Having a sales system is vital to success. It puts things in order, allows for a more seamless process, and leads to better sales production.
When problems arise that involve customers, a business with a sales system is easier to deal with. It takes less effort to spot and address issues. Hence, business owners should use strategies such as the sales cycle.
What is a Sales Cycle?
A sales cycle is basically the process of making a sale. It is a step-by-step approach on how to turn tire-kickers into buying customers. Once accomplished, the whole cycle is repeated.
Each step plays an important role in nurturing a customer. How it is structured or executed can make or break a sale. To be specific, a step that works should lead to the next stage of the sales cycle. Otherwise, it becomes a setback or completely drives away a potential customer.
The steps of a sales cycle may vary. A typical structure aims to prospect leads and nurture them until they are ready to avail of the service or product offered.
What are the Steps?
To illustrate, below is a sales cycle of a company that offers goods.
Step 1. Generating Leads: Hey there, Stranger.
Before someone becomes a customer, they are first a stranger to you, your product, or both.
This is the stage where you turn a stranger into a lead. It is often done by sparking interest like making small talk, handing out a flyer or a business card, and doing an elevator pitch. If they give you their contact details, they become a lead.
Where can you find people to convert into leads? Anywhere. They are found in places such as malls, salons, retail businesses, and restaurants.
People you already know are also considered leads. They are your family members, friends, and acquaintances. Again, if you have their contact details, you can consider them as leads.
Step 2. Prospecting and Qualifying: At First Glance…
A lead that shows a small interest in your offer does not tell you much. If they have no actual plans of buying (desire) or they cannot afford your product (ability), then they are not a prospect. In this case, it is time to focus your energy on other leads.
You can know more about their desire and ability by setting up an appointment, sending a text message or email, or giving them a call. Once you find a qualified prospect among your list of leads, you can move on to the next stage.
Step 3. Nurturing your Qualified Prospect: Emotional Cues
At this stage, your qualified prospect is ready to learn more about your product. You can present it in different ways like conversing over coffee, doing a PowerPoint presentation, and even inviting them to your showroom, or office.
However, nurturing your prospect requires being sensitive to emotional cues. For instance, some people do not want to be overloaded by information, while others are okay with it. Having the skill and patience to read your prospects can help you take them to the next stage of the sales cycle.
Step 4. Handling Objections: I object!
Objections can be as simple as raising a few concerns, to having impossible requests. Your ability to handle objections can make or break a deal. However, you can only improve on handling them through experience.
No matter how hard you practice behind closed doors, nothing will prepare you for each possible objection. People simply think differently. Every salesperson knows this.
Step 5. Closing: Congratulations!
This is the stage wherein your customer purchases your product. It might be the final step, but you may still encounter a few hiccups right before the purchase. To overcome this, it is best to stay patient and be attentive.
You may also apply closing techniques if you think your customer is ready and only needs a little push. If not, they probably need more time. Again, be sensitive to emotional cues.
Step 6. After Sales Service
If you want to earn your customer’s trust and loyalty, a successful sale must not end there. Ask your customer about their purchase. Are they satisfied? Do they need further assistance?
Make follow-ups, and be genuine about it. This simple act produces repeat customers and earns referrals.
How do I make my own Sales Cycle?
There is no exact formula in creating a sales cycle. It is different for every business. A strategy that is effective for one might not be effective for another.
If you already have experience in closing sales, write down the steps that took you there. A process that helped you succeed can serve as your sales cycle.
If you have no experience yet, you can do your own research. See what strategies appeal to you the most for every stage. Once you have come up with a system, try it out. Make adjustments as you go until you come up with an effective sales cycle.
If a strategy does not work, it does not automatically mean it is ineffective. Other factors must be considered such as the type of business, customer, and even the current season. Your sales cycle must learn to adapt to changes if needed.
[Read Next: 5 Foolproof Success Tips for Remote Sales Work]
Why is it Important?
Backbone
A sales cycle is essential. It serves as the backbone of every business. Without it, businesses will struggle to survive or completely cease to exist.
A barbershop without a sales cycle will barely have regular customers. A real estate company without a sales cycle will barely sell properties. A security agency without a sales cycle will struggle to close deals with companies in need of security guards.
The sales cycle helps generate customers and revenue, which keeps businesses alive. Having no sales cycle sets a business up for failure.
Efficiency
When a business has a sales cycle, everything is more organized. Employees can simply follow the plan. They do not need to create a system themselves, which consumes more time.
Wins Customers’ Hearts
Customers can distinguish if a company is sincere with its actions. By having a sales cycle, customers are better served during and after the sales process. On the other hand, having no system makes them feel that businesses only care about making sales.
This proves that the sales cycle benefits both companies and customers.
