What Is Sales Cycle?
Sales cycle can be referred as the specific steps within the sales process that includes converting leads into closed sales or can be defined as the time taken between receiving an order and converting the sales into cash.
Every company has its own definition of the sales cycle and hence they have different steps and alternative activities in their sales cycle.
It doesn’t matter what products or services you’re selling, the selling pattern of all the companies will always remain the same.
One thing that will help all the companies to go well with its sales process is identifying the key steps and stages. This improves the sales efficiency, help salespeople sell more and speed up the process of onboarding new sales hires.
Steps Involved In Sales Cycle
Some common steps involved in sales cycle followed by most of the organisations are described below:
- Prospecting: This step is concerned with finding right leads for your business or say finding ideal customer.
- Initiating contact and qualifying the prospects: The second step is to contact those targeted lead either by calling, sending email, meeting them in person, letter etc. so that you can identify if they are interested. Check out some Lead Forensics Alternatives for software which can assist you with this.
- Presenting offers: It’s all about selling your company. The heart of the sales cycle. The best way to convince your prospect to buy from you.
- Addressing objections: Listen to your prospect carefully, break down the barriers, and address their pain points and the objections intelligently and patiently. Clear all their doubts.
- Ask for sale and close the deal: When the lead is convinced and seems interested in buying from you, immediately ask for the sale and get the deal signed and close it.
- Follow-up and ask for referrals: Make a survey to know if your customer is happy with your products/services. If yes, you can ask them for referrals and if no, fix their problem.
Why Is Sales Cycle Important For Business?
If you will ask me how long sales cycle takes to complete the process then honestly, I can’t answer the question. Because as I said the sales cycle varies company to company, however all of them attempt to shorten the cycle in order to close the deal as soon as possible.
An efficient sales cycle is an evidence of how well your leads are converted into sales which, in turn of course, translates into a healthier bottom. Below I have brought few advantages of sales cycle that will surely convince you to employ it for your business too.
- Brings Value To Your Business
There are several reasons a sales cycle can bring value to your business. A sales cycle and an overall sales process provide major benefits for your functionality in terms of management and tracking the overall sales performance and efficiency.
An utterly-implemented and a regularly authorised sales cycle allows one to create a clean system with sustainable results through. As we proceed in this piece of content, we will see how we can achieve better results.
- Closes Deal Shortly
The most feared aspect in selling is losing a potential customer and that’s the reason why sales professional want to close the deal as quickly as possible. The faster and smoother one progress a lead to close the deal, less is the chance of losing that potential customer or prospect.
- Allows You to Prioritise More Important Task
A well-implemented sales cycle lets you organise the tasks in a sequence. This organisation helps you to prioritise the task in accordance to their value and importance. You get to know where you need to spend more time and where you don’t need to. This way you would be able to work according to the priority of the task set in the list and can achieve better results at a certain time. Also, the task will be done at its scheduled time and hence you can avoid getting delayed at work.
- Better Efficiency
Obviously, if you are doing things in an organised way the chances of getting an efficient result is sure. Since the foremost step of a sales cycle is to find the right prospect, there’s no way to pitch any random prospect and wasting the priceless time there. When you avoid wrong prospecting you save a lot of time and hence, achieve better and positive results.
- Better Long-Term Results
A better consistency, efficient result, increased productivity, high return-on-investment, organisation, prioritisation, speed and familiarity, are all more than sufficient to maintain a better long-term result for business and its success.