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- What is a sales cycle?<\/a><\/li>\n\n\n\n
- Why is a sales cycle important?<\/a><\/li>\n\n\n\n
- What are the 7 stages of the sales cycle?<\/a><\/li>\n\n\n\n
- Sales cycle best practices<\/a><\/li>\n\n\n\n
- Sales cycle management: How software can help<\/a><\/li>\n<\/ul>\n\n\n\n
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\n\t\t\t\t\tLearn More<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t![\"\"](\"https:\/\/www.salesforce.com\/eu\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-one.png\")
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\n\t\t\n\t<\/div>\n\n\n\nWhat is a sales cycle?<\/h2>\n\n\n\n
A sales cycle is the collection of sequential stages sales reps follow when converting a prospect into a customer. Think of it like the structure of a deal \u2014 the building blocks, like lead qualification and sales calls, that need to be stacked in a specific order so it\u2019s possible to drive deals to close. <\/p>\n\n\n\n
The goal of a sales cycle is to ensure reps are uncovering customer needs and resources they can map to product solutions before ever making a pitch. Sure, every rep wants to win another deal, but first you have to find a mutual fit between seller and buyer. If you don\u2019t have that fit, you don\u2019t have a deal.<\/p>\n\n\n\n
The terms \u201csales cycle\u201d and \u201csales process<\/a>\u201d are similar, but there\u2019s one important difference. A sales cycle is the \u201cwhat\u201d and a sales process is the \u201chow.\u201d A sales cycle describes the steps from lead to nurture to close<\/a>, and a sales process describes your methodology and strategy for getting there effectively.\u00a0<\/p>\n\n\n\n
Why is a sales cycle important?<\/h2>\n\n\n\n
A well-defined sales cycle has two key benefits. First, it helps reps take the right actions at the right times, delivering helpful information and resources to prospects when they need them most. This advances the deal to close. Second, having set stages for every sale removes ambiguity and indecision about what step to take next, allowing reps to focus on building relationships.<\/p>\n\n\n\n
\u201cWhen you\u2019ve really got the stages in the right order in your sales cycle down, it frees you up to be connected with your prospect in the moment,\u201d said Elyse Archer,<\/a> CEO and founder of She Sells.<\/p>\n\n\n\n
Without a sales cycle in place, reps run the danger of overwhelming prospects with too much information all at once. Can you imagine getting an email from a sales rep with a pile of links \u2014 for a demo, a datasheet, a product guide, and a pricing list? No thanks.<\/p>\n\n\n\n
A sales cycle stops reps from playing all their cards at the same time, and guides them to build the relationship one small step at a time. Instead of sending that big scary email, a sales rep following the sales cycle might do this: Reach out to a target prospect on Linkedin, mention a mutual contact to build trust, and ask the prospect to chat over coffee to understand their business better. When they meet, the rep listens intently and asks thoughtful questions to understand the prospect\u2019s pains and goals. This builds the kind of relationship that can\u2019t be forced with a shortcut. That\u2019s the kind of relationship that ends in a sale.<\/p>\n\n\n\n
What are the 7 stages of the sales cycle?<\/h2>\n\n\n\n
The sales cycle has seven stages, from customer research to close. While the stages in the cycle may vary slightly depending on your industry, the essential framework is the same. The key is following your cycle stages in order, using best practices in each stage to ensure deals move quickly to close.<\/p>\n\n\n\n
Here\u2019s a closer look at each sales cycle stage:<\/p>\n\n\n\n
1. Customer research<\/h3>\n\n\n\n
I often hear that prospecting is the first stage in the sales cycle. That\u2019s a big mistake. If you start by doing customer research, you\u2019ll be able to find and focus on the most promising prospects instead of chasing leads that go nowhere.<\/p>\n\n\n\n
To guide your research, define your ideal customer (also known as a buyer persona<\/a>). This includes demographic traits like industry and business size, and psychological ones, like the motivations and challenges of target decision-makers. <\/p>\n\n\n\n
Take a look at the characteristics of past customers to get this started, then get additional insights from online research. Set up Google alerts <\/a>for headlines about companies or individuals that mirror existing customers. Read headlines about target industries in trade publications. Track relevant industry keywords on LinkedIn. All of this will help you paint a better picture of what your ideal customer needs, and where you find them.<\/p>\n\n\n\n
2. Prospecting<\/h3>\n\n\n\n
After doing your customer research, you can start prospecting.<\/a> This is when you reach out to the people or companies that match your buyer persona.\u00a0<\/p>\n\n\n\n
There are a lot of different ways to make that first prospecting connection \u2014 emails, cold calls<\/a>, videos, events, and customer referrals. And then, of course, there are social media platforms like LinkedIn.<\/p>\n\n\n\n
Start by following companies that fit your ideal customer profile. Then, look for contacts within that company and follow them on the social platforms they use most (likely LinkedIn). Comment on, like, and share their posts to show you\u2019re interested. You can also catch their eye by posting useful content that addresses needs articulated in their posts. If you get a follow back or engagement after you\u2019ve posted, shared, or liked their content, then send them a message introducing yourself and your company.<\/p>\n\n\n\n
Another simple, powerful prospecting strategy is to do a Google search with their name and company to see if they\u2019ve been featured in any articles, videos, or podcasts. Read or listen to whatever you find so you can identify a need or pain point you can use in your prospecting outreach<\/a>. <\/p>\n\n\n\n
A word of warning: Make sure your messages are tailored to each prospect. Don\u2019t rely on the standard \u201cHey, let\u2019s talk!\u201d Stand out by saying something relevant, like: \u201cI read your post about the new initiative you led last quarter \u2013 how did that turn out?\u201d Your prospects will be more likely to respond if you personalise your communication.<\/p>\n\n\n\n
3. Qualification and discovery<\/h3>\n\n\n\n
You\u2019ve made a connection. Now, you need to determine whether the prospect has a problem you can help solve and the resources to purchase your solution. This vetting process is commonly referred to as lead qualification. <\/p>\n\n\n\n
After making introductions, ask to set up a call to learn more about the prospect\u2019s business, needs, and goals. This is called a discovery call. You\u2019re trying to determine whether they\u2019re a good fit \u2014 based on demographic traits (company size and industry), the problem they want to solve, and whether they have decision-making authority.<\/p>\n\n\n\n
If the lead isn\u2019t a fit, remove them from your list of prospects for now. Keep in mind, however, that just because they\u2019re not qualified now, doesn\u2019t mean they won\u2019t be down the road. Hold onto their contact information and be prepared to reach out again if their role or company changes.<\/p>\n\n\n\n
If you get a string of \u201cyesses,\u201d dig in to learn more about their business. What are their current pains and how your product can help? What does this problem cost the company? What happens if they do nothing? What solutions are they considering? <\/p>\n\n\n\n
Also, be sure to identify any decision-makers who need to weigh in on the deal. If there are stakeholders that you need to meet, ask for an introduction and do discovery with them as well. This is called \u201cmulti-threading\u201d and is key for larger deals where many stakeholders are involved. <\/p>\n\n\n\n
4. Presentation and demo<\/h3>\n\n\n\n
You\u2019ve uncovered a bounty of pain points and needs that align seamlessly with your solution. Hurray! Ask to set up time with your prospect and key stakeholders to walk them through your solution with a sales presentation<\/a> or product demo<\/a>.<\/p>\n\n\n\n
Be sure to tailor your presentation to make it relevant, personal, and engaging. For example, match your language to the language of your prospect\u2019s specific industry and business. Show how your product will work in their unique environment. And describe how your solution alone is positioned to solve the problems you uncovered during in the discovery phase.<\/p>\n\n\n\n
Fair warning: You should eventually expect to hear objections. These can be about topics such as price (\u201cThe cost is too high\u201d), timing (\u201cWe\u2019re not ready to decide yet\u201d), or lack of urgency (\u201cWe\u2019re sticking with what we have.\u201d). This is totally normal. To overcome an objection, ask follow-up questions to understand the root of their concerns, and respond with details that address their concerns. (Our article on objection-handling techniques<\/a> has more guidance.)<\/p>\n\n\n\n
5. Proposal<\/h3>\n\n\n\n
You\u2019ve led a successful demonstration and the prospect wants to move forward. In a small business, that might be the end of the sales cycle \u2013 you close the deal right then and there. But in a more complex sale, you\u2019re not over the last hurdle. You still need to draft a formal proposal to get buy-in from all stakeholders and decision-makers, especially those in finance who cut the checks.<\/p>\n\n\n\n
Because your quote<\/a> needs to make a business case to these executives, it should cover the total cost of your solution, including initial implementation, onboarding, and ongoing maintenance. Your quote should also show a clear return on investment (ROI).<\/p>\n\n\n\n
Three critical questions to answer in your proposal are: Why does the customer need to change? Why now? What\u2019s the financial impact? I recommend showing the cost of delay, too, which shows the monthly cost of waiting and can drive urgency. <\/p>\n\n\n\n
6. Negotiation<\/h3>\n\n\n\n
After reviewing the proposal, stakeholders will often want to negotiate a better price. In enterprise companies, this usually happens with a procurement or purchasing department that\u2019s set up to negotiate directly with vendors. The legal department will also scrutinise your deal and the terms of the agreement.<\/p>\n\n\n\n
That\u2019s why I\u2019ve emphasised the need to show an ROI earlier on. It\u2019s how you can win over the CFO<\/a> and the legal team. <\/p>\n\n\n\n
Even if ROI is clear, the prospect might make the case for a lower price by comparing your cost to the cost of other solutions on the market, the cost of their current solution, or their budget. Be prepared to address any discrepancies here, and come with a discount or price cut option in your back pocket to sweeten the deal (more on that below). <\/p>\n\n\n\n
If procurement is delaying the deal or asking for unreasonable concessions, lean on stakeholders who are completely bought in to help expedite things on their end.<\/p>\n\n\n\n
7. Close the deal<\/h3>\n\n\n\n
Many people say closing is the hardest part of the sales cycle, but it doesn\u2019t have to be. If you\u2019ve done everything else right \u2013 there\u2019s a fit, you\u2019re solving a problem, you can prove ROI, you have the right people engaged \u2013 closing the deal is the easiest part of the whole process. You really don\u2019t have to close very hard if you\u2019re helping the business.<\/p>\n\n\n\n
But let\u2019s say you\u2019ve presented the deal paperwork, and the signature line is still blank. There are a few closing techniques<\/a> to seal the deal. <\/p>\n\n\n\n
For example, there\u2019s \u201cThe Take Away Close\u201d where you suggest that your prospect may not qualify for your solution if circumstances change. This is reverse psychology and it works because people want what they can\u2019t have. Then there\u2019s the \u201cAlternative Choice Close\u201d where you offer two payment options (ex. a 60-month and a 36-month term) and ask them which one they prefer. This gives them two options for saying yes instead of an option for saying no. Finally, there\u2019s \u201cThe Potential Cost Close\u201d where you hammer on the cost of not<\/em> buying your solution.<\/p>\n\n\n\n
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\n\t\t\t\t\tGet Started<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t![\"\"](\"https:\/\/www.salesforce.com\/eu\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-nine.png\")
\n\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t<\/div>\n\n\n\nSales cycle best practices<\/h2>\n\n\n\n
The good news is that you don\u2019t reinvent the sales cycle wheel, because there are tried-and-true best practices you can follow. These include measuring and adapting to the data, using relationship-selling techniques, and always coming back to your sales plan. Let\u2019s take a look.<\/p>\n\n\n\n
1. Make prospecting easier by building your personal brand<\/h3>\n\n\n\n
\u201cWhen you position yourself as an expert in your space, prospects <\/a>come to you,\u201d Archer said. \u201cThat means you can cut down on outreach, dramatically shortening the sales cycle.\u201d This worked so well for Archer that shortly after she started her sales coaching business, she had a steady stream of inbound clients reaching out for help.<\/p>\n\n\n\n
To build a brand, start with a list of the questions your target customers would have about your product, and answer those questions publicly \u2013 in LinkedIn posts, YouTube videos, podcasts, or blog posts. This builds authority and sets you up as a thought leader. Prospects will see your content, reach out for more information, and hopefully convert to customers. <\/p>\n\n\n\n
\u201cI make a list of 52 questions my ideal customers would have, related to the solution I provide,\u201d Archer said. \u201cThen once a week, I go on social media and answer one question. That\u2019s a year\u2019s worth of content mapped out for you, and you can answer those questions in 20 minutes.\u201d<\/p>\n\n\n\n
2. Identify easy-win prospects from previous sales cycles<\/h3>\n\n\n\n
Knowing your target audience is a critical first step to successful prospecting, but you can take it a step further. Examine your sales over the past year to see which prospects sailed quickly and easily from early conversations to close. What qualities, needs, or interests do they share? Did seasonality, budget, or market conditions create a sense of urgency? When you can identify these shared characteristics, you can target them in future prospecting and move new deals more quickly to close.<\/p>\n\n\n\n
3. Maintain good mental health so engaging is easy<\/h3>\n\n\n\n
What does mental health have to do with optimising your sales cycle? Everything \u2014 because if you don\u2019t take care of yourself first, then improving your sales cycle \u2014 including the discipline to push through the steps above and the presence to engage with prospects \u2014 won\u2019t matter. You’ll stall out.<\/p>\n\n\n\n
I learned this the hard way back in 2017, when I hit $5 million in sales and was the top seller at Salesforce. My sales had never been better, but my mental health had never been worse. That was the moment when I learned that I had to fix myself before I could enjoy the success from my sales. I prioritised self-case for the first time in my life, and what I learned is that I could be happy no matter how much or how little I sold.<\/p>\n\n\n\n
Over half (63%) of sellers say they struggle with mental health, according to the State of Mental Health in Sales Report<\/a>. If you\u2019re one of them, know that you\u2019re not alone. Read my tips<\/a> for improving mental health in sales. <\/p>\n\n\n\n
Sales cycle management: How software can help<\/h2>\n\n\n\n
No seller can master sales cycle management without the help of technology. And why would you want to? Today\u2019s tools are here to make your life easier, with a CRM to collect customer data in one place, sales automation to take non-selling work off your plate, and AI to inform and assist you throughout the sales cycle. Here\u2019s what to look for in sales cycle management software:<\/p>\n\n\n\n
A CRM<\/a>:<\/strong> Customer relationship management software helps you track and act on customer data from a single source of truth. It does this by logging and updating important information about your customers as you sell and close, so you always have data at your fingertips, ready to pick up each conversation where it left off.<\/p>\n\n\n\n
Automation<\/a>: <\/strong>Sellers spend 72% of their week<\/a> on non-selling tasks. Let automation do that work for you, freeing up more of your time to sell. For example, an activity management tool can automatically capture emails, events, and other types of engagement activities directly in the CRM. <\/p>\n\n\n\n
- Why is a sales cycle important?<\/a><\/li>\n\n\n\n
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