Almost all sales are closed after going through a predefined set of steps. That’s what we call a sales lifecycle.
As per stats, the average sales winning rate is just 21%. You must have a robust framework to guide the sales team to improve the retention and conversion rates. And that’s where the need for a sales management cycle comes in. Explore what is a sales cycle and the stages of the sales process.
Also Read: What is Customer Lifetime Value and why is it important?
What is a Sales Cycle?
The sales cycle refers to the sequence of steps that a sales executive follows to convert a lead. The main aim of the sales cycle stages is to close maximum leads. It is like a roadmap that guides your sales team to achieve their objectives.
7 Stages of the Sales Cycle
Sales cycle stages are not exactly the same for all businesses. It depends on your sales techniques and the complexity of the deals. However, here are 7 stages of the sales cycle commonly followed by many companies:
1. Research
Sales process steps start from deep-rooted research of the target audience. It helps you to narrow down and pinpoint the best prospects from a broad target audience base. For that, you need to explain who your perfect customer is. Outline all characteristics that you look for in a customer, like:
- The age range that aligns with your product.
- Geographic areas where your target audience resides.
- Expected income level of customers.
- Education background of the target audience.
If you want any references, take a look at your CRM. Analyze the demographics of your past customers to get an idea. Similarly, constantly watch relevant trade journals and research reports to know where to find your perfect customers.
2. Prospecting
Prospecting refers to the stages of the sales cycle where you reach out to the leads that match your requirements. Usually, companies run paid ads to generate leads. When they express interest in your product, you can get in touch with them. You can contact the prospects through various methods like calls, email, in-person meetings, etc.
Remember, you need not present your entire sales pitch now. At this stage, you are expected to introduce only the product and explain how it solves the pain points of the customers.
3. Lead Qualification
Now, it’s time to check whether the prospect has a genuine interest in your products. For that, you can place a discovery call. It is one of the most crucial stages in sales cycle, where you can check out if the lead is a good fit. Consider asking questions like:
- What challenges are you currently facing?
- What is your budget for the solution?
- What’s your timeline for solving the product?
- What are your biggest concerns moving forward?
Ask for any other stakeholders involved in the decision-making process and maintain contact with them, too. If you find that the lead is not that fit, don’t just remove them from the list. In the long run, they may need your product, and a simple retargeting call may help them convert.
4. Presentation
In the presentation stages of sales processes, you are expected to present your product in an engaging tone. You must conduct a customer behavior analysis to tailor your tone to the client instead of merely following a sales script. Focus on how it will solve the customer’s problems. Remember, it’s not just enough to make a presentation. You must create a full-fledged proposal highlighting the following things:
- Summary highlighting the value your product delivers.
- Key features of the product that are relevant to the customer.
- Case studies or testimonials from previous clients who have used your product to solve similar issues.
- Expected timeline for solving the problems.
- A clear breakdown of pricing along with the duration.
Always try to give a demo of how the product works, as it solves half the concerns of most customers.
5. Handle Objections
In most cases, your presentation won’t go as smoothly as you think. Usually, they get stuck in the sales cycle at some pushback from your prospects. Some of the most common objections may be:
- “It’s too expensive.”
- “I’m not sure we need it right now.”
- “We’re currently using {competitor}.”
- “We tried something similar before, and it didn’t work.”
The first step to solving the objections is to ask about the source of them. Listen to the customer’s views patiently and answer them to the point. Sometimes, you may even need to submit a refined proposal.
5. Closing
If you think objections are the last hurdle to closing your sales, then you have gone wrong. You have to face the negotiation stages of the sales cycle put forward by the customers to move forward. Almost all clients want to negotiate for a better price, no matter what product you offer. The best way to tackle this is by providing an exclusive discount coupon.
In fact, there are many closing techniques to help you seal the deal. You have interacted with the customer for days or even months. So, you now have a clear-cut knowledge of his pain points and nature. Make sure that you choose a suitable closing tactic based on that.
For instance, if you find that the customer is negotiating for a lower price just because of a lack of urgency, you need to try out something called summary closing. Simply recap the key points and features of the product to make them think that they need the product right now.
6. Get Referrals
Most professionals think that the sales process chart ends with closing the sales. Well, it’s absolutely wrong. There is an important stage to be covered: referrals. Most sales executives ask for referrals at the closing itself. However, the perfect time for referrals is when your product succeeds in addressing the pain points of your customers.
In fact, closing a deal is just the beginning. You may have to follow up with the client regularly to make sure that the product is solving the customer’s problems and that they are not facing any challenges.
Conclusion
Remember, there is no one-size-fits-all sales lifecycle. Your company’s sales cycle totally depends on the product and customers you deal with. However, one thing remains constant: the need for data management. You need to store and use the customer data effectively to personalize the interactions at each stage of the sales cycle.
Onstro CRM is an all-in-one business software solution that works for businesses of all sizes. You can manage all your leads and track their status on the cycle from a single platform. It also allows you to store all lead data to personalize the interactions for retargeting campaigns. Contact us now!
