On shortening sales cycles
Tic toc, tic toc, tic toc…there is nothing more frustrating for sales professionals than to be waiting for their prospects to decide if they will buy or not. Dubious deals affect negatively the sales forecasting while consuming enterprise resources. Excessively long cycles can even mean the failure of promising startups as they run out of funds.
Since I work as Business Developer Manager, I have experienced myself the consequences of long sales cycles and doubtful completion of deals. At the beginning of joining my current company I was praised by my manager on how many leads I was generating. Unfortunately, most of them ended up reaching blind spots, generating frustration and resentment on myself and my coworkers. But as I have been acquiring more experience on the job, I have been able to close deals faster while increasing their value. Creating not only expectations but also a tangible impact on my company: increased revenue and new markets.
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In this article I want to share with you my main learnings on how to shorten the sales cycle:
· Set the right targets
Define your target by considering what type of companies benefit the most. Research what business issues they are experimenting and tied the benefits of your offering to their concerns. Additionally figure out the key contact people you need to involve, making sure you only open a deal if you have their interest. Make clear the dynamics of these individuals, what are their goals and incentives: personal and professional. Then you will be in a better position to deliver your value proposition at the right time.
· Design your path to success
Every sales process has their unique characteristics. But you must figure out the common steps they all have to go through, since they start being aware of your offering until they end up signing the deal. Crafting a standard customer journey based on experience will give you the confidence to propose the next step at the end of every sale phase. So you are the one leading the process. If possible, make the process flow through incremental closings so your prospect will commit a bit more in every step.
· Disqualify, disqualify and disqualify:
Avoid “happy ears” syndrome at all costs. This is when you only listen or interpret positive signals. What you should do is dig deeper into the prospect’s motivation to buy. Being strict in your deal validation is key to focus your efforts and increase your closings. Never forget that you are evaluating if your prospects have the potential to become a client. Keep in mind:
o Be clear on price from the beginning. Do not be afraid of budget checks.
o Surface their objections. Ask difficult questions that validate their interest.
o Figure out why they want to buy and if there is a compelling event for them.
I know the feeling when a prospect stop answering your phone calls or emails: it is heartbreaking! That is the result of filling your pipeline with leads who told you that your product is nice to have, but you truly lack the insights on their motivation to buy. When reviewing my pipeline, I always keep in mind this phrase from Napoleon Hill: “A goal is a dream with a deadline”
We, as sales professionals, must help to materialize ours prospect dreams so they can achieve their business and personal goals. But we must avoid getting lost in the hype of the potential benefits. We need to agree on a tangible action plan with specific KPIs and dates - so we do not miss our forecast!