Sales Cycle Fundamentals

Before you start prospecting:
Prospecting is the first step in the sales cycle, but that doesn’t mean that the first thing you should do is start calling random people. Having poor-quality leads can be worse than no leads at all, since you end up wasting a lot of time making cold calls to people who can’t buy from you even if they want to. Some pre-prospecting work on your part will help you come up with leads that are actually useful.

It’s time to use those leads you collected. Many salespeople prefer to cold call over the phone, but you can also meet in person, send an email, use social media or even mail out sales letters.

Whatever method you use to set appointments, you’ll usually want to set one up face-to-face rather than sell over the phone.

The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact.

The idea is to confirm that your prospect is both able and potentially willing to buy your product (before you spend a lot of time trying to pitch to him).

The presentation is the core of every sales cycle, and it’s probably where you’ll invest the most preparation time.

Keep in mind that you’re not just selling your product – you are also selling yourself as someone who can be trusted. You represent your company, so appearance counts.

Now is when you have to deal with your prospect’s concerns. Objections can actually be a positive sign, since they mean that your prospect is at least considering buying or he/she wouldn’t be bothering to work out the potential problems.

Once you’ve made your presentation and answered your prospect’s questions and objections, it’s time to ask for the sale.

This is the most important stage of the sales cycle – even highly interested prospects will rarely close themselves.

This is probably the most commonly neglected step. Put a follow-up process in place to make sure your customers are happy. This will earn you repeat sales, as well as get you referrals for new leads you can start driving through the sales cycle.

Consequently, a comprehensive inbound marketing program is critical to generating high-funnel and low-funnel leads, nurturing those leads through the buying funnel, and building your email database.

Some companies have an extremely well developed sales machine where leads pour in as inbound leads and all reps have to do is qualify them. Meaning, some leads make the cut to be sold to by reps and others are trashed.

Qualifying means asking why endlessly.
So let’s say your prospect needs a new accounting system. Why?It’ll help connect a lot of data. Why is that important? Because it was never done before and will greatly improve efficiency.

Most sales reps stop there and launch into the product/service description. Maybe if you ask why one more time, you’ll discover that it’s important because a new CFO wants to leave a mark on the company and get a big bonus.

And there, you’ve discovered your rational (need accounting system & why) and irrational (want my bonus and recognition).

There’s plenty of good advice out there on how to overcome sales objections, but most of it is about what to do during a negotiation. The fact is, objection handling starts much earlier in the sales process.

Once you send your first email to a prospect, or someone answers your cold call, there’s always a chance that they will simply say “no thanks.” Knowing how to respond to rejection can be tough.

There are many articles and books teaching you how to close. As it have been explained in this course, one effective method that will keep the sale progressing and will ultimately help you perform best is the Challenger method, that was proposed by the CEB Group.

But aside from Challenger technique (which you should be using at all times) let’s look at some other concrete methods.

Hubspot identifies two traditional closing techniques and states that these usually employ some psychological tricks designed to give that final nudge.

For example: 
“This is the last one at this price.”
“We’ve got a 20% discount just for customers who sign up today.”

This technique works because it creates a sense of urgency and can help when a prospect wants to buy something, but is hesitating to make a decision.

Salespeople who use this closing technique reiterate the items the customer is hopefully purchasing (stressing the value and benefits) in an effort to get the prospect to sign.

For example:
“So we have the Centrifab washing machine with brushless motor, the 10-year comprehensive guarantee, and our free delivery and installation service. When would be a good time to deliver?”

By summarizing previously agreed-upon points into one impressive package, you’re helping prospects to visualize what they’re truly getting out of the deal.

This technique involves using questions that eliminate objections, challenge the prospect’s status quo, and attempt to showcase to him/her that his indecision (which is also a decision), would be a bad one.

Psychologically, it’s also a powerful way to nudge a client. As when people arrive at their own conclusions (methodically brought on by your questioning), they are more comfortable with the choice that they end up making and more confident to take action.

The question allows you to discover whether the prospect is sold on your product while keeping the door open for further selling. If the answer is ‘no’, it remains their opinion (not yet the truth), thereby allowing you to continue to sell. If the answer is ‘yes,’ then closing the deal is the next step.

Here’s another example:
“Is there any reason why we can’t proceed with the shipment?”

Very often, prospective clients end up in no-decision-land and it’s on you to create urgency. This is one of the most powerful ways to get stalled deals to close and push though a sale.

Attach a deadline to the deal to help give the client an incentive to commit. Whether it’s a discount or something free, make them feel like they have the upper hand.

This does not mean rush the customer; it simply means try to give them a little extra reason why your product or service is the right choice, and the right choice right now.

When it’s pre-closing time and you’re about to get the contract signed, be prepared for the possibility that the client mentions something related to a competitor.

Competing for business is tough. Knowing the areas where you’re better than your competition can lead to that quick close. Again, this is all about preparation. Do your research and make sure that you take note of something that you are doing that your competition is not. This is oftentimes the biggest selling point, so you don’t want to ignore it.