If B2B sales had to be reduced to a single concept, it would be that of the sales cycle. It makes it possible to model how a company's products and services are sold, step by step. This representation offers a multitude of advantages to optimize sales!
Sales cycle: steps and tips
Let's say you're closing deals at a great pace - you should reach your goal (quota) for the month. But what about next month?
In sales, consistency and predictability are key. If you Do not have a frame to track your sales, you won't be able to forecast your sales for tomorrow, let alone for the next month or the next quarter.
In short, you will not know which Volume of effort you must start today to succeed in your goals tomorrow, given the natural gap between efforts and results obtained. Within the Akimbo Bootcamp, we insist on this concept every day!
What is a sales cycle?
Defining a sales cycle
The term “sales cycle” describes all stages of the sales process, from the first contact with the customer to the conclusion of the deal and customer follow-up. It can be formalized in writing (via a list of Bullet Points : step 1:...; step 2:..., etc.), or on any CRM by configuring the sales steps (Pipeline).
In other words, it's about the The journey of a potential customer, from the realization that he needs a product to the act of buying. By creating transactions for each commercial opportunity on your CRM, you can drag them from one stage to another and above all: track all associated data.
And since the sales process is a journey for a prospect, It is also a road map for a Business Developer.
The different types of sales cycles
The length of a sales process varies according to the product or service offered and the sales methods put in place by the companies but also the type of customer. Thus, among the most commonly used sales cycles, three types of sales processes are distinguished: Direct selling, Recurring sales and indirect selling.
La direct sale corresponds to the simplest and often the fastest sales cycle. It illustrates a sale of a product or service directly from the seller or commercial to customers.
When customers buy regularly from the same company, we talk about recurring sale. The strategy for selling companies is often to keep the customer in their portfolio as long as possible to avoid them buying only once. The relationship is maintained to increase the number of sales and the volume of purchases.
Finally, in the diagram of indirect sale, a third party is involved in the sales process. Often, retailers, wholesalers or distributors are the customers, but the aim for the selling company is to multiply sales and also turn them into recurring sales.
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Understanding the B2B sales cycle
The general case
The B2B sales cycle, or Business-to-business, refers to a series of phases or steps that occur when a company sells a product or service to another company, from making contact to closing a deal and continuing with customer relationship management.
There are several types of B2B sales cycles, detailed below.
The long or complex sales cycle
A long or complex sale is a large-scale transaction, involving large companies with large portfolios. This sales cycle can last several months, with multiple customer appointments bringing together several stakeholders, including decision-makers and shareholders. Negotiations are rigorous, long and demanding. In this case, customers are willing to evaluate all the alternatives and compare several commercial offers before concluding an agreement, which often involves strategic partnerships.
The sales cycle in SaaS startups
The SaaS sales cycle, Software as a Service, is defined as the journey of a potential customer from the start of sales discussions, through registration, to becoming a customer. The SaaS sales cycle is a set of actions that you initiate to turn visitors into paying customers. It usually starts with the initial need to provide customer support. It continues with the integration of new users through free trials (Free Trials) and ends with a series of renewal options for customers to choose from, based on their individual circumstances.
The short sales cycle or “one shot”
In contrast to the long or complex sales cycle, the short sales cycle consists in making a sale on a smaller scale, involving more individuals (B2C) than businesses (B2B), in a shorter period of time. It requires fewer steps, represents fewer challenges and Mobilize smaller amounts.
This sales cycle generally involves customers who need fairly little information to make a purchase or repeat customers who already have a good understanding of a given product or service.
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The B2B vs. B2C sales cycle: what are the differences?
Whether you sell to businesses or individuals, you need to control your sales cycle, but each can be very different from the other. B2C and B2B sales cycles require different levels of time investment, product knowledge and communication. Here are some key differences between the two:
The length of the decision-making process : When you're selling to individual consumers, the time between when they think about buying something and when they buy your product can be quite short. Of course, that's not always the case (especially if you're selling something expensive, like a car), but in many cases, buyers take your product off the shelf, take it away, and don't think about it anymore. When you're selling to businesses, that's not the case. The sales cycle can include several months of meetings, pitches, presentations, presentations, emails, and persuading all stakeholders before closing a sale.
Number of stakeholders : When selling to a single consumer, you need to convince only one person to choose your product or service. When you're selling to businesses, that number can increase rapidly. If you sell software, for example, you may need to persuade the CFO, CEO, or a number of people on the finance or marketing team.
Available prospects : B2C sales have a lot more potential leads than B2B sales, for the simple reason that there are more people than businesses. In a B2B context, getting to know your audience — the specific types of businesses your product or service is supposed to help — is even more critical because there are fewer leads to choose from. You should focus on how your product or service helps each business individually, not just a theoretical customer persona. You may need to have a thorough understanding of what you are selling in order to adequately answer any questions you are asked.
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What are the 5 classic stages of the sales cycle
Above all, a sales cycle is adapted for each company according to the sector of activity, customers, sector of activity, the solution marketed, etc.
In general, a sales cycle consists of 6 sales stages:
- Step 1: contact and commercial approach ;
- Step 2: the phase of discovering, arguing and dealing with objections ;
- Step 3: commercial negotiation ;
- Step 4: The conclusion of the sale ;
- Step 5: Loyalty.
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How do I manage a sale?
To be able to manage a sale successfully, it is necessary to integrate one step before starting your sales cycle, namely the preparation for the contact and the commercial interview, which impacts from 70% to 80% the conclusion of the Deal.
First of all, you need to know all the characteristics of your product or service to be able to present it and answer questions during the presentation of the solution or during the stage related to objections.
Also, always assume that a lead won't easily make the connection between a characteristic and an advantage. This relationship should be clearly established during the sales cycle. (especially during the discovery phase and the commercial arguments). Working on this beforehand requires you to relearn your solution in a perspective of benefit and advantage for the prospect. Imagine having to respond to a “So what?” from the prospect to each characteristic you highlight.
In a second step, conduct early research on the company or your customer in order to gather as much information and data as possible. Indeed, this preparatory stage leads to the identification of your ideal customers and therefore to the development of adapted approaches. Knowing your prospect better means allowing yourself to follow the main challenges of the business sector, to follow the latest trends or news (fundraising,..., recruitments, events, etc...) in order to be relevant when making contact.
In this way, you will be in a good position to sell your product or service by connecting its benefits and advantages with the pain of potential customers to convince them that your solution is the most suitable for their situation. This position will allow you to optimize your chances of bringing the commercial interview to a successful conclusion: the conclusion of the sale.
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How can you improve your sales cycle?
The success of your business can be directly linked to the effectiveness of your sales process. Invest time in practicing these 4 steps to improve and refine your business cycle:
- Ask open-ended questions
Never assume you know anything about your potential customer — always ask. The more information you can gather about your customer's needs, likes, dislikes, and challenges, the better able you'll be to close a sale. Stick to questions that encourage a thorough response and avoid yes/no questions that can end the conversation.
Remember, though, that all the questions in the world will be for nothing if you don't listen to the answers. People love to talk about themselves and their business, so let them do it! Aim for an 80/20 ratio between listening and speaking.
- Teach your prospect something that will be useful to them
Using the information you've gathered from your well-formulated questions, look for opportunities to teach your prospect something that will benefit them. The trick here is to teach without mentioning your own service or product. It may seem counterintuitive to give information without expecting something in return, but remember that you are trying to build a relationship. Offering unrequited advice shows that you really want to help and that you don't just care about getting the sale.
- Qualify the customer using the GPCTBA methodology
The era of”Always conclude” is over. Instead, use the information you've gathered throughout the sales process to qualify the customer. Approach this customer qualification process with the help of the GPCTBA methodology:
- Goals (Objectives);
- Plans (Action plans);
- Challenges;
- Timing (Deadlines);
- Budget;
- Authority (Authority).
Identify the goals the prospect is trying to achieve, the plans they have to achieve their goals, the challenges that may prevent them from achieving their goals, and when they want to achieve those goals.
Talk about the prospect's budget, business needs, and the timeframe for deploying a solution, and determine who has the final buying power.
The more you know about your customer through these qualification questions — and the more you show how your product or service helps the prospect reach their goals — the closer you are to selling.
- Close the sale
While it may seem like the most difficult step in the sales process, if you've completed the previous steps correctly, your conclusion should be fairly simple and result in a sale. But even the best laid out plans can have shortcomings. If you've reached this stage and you and the prospect don't agree on the next steps, don't be afraid to repeat the previous steps. Reviewing the process from the previous steps can highlight areas where the prospect may be hesitant and will give you an opportunity to address any objections.
If your interaction doesn't lead to a sale this time, keep the prospect engaged by offering them a feasible “next step.” This could be a follow-up appointment, a product demonstration, or another meeting with other decision makers. Establishing a next step gives you another opportunity to repeat your business cycle.
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CRM: the tool to manage your sales process
If you have an idea of what your sales cycle looks like, you can set up your pipeline with these steps and then record and manage your interactions with prospects. Your Sales & Business Developers therefore have a consistent process to follow and document throughout the sales cycle. In addition, a CRM offers Sales Managers or Head of Sales a high level of supervision. They can track Sales performance, the steps that cause the most customers to lose, and the conversion of different lead sources.
Here are the main benefits of using a CRM:
- Evaluate your sales cycle : A CRM tells you what to do at each stage of the sales cycle and tracks each of your transactions, allowing you to identify any trends, for example if deals tend to run out of steam during a particular stage.
- Measure sales performance : Additionally, because you can know how each salesperson is performing, you can identify specific areas that need to be improved, for example if a salesperson has a tendency to lose business during the sales pitch phase.
- Predict your earnings : By monitoring the progress of each case in the sales cycle, you can estimate your chances of success and therefore predict your earnings.
- Integration with other tools : Most CRMs integrate well with other software, giving you access to workflow automation that you can use to more easily move business through the sales cycle.
To manage a sales cycle with a CRM, simply create contacts, customize the interface to match your process, and then use the built-in tools to analyze what's working as well as where to improve.
Several CRMs exist on the market, such as HubSpot, Salesforce or Pipedrive.
Our opinion on the one shot sale
Short sales cycles or “one shot” allow businesses to reach a greater number of customers and to achieve high sales volumes, which results in higher incomes. It can also contribute to Motivate members of a Sales team, because they see results immediately, instead of waiting in a long sales cycle. Customers tend to favor this type of cycle as long as you help solve their problems and that you provide them with a quality product or service. A faster sales cycle can also help you Give an edge over your competitors, because it allows you to find a repeatable sales process that works andimprove your products based on Feedback From the market.
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