A lot of HubSpot users have queries about Lifecycle Stages, when to create a Deal and how they work together.
If you create a Deal too soon in the Buyer's Journey, it can lead to inaccurate reporting and forecasting. Deals should be created once a Contact / Company has been qualified and it's a realistic opportunity.
For example, are you ready to report on the deal? Commit to a probability of closing? Or, talk about it in a Sales meeting? If not, then it's probably too soon, but you can use Lifecycle Stages to manage and track the contact / company.
Marketing and Sales need to align and agree on terminology, definitions and when each Contact or Company move to the next Lifecycles or Deal Stage.
Not all Lifecycles need to be used and they can be customised and automated, as can Deal Stages. Lifecycles can also be synched across Contacts and Companies, ensuring accurate and consistent data, this is managed in the settings.
When a Deal is created the Contact's Lifecycle changes to Opportunity and will stay as Opportunity until the Deal is Closed / Won and becomes a Customer Lifecycle. If a Deal is Closed / Lost you can set the Lifecycle in the settings.
The infographic below shows a Contact moved through the Lifecycles and Deal Stage. It also show Lead Status which is traditionally used as a sub-set for Sales to breakdown the SQL stage. If you have Professional or Enterprise, you'll have access to HubSpot's 'Leads' which takes the place of Lead Status and offers many more options to track and manage the Lead. If you have Free or Starter hub, continue to use Lead Status.
Download the comprehensive infographic guide on using HubSpot Lifecycles, Lead Status, and Deal Stages.
