities move to critical stages like ‘Negotiation/Review’.

9. What are some common mistakes to avoid when using Opportunity Stages?

Common mistakes to avoid include:

• Overcomplication: Having too many stages can be confusing and counterproductive.
• Inconsistency: Ensure stages are consistently defined and used across the sales team to avoid misinterpretation.
• Neglecting Updates: Failing to update stages in real-time can lead to inaccurate sales forecasting and resource allocation.
• Ignoring Data: Not utilizing the data from Opportunity Stages for analysis and improvement of the sales process.
• Lack of Alignment: Ensure that the defined stages align well with your actual sales process and customer journey.

10. How can I use Salesforce Opportunity Stages to generate reports and dashboards?

Salesforce Opportunity Stages can be leveraged to create insightful reports and dashboards by:

• Sales Pipeline Report: Generate reports that showcase the distribution of opportunities across different stages, providing insights into the health of the sales pipeline.
• Win Rate Analysis: Create reports that analyze the win rates associated with each stage, identifying potential bottlenecks or high-performing stages.
• Stage Duration Analysis: Report on the average time opportunities spend in each stage to identify areas that may need streamlining or additional support.
• Revenue Forecasting: Utilize the probability associated with each stage to forecast expected revenue from the current opportunities.
• Custom Dashboards: Develop dashboards that visualize key metrics like the number of opportunities, potential revenue, and average duration in each stage, providing a quick overview and facilitating strategic decision-making.

11. What is the opportunity life cycle in CRM?

The life cycle of an opportunity within a CRM system is depicted through a sales pipeline. This pipeline outlines various potential statuses for an opportunity, along with the specific actions required to progress an opportunity at each status. Throughout its life cycle, an opportunity may transition through several different statuses.

12. What is opportunity status in Salesforce?

In Salesforce, opportunities represent deals that are currently being negotiated or worked on. They keep track of deal specifics, such as the associated accounts, key stakeholders involved, and the potential sales value. When leads are configured in your Salesforce organization by an admin, converting a lead typically results in the creation of an opportunity.

13. What is the first stage for a sales opportunity?

The initial phase in the sales cycle is known as prospecting. This stage involves identifying prospective customers and assessing if they have a need for your product or service and the financial capacity to purchase it. This process of determining a potential customer’s need and ability to buy is referred to as qualifying.