{"id":3163,"date":"2020-05-25T14:02:05","date_gmt":"2020-05-25T19:02:05","guid":{"rendered":"http:\/\/blog.kmbrian.com\/?p=3163"},"modified":"2020-12-04T15:13:28","modified_gmt":"2020-12-04T21:13:28","slug":"sales-cycle-stages","status":"publish","type":"post","link":"http:\/\/kmbrian.com\/blog\/sales-cycle-stages\/","title":{"rendered":"How to Build a Sales Process That Rocks the 7 Stages of the Sales Cycle"},"content":{"rendered":"
No matter what industry you\u2019re in, every business follows the same basic sales stages to close deals<\/a>. Having this process down pat ensures you\u2019ve got a clear and consistent method that nurtures leads into sales.<\/p>\n A sales cycle is the process that your company undertakes when selling a product or service to a customer. It’s a series of steps that lead to a sale.<\/p>\n Think of it like meeting someone new. You don’t jump straight into a relationship, right? First, you get to know them, what they like, and their goals. Then, you talk, meet, and work together to see if you\u2019re a match. Only then can your relationship grow. The sales process is similar.<\/p>\n As a salesperson, you probably take great joy in coming up with new ideas and improvising. However, knowing and naming the steps in your sales cycle can make all the difference in your business\u2019s success.<\/p>\n There are a few key benefits<\/a> to knowing the steps in your sales cycle. First, you can optimize your team structure to support your sales cycle. For example, if you know your biggest challenge is finding qualified leads, you can put more team time into that stage of the cycle.<\/p>\n Secondly, having a sales cycle process makes it easy to onboard new staff. It\u2019s an easy way to see what the short-term and long-term goals are, and how each step in the cycle supports the next.<\/p>\n You might also notice places where large amounts of effort are going to waste. Knowing your process lets you eliminate low ROI projects and helps your team focus on the efforts that give you the most results.<\/p>\n Finally, you can better pinpoint which steps in the sales cycle need improvement. You might discover that your team is excellent at generating leads but bad at making contact. Because you can pinpoint this, you can now consider offering training on how to write better emails, get past gatekeepers<\/a>, and other obstacles they might face.<\/p>\n Let\u2019s break down the seven main stages of the sales cycle: prospecting, making contact, qualifying your lead, nurturing your lead, presenting your offer, overcoming objections, and closing the sale<\/a>. We’ve also included one additional bonus step that can help speed this cycle up.<\/p>\n Prospecting is the first step in the sales process. In this stage, you might be looking at your target customer profiles, identifying potential clients for contact, and considering the best way to approach them.<\/p>\n Don\u2019t rush it! Taking the time to thoroughly research your prospects is the best thing you can do to close more sales.<\/p>\n How do you research a sales opportunity? Let\u2019s break this step into three stages:<\/p>\n Start by creating an Ideal Customer Profile (ICP). While you may take it for granted that you know who your ideal customers are, the process of creating an ICP gives you a laser focus and can uncover new insights for your sales campaign.<\/p>\n It\u2019s critical to know who you\u2019re contacting and why.<\/p>\n At its most basic, your ICP will be a fictional company (based on real data) that:<\/p>\n You can get an idea of what goes into an ICP by taking Belkin\u2019s\u00a0online questionnaire<\/a>.<\/p>\n Once you have an ICP to work from, you can begin generating a database of potential leads who match that profile.<\/p>\n Finding those companies will depend on your specific requirements, but possibilities include social media (such as LinkedIn) and online databases (such as\u00a0Crunchbase<\/a>).<\/p>\n When you find those ideal companies, compile a list of the individual prospects at those companies for your sales team<\/a> to contact and qualify.<\/p>\n Even when working from the best ICP, you\u2019ll still need to qualify your individual prospects. Here\u2019s<\/a> an interview we did on how to qualify prospects\u00a0if you\u2019re curious, but in short, you\u2019ll want to look for four key factors:<\/p>\n You can then look into additional qualifiers depending on your unique requirements, such as company size, growth, geography, and so on.<\/p>\n While you may need to speak directly with your prospect to fully qualify them, you can usually get a good indicator of these factors during your initial research phase.<\/p>\n Now that you\u2019ve identified your dream client, it\u2019s time to reach out and build a connection.<\/p>\n This stage can be broken down into two distinct steps:<\/p>\n What\u2019s the best way to get hold of your prospects? Maybe they\u2019re particularly active on a specific social network, or they\u2019re\u00a0only reachable by phone<\/a>. Maybe\u00a0cold email<\/a>\u00a0is the best method, or an old-school postcard is needed to stand out from the competition.<\/p>\n Perhaps you\u2019re just not sure which means of communication is right for your ICP. As a general rule, we recommend steering clear of phone calls unless you have no other option.<\/p>\n Studies show that 80% of phone calls<\/a> go right to voicemail \u2013 and only 2% of the calls that get answered result in an appointment. Talk about slim chances!<\/p>\n The good news is, 78% of decision-makers<\/a> say they\u2019ve arranged an appointment or attended an event due to a cold email. Email is a great way to make direct, personalized contact with your lead.<\/p>\n The best time to send emails is<\/a> usually between 8 am-10 am and 3 pm-4 pm. During these times, people usually aren’t at their busiest, and might be checking email to wind up or wind down.<\/p>\n Using social media will depend widely on the platform and your audience \u2013 but it doesn\u2019t hurt to try. Consider pairing it with email marketing to boost your chances of making a connection.<\/p>\n However, in all likelihood you will use a combination of methods.<\/p>\n For example, you might interact with them on social media, send an email, then follow-up with a phone call. Either way, you have to remember to use the method that\u2019s best for your client.<\/p>\n You may love reaching out with connection requests on LinkedIn, but if your contact is inactive, doesn\u2019t respond to connection requests, or isn\u2019t even on the platform, even the most original, clever outreach message may as well be smoke signals.<\/p>\n They say you only get one chance to make a good first impression. So, no pressure.<\/p>\n When you finally reach out, it\u2019s important to have your objective clearly in mind. In most cases, this will not be \u201cmaking a sale\u201d. After all, would you buy anything off a complete stranger on the internet?<\/p>\n The higher your price point, the less likely someone is to buy from your initial outreach efforts, whatever its form. Instead,\u00a0use your outreach<\/a>\u00a0to introduce yourself, to build trust, and ultimately start a conversation. The sale comes later.<\/p>\n Qualifying your lead is your chance to learn more about your target prospect. Work to understand their goals, challenges, budget, and other important decision-making factors. In this stage, it\u2019s also essential to establish that you\u2019re speaking with the right decision-maker and to identify opportunities where you can offer high value (as per your ICP).<\/p>\n This step is also a chance to further qualify them as a prospect and confirm whether they meet the four key criteria I set out in step #1. If you realize they wouldn\u2019t be a good match, don\u2019t get discouraged. It\u2019s normal for less than 50% of initial prospects to\u00a0turn out to be a good fit<\/a>.<\/p>\n Avoid wasting time and team resources by communicating this concern to them. They\u2019ll either appreciate your honesty, or you\u2019ll learn a new detail about why they\u2019re still interested in hearing more. Talking directly with a prospect is the best (and often only) way to be certain they are the right prospect for you.<\/p>\n Now it\u2019s time to\u00a0prove your relevance<\/a>\u00a0to your prospect. Prepare yourself to answer key questions about your unique offers and benefits, as well as what problems you can solve for them.<\/p>\n Based on what you learn, you can nurture your lead. Even without objections, most prospects will need some kind of nurture sequence. For example, you\u2019ll likely need to move them along the\u00a0stages of awareness<\/a>, from pain aware to most aware. You\u2019ll still need to build trust, and the best way to do that is offer consistent value.<\/p>\n Nurturing leads involves educating them about the general product, service, or industry, personalizing your communication, and addressing common challenges.<\/p>\n While nurturing, you\u2019re working to establish a reputation for being helpful, responsive, and a reliable resource in your area of expertise.<\/p>\n In addition, you will likely come across prospects who are interested and otherwise qualified, but for whatever reason aren\u2019t ready to sign up right now. In this case, it\u2019s important to maintain regular contact \u2014 again offering valuable help \u2014 to stay top of mind. When they are ready to buy, you\u2019ll be the first person they think of.<\/p>\n In this stage, or possibly in stage three, you might even learn that your prospect wants a product or service urgently. Once you get to this point, it\u2019s best to move on to stage five.<\/p>\n So far, the cycle has focused on your prospect. You\u2019ve met them where they are, learned about their needs, and educated them on their questions and concerns.<\/p>\n It\u2019s time to take all that knowledge and present the best possible offer you can.<\/p>\n Keep your offer relevant, targeted, and personalized to the needs you previously discussed. Connect your offer to their challenges, budget, and long-term ambitions. Finally, think about creative ways you can present and package your offer<\/a>.<\/p>\n You\u2019ve provided information, support, and even given your best possible offer. Now, the ball is in your prospect\u2019s court. Usually, they return with an objection to your offer. The most common objections include price vs. value, risk, content of the offer, contract terms, and more.<\/p>\n If you can, it\u2019s best to try to handle these objections early, like in the nurturing phase. But sometimes it\u2019s just not possible to handle them ahead of time.<\/p>\n When you respond, be patient and empathize with their concerns. No one responds well to being rushed or pressured.<\/p>\n Make sure that you handle objections that relate to each other, as well. For example, if your lead is concerned with price, make sure they understand exactly what\u2019s included in your offer.<\/p>\n Once you\u2019ve offered an explanation, ask them to confirm that you\u2019ve handled their objection.<\/p>\n However, in some scenarios these objections won\u2019t be explicitly stated, meaning you\u2019ll need to learn to read between the lines. \u201cWe\u2019re not interested\u201d might mean they\u2019ve tried similar services before and been let down, and are worried about that happening again.<\/p>\n Familiarizing yourself with general objections will help. But to get to the real root of the objection, you\u2019ll often have to ask more questions. Once you\u2019ve asked a question, remember to listen carefully to their answer rather than preparing what you\u2019re going to say next.<\/p>\n Once all objections are handled, you can move into the final stage.<\/p>\n So you\u2019ve done a great job and you didn\u2019t let them see you sweat. It\u2019s time for the final stage of the selling process: closing the sale.<\/p>\n There are two separate parts to this step:<\/p>\n If the prospect matches your ICP, you\u2019ve reached out in a way that suits them, and you\u2019ve demonstrated value, then hopefully they\u2019ll be eager to buy.<\/p>\n You should never feel the need to \u201ctrick\u201d them into buying, but even a perfect prospect may require a nudge before making their decision. You can\u2019t rely on them closing themselves.<\/p>\n The key is to make it easy for them to say \u201cyes\u201d.<\/p>\n Closing the sale not only confirms their engagement, but also works to set up next steps. At this time, you can ask for a starting date or offer an extra benefit if they sign today.<\/p>\n It might be counterintuitive, but avoid offering discounts \u2013 studies show that this can decrease the odds of successfully closing a sale by 17%.<\/a><\/p>\n Closing is also an opportunity to remind them of a specific result you believe you can achieve for their business. However you choose to do it, feel free to be a little creative. There are a variety of great ways to close the sale<\/a>, ranging from indirect (\u201cAre you happy with the features in this particular package?\u201d) to the direct (\u201cWould you like to go ahead and sign up now?\u201d).<\/p>\n You can also introduce other factors, such as:<\/p>\n For example, at Belkins, the team is very confident in its ability to consistently deliver qualified leads to our clients over time, so they don\u2019t lock companies in with a minimum engagement period of three or six months, allowing them to pay as they go month-by-month. This policy helps them to close more business than their competitors, since clients don\u2019t feel obligated to a long-term contract from the first month.<\/p>\n If, after all this, the prospect still seems hesitant, it\u2019s often best to simply ask them what else they\u2019d need to know to make a decision.<\/p>\n Once you\u2019ve closed the deal and gotten their commitment, stick around to answer any remaining questions and provide them with clear next steps.<\/p>\n If you\u2019re having an in-person meeting, offer to send a summary email to them and their assistant or superior that reviews your conversation and agreement.<\/p>\n Finally, even with your best efforts, factors outside your (or the prospect\u2019s) control may mean the answer is \u201cNot yet.\u201d<\/p>\n In this case, the best thing you can do is add them to a nurture campaign (see above), regularly following up with any prospects who aren\u2019t yet ready to say yes.<\/p>\n You could also use this as an opportunity to reach out to additional contacts within the same company.<\/p>\n Rex Bibertson, founder of LeadCar<\/a> and author of Outbound Sales No Fluff<\/a>, shares his 4 best practices for creating your own sales process.<\/p>\n Sales is a combination of science and art: you have to solve a basic formula in a way that wows your prospects. I\u2019ve consulted dozens of startups all trying to master this critical pairing, and it\u2019s not<\/em>\u00a0easy.<\/p>\n Fortunately, the perfect sales process is not some elusive dream. It\u00a0can<\/em>\u00a0be built. It just might surprise you\u00a0how<\/em> it gets built (hint: it has a lot more to do with what your ideal customer needs to experience than whatever you think you need to do). Although tools such as CRM let you automate parts of the sales process<\/a>, it is the human touch points in your sales process<\/a> that matter the most.<\/p>\n Sales technology has gotten so advanced that we are starting to forget that a critical rule: Our tools shouldn\u2019t dictate our processes \u2014 our processes should dictate our tools.<\/p>\n When you\u2019re planning out your process, don\u2019t worry about what software you\u2019ve already bought. These days you can make most tools do what you need them to.<\/p>\n Start with your customer in mind. Think about the mindset they have before they learn about your product:<\/p>\n Then design the steps you take around the path they must follow.<\/p>\n Here\u2019s an example (written from the perspective of the customer):<\/p>\n How much better is this as a starting point than: \u201cDay 1: Email + Call. Day 2: Call and leave VM\u201d<\/p>\n We\u2019ll get there eventually, but the detailed steps aren\u2019t important unless they take your future customer on the right path.<\/p>\n Personally, I use Lucidchart for all my process mapping. They make it insanely easy for me to create and share ideas (plus I just\u00a0LOVE their brand<\/a>)<\/p>\n Next to each step the customer needs to go through, write the corresponding actions you need to take to ensure the customer can take those steps.<\/p>\n Here\u2019s an example from the customer journey I mentioned above:<\/p>\n Look at how much can be developed based on what the\u00a0prospect<\/em>\u00a0needs to feel. Ditch the \u201cbest practices\u201d \u2013 do what\u2019s best by the customer.<\/p>\n At this point you know what you need to do. Now you need to develop\u00a0how<\/em>\u00a0to do it.<\/p>\n For example, if I need to design and distribute a discovery call framework, I have a few options:<\/p>\n It\u2019s finally time to start thinking about your own team and not your customer. Here are four questions to consider when developing each step in the process:<\/p>\n If you think you\u2019ll be able to design the perfect sales process right out of the gates, you\u2019re setting yourself up for failure.<\/p>\n You should track your sales funnel metrics\u00a0before<\/em>\u00a0implementing new changes, then after the change is implemented. This way you can make a decision based on real data, not feelings, about how a particular step in your process is affecting your sales output.<\/p>\n Here\u2019s a list of some metrics you\u2019ll want to track:<\/p>\n To finish things off, you should always have an eye on what you could be doing to improve your sales process.<\/p>\n According to Dale Dupree of\u00a0The Sales Rebellion<\/a>, there are 3 places you should invest your time to do that:<\/p>\n Dale has 3 recommendations in each discipline to up your game.<\/p>\n We often live lives that are subject to our circumstances. In most cases, this is a choice we make. It is rare for people to take control of their surroundings and cultivate an environment that facilitates success. Setting aside time for you, preferably in the morning, is the first step in being able to make your life what you want it to be. Remember, the morning sets up the rest of your day.<\/p>\n In essence, we are telling you to never eat lunch alone. Sales is an emotional rollercoaster. A community mindset and the action fellowship will help to keep you grounded in reality and focused on the bigger picture behind your goals. What better time to recharge and continue to build alliances than over lunch? It\u2019s a classic way to bring people together.<\/p>\n This is not work. This is about having a passion for something, even if it is not what you do for a living. This is the practice of intentionally observing what is important to those you are looking to serve. Whether it\u2019s a better understanding of your product, your prospect\u2019s entire business ecosystem, or topics that might be outside of your scope of work. People will be attracted to your enthusiasm and knowledge. Be willing to learn. Be willing to share it.<\/p>\n The purpose of a story is to ignite the brain and make people engage with you from a different point of reference. Make your story relevant to your prospect and the pains they\u2019re experiencing that you can relieve. Make it meaningful for the conversation you\u2019re having. Make it blur the line between personal and professional personas. You are not separate from your 9\u20135, make sure people know it.<\/p>\n In other words, build your active listening skills and seek to read between the lines. What you see may not be what\u2019s really going on. For example, \u201cnot interested\u201d can mean a host of different things, none of which legitimately means \u201cnot interested.\u201d People use common phrases like this one to move the conversation in the direction they want. Look to discover the real meaning behind people\u2019s words.<\/p>\n It\u2019s the 21st century. There is no need to call a prospect who is so cold, they could give you frostbite. Utilize a pre-contact strategy that will create a sense of curiosity in your prospect before you ever reach out to them. But be aware: A brochure or flyer doesn\u2019t count. Everybody sends those; they end up in the trash. Create a marketing piece that expresses your personality and unique value while empowering your sales goals<\/a>. Then, send it to them before you ever call.<\/p>\n Know that your territory\/list is more than just a source of potential opportunity. It is a representation of many different people, and these people are tired of being treated as a means to an end. Be a champion to your community and a protector of your prospect\u2019s interests. Drop the agenda and look to truly serve. Then watch the opportunities grow.<\/p>\n Too many salespeople focus on the short term and forfeit opportunities that have not yet come to fruition. Create a five-year outlook. Who\u2019s going to be your client three, four, and five years from now? Create a 2-year campaign that has quarterly touchpoints. The aim should be to build a relationship with this prospect not to show them the latest offer for 20% off. By taking this approach, you will win business sooner than it is \u201cup\u201d while cultivating a much healthier 30\/60\/90 day funnel.<\/p>\n This is the Jedi move for your long game. This is about recognizing that your value proposition is you and your ability to bring people together, solve problems, and give back. All of these actions build your reputation \u2014 a highly overlooked piece of the puzzle for long-term sales success<\/a>. Start building a reputation you can be proud of and your prospects feel honored by.<\/p>\n","protected":false},"excerpt":{"rendered":" No matter what industry you\u2019re in, every business follows the same basic sales stages to close deals. Having this process down pat ensures you\u2019ve got a clear and consistent method that nurtures leads into sales. A sales cycle is the process that your company undertakes when selling a product or service to a customer. It’s …<\/p>\n","protected":false},"author":3,"featured_media":3167,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[5],"tags":[],"jetpack_featured_media_url":"http:\/\/i2.wp.com\/kmbrian.com\/blog\/wp-content\/uploads\/2019\/10\/How-to-Rock-the-7-Sales-Cycle-Stages-in-2020-header-1.jpg?fit=1138%2C493&ssl=1","yoast_head":"\r\n\n
Why Should I Have a Sales Cycle Process?<\/h2>\n
The Seven Stages of the Sales Cycle<\/h2>\n
\n
<\/p>\n
Steps of a Sales Process<\/h2>\n
#1 \u2013 Prospecting: Find Your Dream Client<\/h3>\n
1. Creating and Using an ICP<\/h4>\n
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2. Identifying Potential Leads<\/h4>\n
3. Initial Qualification<\/h4>\n
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#2 \u2013 Make Contact: Reach Out and Say Hello
<\/h3>\n
1. Identifying the Best Method<\/h4>\n
2. Execution<\/h4>\n
#3 \u2013 Qualify Your Prospect: Learn About Their Goals and Challenges<\/h3>\n
#4 \u2013 Nurture Your Prospect: Be a Reliable Resource<\/h3>\n
#5 \u2013 Present Your Offer: Provide Them a Solution
<\/h3>\n
#6 \u2013 Overcome Objections: Justify How Your Offer Is Their Best Option<\/h3>\n
#7 \u2013 Close the Sale: Thanks for Doing Business<\/h3>\n
1. Sealing the Deal<\/h4>\n
\n
2. Follow-Up<\/h4>\n
Best Practices for Creating Your Sales Process<\/h2>\n
Start with the customer in mind, not the tools
<\/h3>\n
\n
\n
Map your actions to the customer\u2019s journey
<\/h3>\n
\n
Map your actions to the tools needed to execute them
<\/h3>\n
\n
\n
Measure and improve over time
<\/h3>\n
\n
\ni.e. Out of your call attempts, how many conversations are you having with the intended contact?<\/li>\n
\ni.e. Out of the emails you\u2019re sending, how many prospects respond positively?<\/li>\n
\ni.e. Out of your first conversations, how many convert to a next sales conversation (meeting\/demo)?<\/li>\n
\ni.e. Out of your next sales conversations, how many become a qualified sales opportunity?<\/li>\n
\ni.e. Out of your qualified sales opportunities, how many become a customer?<\/li>\n<\/ul>\nHow to Improve Your Sales Process<\/h2>\n
\n
1. Mindset
<\/h3>\n
Take 30\u201360 minutes in the morning and invest it in yourself.<\/h4>\n
Use your lunch break to connect with people on a deeper, more meaningful level.<\/h4>\n
Educate yourself in a subject that you love.<\/h4>\n
2. Prospecting<\/h3>\n
Start integrating your story into your sales pitch<\/a><\/h4>\n
Listen more than you speak<\/h4>\n
Use a first touch piece<\/h4>\n
3. Pipeline
<\/h3>\n
Redefine your territory\/list<\/h4>\n
Create a hybrid outlook<\/h4>\n
Build community<\/h4>\n