What is a sales cycle?
A sales cycle is a step-by-step process of closing a business deal. Although the exact process will vary from business to business, the basic steps are generally the same.
Why do you need a sales cycle?
A sales cycle gives you a template for what actions and language you should be using for each point of the sale. This ensures that you are getting the right message, in front of the right lead, at the right time. Going straight to pushing someone to a sale, when they are only just finding out about your company - and you may lose the sale. Same goes for if you reach out to them too late. Having an effective sales cycle in place makes sure that you are moving at a pace that your potential client is ready for.
What does an example sales cycle look like?
Here are four basic steps to get you started with a basic sales cycle:
You Can't Improve, if You Don't Know What's Wrong
It's important to find some way to measure what is working within your sales cycle, and what isn't. Keep track of what you are doing for each step of your cycle, and notice where your sales are doing well vs. where they are being lost. If you notice any particular trends within a particular stage - maybe it needs to be reevaluated with how it is handled. Over time, your sales cycle will likely continue to evolve as you test new strategies, or as your client's needs change.
So you want to close more sales deals?
Whether they know it or not, every sales team uses some sort of sales cycle. Understanding the stages and learning how to evaluate them are key to improving your sales team, and bringing in more business.