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If you watch a lot of TV and movies, the selling process seems very random and exciting.
One might imagine some hot-shot salesperson walks up to a guy who seems uninterested in buying anything and then sweet-talks them into purchasing a motorcycle right on the spot.
Or maybe a flashy Wall Street stockbroker pulls off a sale worth millions of dollars and celebrates by popping champagne around his cheering colleagues.
In reality, selling is a lot more methodical. It's captured in what we refer to as the sales cycle, and it generally includes several recognizable milestones you need to hit in order to close on the prospect.
The sales cycle refers to the process that encompasses everything about selling a product, from identifying a prospect all the way to closing a sale.
While the sales cycle can differ depending on the marketing and sales strategy of individual companies, they follow the same general characteristics.
The main variation appears to be the start point. Some say it begins with nothing and ends with the sale, others say the cycle doesn't begin until you have a qualified prospect.
The sales cycle has seven stages, and each one is vitally important in order to close a sale and then retain the customer, especially in B2B sales.
In the phase of prospecting, you identify and then qualify a prospect.
You should have a buyer profile that describes what your typical customer looks like and is interested in, which should help you determine whether a potential customer is likely to buy your product or service.
This may be your most important step. If you don’t do this correctly, you might waste your time on the next six steps in the cycle on someone who is not likely to buy from you, no matter what.
With a prospect identified, it’s time to research the client to determine what their business looks like and what their needs are.
This will help you identify a pitch that will resonate with them and answer any objections that are likely to come up.
By researching the company and their needs, they will trust you more as someone who truly understands their business.
With the research done, you can make your first contact with the client. This is not an attempt to close the sale or even to make a full pitch.
This call should be relatively conversational and introductory. You should introduce yourself and your company, and talk about matters that interest the client.
It’s a good idea to ask a few questions and propose a follow-up call to talk in more detail.
Once you have settled on a meeting to make a more serious sales pitch, prepare a presentation that breaks down the client’s problem and how your solution will handle it.
The presentation should be heavily focused on the client and not on your product. The purpose of this presentation is to show that you understand the client’s needs and you have a turn-key solution to solve it.
Objections are likely to come up at some point in your presentation.
There’s really no way to avoid them, but you can minimize their impact and even use them to your advantage. Counter them with even more compelling evidence that your product is the right choice.
This is where you attempt to get the buyer to make a purchasing decision.
It’s different from the other stages of the sale because you are no longer trying to convince the client that your product will solve their problem; you’re trying to get them to commit to an action.
Part of being a good salesman is being an effective closer, so you need to master this part of the sales cycle.
Things can still go wrong after you close.
Your client could change their mind, or they could ditch the product a few months down the road when they decide it isn’t meeting their needs.
You need to send a follow-up email or reach out with a phone call to make sure they are enjoying the product, and to step in and fix any problems if they exist.
CRM software (customer relationship management) is vital to any salesperson, for a few key reasons:
If you aren’t adhering to the full sales cycle, sales forecasting becomes virtually impossible, and your sales pipeline is going to be a mess.
You are leaving money on the table and missing out on potential sales if you aren’t carefully moving customers through the sales cycle.
For maximum success, you need to get organized right away and set up your own sales process.
Our Small Business Expert
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