Sales cycles—or deal cycles—involve every step you take to move sales through the funnel. It begins with the first contact and continues through closing the deal and following up with buyers. Sales cycles usually involve a handful of steps. You find leads, qualify them, land a meeting, handle objectives, close the deal and then nurture your new client.
It’s helpful to examine your sales cycle to determine how you could potentially streamline processes. When deal cycles shrink, you can meet with more potential buyers, generate more leads and possibly close more deals, says Content Manager Dan Shewan.
The key is being smart about shortening your sales cycles. You don’t want to tarnish the sales experience or bypass your prospects’ needs. So, how do you do this? Keep reading this issue of Promotional Consultant Today, where we discuss Shewan’s actional tips for reducing sales cycles.
1. Showcase past clients. Have happy clients? Ask them for reviews or testimonials. Shewan says that genuine recommendations from satisfied customers are much more compelling than anything even the best sales rep could say. Whenever possible, use social proof to help shorten your deal cycles.
2. Use clear pricing. By being upfront with your pricing on your website, unqualified leads will naturally fall out of the sales cycle. It’s better to learn early on that your offering isn’t in their budget than to go through each phase of the sales cycle only to hit a pricing roadblock.
3. Call out potential issues. It may sound counterintuitive to spotlight weaknesses over strengths, but this is better for everyone in the long term. Uncover objections early during discovery, recommends Shewan. This way prospects who aren’t the best fit can move on to a different solution.
4. Clarify next steps. Another way to shorten sales cycles is to ensure everyone knows the next stage in the process. It may sound overly organized, Shewan adds, but it helps everyone on the team know the next action. You can see where the deal is at, but you should also know what comes next.
5. Don’t upsell too soon. Let potential buyers start off small. Don’t try to add on extra products or services they may not need right now. This makes the deal more affordable and gives them a chance to experience doing business with you. Once they start to see positive changes, they will likely be more open to longer contracts or trying different services.
6. Adjust your contract lengths. Shewan notes that some reps try to get prospects to agree to long contracts that favor their company. However, month-to-month agreements can help you increase your close rate. Try to be as client-friendly as possible when outlining your contracts—it can often help you shorten your deal cycles.
7. Keep your contracts simple. Lastly, send contracts that are straightforward and easy to understand. You don’t want to intimidate a potential buyer with dense legal jargon, says Shewan. When prospects are ready to sign, it isn’t the time to go over terms and conditions. Instead, it’s time to focus on what they’re buying and getting their signature.
If you haven’t evaluated your team’s sales cycle recently, take time to consider the points above. Whether you modify your contract terms or weave in more testimonials in your marketing materials, you can make adjustments that significantly impact the effectiveness of your sales efforts.
Compiled by Audrey Sellers
Source: Dan Shewan is a senior content manager who has created content for brands such as National Geographic and WGN America.
