Base your deal stages on what the buyer has done, not what you have done. "Demo completed" is a seller action; "Customer validated ROI with their CFO" is a buyer action.
Strong answers show discipline: regular pipeline reviews, qualification criteria (BANT/MEDDIC), deal stage definitions tied to buyer actions not seller actions, risk signals (going dark, delays in next steps, missing stakeholders), and realistic forecasting that accounts for slippage.
Tests sales operational rigour. Red flag: unable to explain their pipeline methodology, or consistently over-forecasting. Good sign: can name specific risk signals and mitigation strategies.