The 7 Stages of the Sales Cycle (Part-1)

[Doha]

No matter what you're selling, every sale follows roughly the same pattern. It's a rare sale that doesn't include each of these steps in one form or another.

In order to succeed in sales you need to master each one of these stages. If you're weak in one or more areas, you might survive as a salesperson but you won't thrive.

1. Prospect for Leads

You can't prospect effectively without knowing all about your product(s). If you don't understand the product, how could you know who will want to buy it?

Prospecting is the first step in the sales cycle. But that doesn?t mean that the first thing you should do is grab the yellow pages and start dialing. A little pre-prospecting work will help you come up with leads that are actually compatible with your product or service.

Identify Mr. Prospect

The first step in finding the ideal prospect is defining who that mythical person might be. If you?ve been selling the same products for a while, you probably have an idea of what to look for based on your successful sales in the past ? all you need to do is sit down with a pen and a piece of paper and write down a list of those desirable qualities. If you?re new to sales or to the particular product you?re trying to sell, you may need to talk with some of your colleagues. That might include other salespeople, your sales manager, and even people in other departments such as customer service or marketing.
Choose a Strategy

Let?s say you?ve done the above exercise and determined that your ideal client is married, in his mid-thirties, has an annual income of $100,000 or more, owns his own home, and has an executive-level job. Now you can start thinking about where you would find such a person. The usual rule with lead generation, as with most aspects of sales, is that you either need to invest lots of time or lots of money to do it well.

Investing Time

If you decide to invest time in getting leads, that means research. For the above example of the perfect prospect, you can start by identifying the most affluent neighborhoods in your area. Then you can prepare a sales letter and mail or hand-deliver it to those locations. Or you can simply try going door-to-door. If online sales are your forte, you can identify websites where your prospects might hang out, like the local homeowner?s association website, and buy ad space or post your information on the site. Another option is to become a member of organizations where your prospects can be found... local churches, chambers of commerce, the yacht club, the high-priced gym, etc. That gives you the opportunity to meet and greet prospects in an informal setting. Just be careful not to get too pushy or your tactics will backfire.

Investing Money

If you?d prefer to invest money to find leads, you can buy existing lead lists. Be careful to work with a reputable list broker, such as Dun and Bradstreet ? otherwise you may find you?ve just wasted your money. You can also try buying leads directly from the source, such as a magazine that your prospects are likely to read. Finally, you can buy ad space in those magazines to get prospects to come to you.

2. Set an Appointment

It's time to use those leads you collected in stage 1. Many salespeople prefer to cold call over the phone, but you can also call in person, send email or even mail out sales letters.

"Cold calling is a little easier with a good headset"

Cold calling: the dreaded sales technique that can make even hardened salespeople shake in their shoes. In fact, cold calling doesn't have to be an ordeal. Here's how to cheerfully turn your cold leads into warm prospects.

Get in Touch With the Decision Maker

In business-to-business sales you will frequently have to work your way through one or more people to reach the appropriate decision maker. It may take multiple calls before you even find out who your target is.

Often you will have to convince the ?gatekeeper? - the person who protects the decision maker ? to let you through. Don't think of the gatekeeper as an enemy. He or she is a potential ally, who can provide valuable information about the decision maker.

Don't ever lie to the gatekeeper about why you're calling or try to use trickery. Trust is a prerequisite for a successful sale, and by lying to the gatekeeper you violate your prospect's trust right off the bat. Instead, tell the gatekeeper what you're selling and ask who would be responsible for purchasing that product or service.

Sometimes the best approach is to come right out and ask the gatekeeper for his or her assistance ? many people instinctively respond to a plea for help.

Sell the Appointment

The point of your call is not to sell your product but to get an appointment. You need to pique the decision maker's interest just enough that he or she wants to hear more.

Start by asking if it's a good time to talk; that shows that you respect your prospect's busy schedule. If they say they can't talk now, suggest another time and be specific ? don't say ?I'll call back later,? say ?I'll call back tomorrow at 9AM, if that's convenient for you.?

If the decision maker is willing to talk now, you need to get their attention quickly; the first few seconds of the conversation are critical. There are almost as many different approaches as there are salespeople, but here are a few possibilities:

    Make them laugh. You might say something like, ?Hi, my name is Jane Smith and this is a sales call. I know, you hate these, so I'm gonna be as brief as possible.? It's usually safe to make fun of yourself, but avoid making fun of other people or you might offend your prospect.

    Offer something valuable. When I was selling bank products, I would offer prospects a ?free financial review.? I'd meet with the prospect in their office, ask a few questions about their current bank products and advise them on the best use of their money. If you are selling a physical product, suggest a one-on-one demonstration.

    Solve their problems. Ask ?What is your biggest, most unsolvable problem?? Then list one or two ways that your product or service will help to solve it. This approach can require some pretty creative thinking, but if you come up with a good answer you are almost assured of getting the appointment.

End on a Positive Note

Once you've broken the ice and told the decision maker a little about your product, it's time to ask for the appointment. It is vital, it is critical, it is absolutely essential (am I stating this strongly enough?) to close the call assertively. It's unlikely that the prospect will be ready to ask you for an appointment, so you have to be the one to ask them.

Always use language that assumes they want to meet with you. Don't say ?Would you like to make an appointment?? Instead, say ?Are you available to meet next Thursday at 3PM?? By assuming the close you make it harder for the prospect to say no.

Throughout the course of the call, be courteous and project confidence. By being polite and respectful to everyone you encounter, you are showing them that you value their time. And if you aren't confident about yourself and your product, you can't expect your prospect to be confident about them either! Just remember that your product or service is going to help your prospects (even if they don't realize that yet), and act accordingly.

3. Qualify the Prospect

The qualification stage usually takes place at the appointment itself, although you can also qualify briefly during your initial contact. The idea is to confirm that your prospect is both able and potentially willing to buy your product.

Not everyone on Earth is a prospect for your product or service. If you're pitching to people who truly don't need or can't buy what you have to sell, you're wasting your time. So take a few minutes to qualify your leads before launching into a full-bore sales presentation.

Are They the Decision Maker?
The very first thing you should find out is whether the person you're talking to is authorized to buy from you. In B2B sales you may need to seek out a purchasing person, the department head, the office manager, or even the company owner. In B2C your prospect may need or want to share the decision with a spouse, parent or significant other.

What Do They Have?
Find out what the prospect already owns that's in the same category as your products, and get as much detail as possible. In other words, if you're selling cellphones, don't just ask if the customer already has a phone... ask questions like ?How long ago did you buy it? What model and manufacturer is it? Do you have other mobile devices (e.g. laptop, iPad)? Do you have a land-line phone as well??

How Do They Feel About Their Current Product?
Once you have the basic information about their current product, dig for what their likes and dislikes are about it. This information is incredibly useful when you reach the presentation phase, since you'll already know what their preferences are. For the cellphone example, you would ask questions like, ?What features do you use a lot? What features do you never use? Is the phone bigger or smaller than you'd like? How about the size of the keys (for non-touchscreen phones)? How's the reception from your home, work, etc.??

Are They Able to Switch?
Even if a prospect is interested in your product, they may not be able to buy right now. Most often that's a budget issue ? they simply can't afford to buy right now. Other times, it'll be something like a contract that hasn't expired yet or a key person who's out of town on vacation. So you need to ask a few time-qualifying questions like, ?How soon would you want to put this in place? If I show you how you can save money/save time/improve yourself/etc., would you be ready to buy today??

Is Your Product Really Better Than What They Have?
Let's be honest... sometimes the prospect already has something in place that works great for them, and buying your product really wouldn't benefit them. In that case, don't try to fast-talk or pressure them into buying from you. It's much better to confess, ?Mr. Prospect, I think that your current setup is just fine for you right now.? The prospect will appreciate your honesty and you'll have a great chance of making the sale later on, when their situation changes (e.g. their product breaks down or their current provider hikes the fees way up).

4. Make Your Presentation

The presentation is the core of every sales cycle, and it's probably where you'll invest the most preparation time. Keep in mind that you're not just selling your product... you are also selling yourself! You represent your company, so appearance counts.

According to psychologists, when most people are asked to rank their fears they put ?fear of public speaking? above ?fear of death.? In other words, if they're attending a funeral they'd rather be in the casket than giving the eulogy!

Any time you make a presentation ? whether it's to a prospective customer, the local Chamber of Commerce, or your CEO ? you need to plan ahead and know what you're going to do. Just having a game plan and doing a little rehearsing beforehand will make your presentation easier. Here are a few other tips to help you get the most from your presentations.

Do Your Research

Know what your audience is looking for, and tailor your presentation to fit. Not only will this interest your audience, it will add to your credibility if they know you've done your homework.

Look Professional

If you want your audience to take you seriously, you need to look serious. When in doubt, wear a suit. If the occasion is more casual, at least make sure you look pulled together ? not sloppy.

Get There Early

Plan your arrival so you'll be on time, allowing for possible delays such as traffic and construction. Few things give a worse first impression than making your audience wait for you.
Build Rapport

Find out who exactly will be at the meeting, and try to collect personal information about the major decision makers. The Internet makes this fairly simple. Don't just Google these folks; check out Facebook, LinkedIn, Twitter, etc. for more information. Knowing the CEO loves fly fishing gives you a great conversation point.
Set a Time Limit

As a rule of thumb, plan your presentation to last no more than sixty minutes, maximum. Tell your audience approximately how long you'll be talking, and stick to it.

Stand Up

Always give your presentation while standing ? it helps your energy level.
Check Your Volume

If you're speaking to a large room, confirm that everyone can hear you before you launch into your pitch.
Start with an Agenda Statement

An agenda statement is a one-sentence summary of your presentation. It gives you control of the presentation in a friendly way, and makes a great first impression.

Give Specific Examples

Don't just say ?If you buy my product, you'll save money.? Instead, say ?Customers who use the LL4 model save an average of $1200 per year.?
Bring Case Studies / Testimonials

Find an example of someone who did exactly what you're proposing, and tell their story. If you can't find anything that exactly matches, at least bring some testimonials from satisfied customers.