It is widely believed that sales cycle and pipeline management are closely related topics. Both of them are at core of any system for maintaining a control over the sales, selling operation and also for producing sales prediction that are not just reliable and also predictable to make any business profitable. Although, there will be few quick wins that can be made from a strong review of the present pipeline but the long term solution will become available only when a time tested approach is used towards sales cycle management.
Curtailing the sales cycles
It is a known fact that it is not possible to manage something which cannot be measured. So, it is not possible to shorten what cannot be measured.
The sales cycle should display the essential stages in the sales and selling processes which will be able to define the way your company’s products/services are unveiled in the market. The process is required to offer a seamless journey from selecting of a suspect via bidding for a particular deal. It also needs a handover process between the stages on the basis of meeting the pre-defined qualification norms. For instance, no company should kick off the proposal stage till a lead has been qualified as having the necessity, authority, will and also funds to purchase a solution or service.
When too much has been wasted on the proposals that the leads do not need or stalled proposals are considered as the possible cause for the prolonging of sales cycles.
The sales cycle stages (which comprise of the qualification criteria for making progression between them) can be easily made part of the CRM design. It will help enable everyone engaged in sales and selling process to offer meaningful data input to a CRM but most importantly to bag benefits from the details the CRM will offer back to them.
Giving a proper definition to the ‘correct’ timing for a particular stage in the cycle will be coming from the practical experience and observations made. This should not be decided on the basis of theory of hope since it can cause disappointment.
So, the most relevant question which arises is how can a company shorten the sales cycle?
- It is very important to make sure that the cycle is complete with all the defined stages and also timed at the same time. Review all these stages for ensuring that there is no presence of any wasteful actions or bottlenecks.
- Giving a proper definition to the qualification criteria when the varied stags are being crossed.
- Defining the measurement points for setting up relevant ratios and also integrating them into the CRM.
Managing the sales cycle, not just the sales activity, making sure that every stage is completed before proceeding to the next. Now, by taking a close look at the procession of every stage and also the cycle as a whole, it becomes clear where to place your attention.
In the past, there has been an instance, where attempts were made to lower the sales cycle and it led to rise in the deals lost, which is again not a favorable option. Every company or business should aim for optimum time for the cycle in place of an arbitrary ‘short’ goal.
Pipeline management
A sales pipeline needs to be developed to track potential and individual opportunities as they move ahead via the varied stages of the sales cycle. So, how many stages are required will depend on the nature and complexity of the business.
One of the major building blocks for a successful sales cycle are that can be termed as qualified, prospects and also clients. Once they have been established as clients, they will be the one who will be generating business opportunities which is required to be tracked via the pipeline as well. By keeping a track of the clients’ developments and also the progress of opportunities, it becomes possible to bag benefit of the important indicators.
Making transition between the varied stages needs to be carried out in a carried way on the basis of the rising levels of understanding and also knowledge about the prospective clients’ position. The actions related to leads should be driven by status, which displays where the prospect is in their purchasing cycle and not where you are in the selling cycle.
It is believed that managing the pipeline is the management of the progress of contacts and opportunities both. Realizing the ‘purchasing state’ of the potential client helps to measure or judge the probabilities which generate your sales prediction for the present and also the upcoming periods. The probabilities need to comprise of timing, value and also likelihood.
Only a CRM will prove helpful in offering the details needed to monitor and also manage the position of every item present in the pipeline.
The article is also available at http://www.basearticles.com/Article/27431/Knowing-why-companies-need-efficient-sales-cycle--pipeline-management.html
It is a known fact that it is not possible to manage something which cannot be measured. So, it is not possible to shorten what cannot be measured.
The sales cycle should display the essential stages in the sales and selling processes which will be able to define the way your company’s products/services are unveiled in the market. The process is required to offer a seamless journey from selecting of a suspect via bidding for a particular deal. It also needs a handover process between the stages on the basis of meeting the pre-defined qualification norms. For instance, no company should kick off the proposal stage till a lead has been qualified as having the necessity, authority, will and also funds to purchase a solution or service.
When too much has been wasted on the proposals that the leads do not need or stalled proposals are considered as the possible cause for the prolonging of sales cycles.
The sales cycle stages (which comprise of the qualification criteria for making progression between them) can be easily made part of the CRM design. It will help enable everyone engaged in sales and selling process to offer meaningful data input to a CRM but most importantly to bag benefits from the details the CRM will offer back to them.
Giving a proper definition to the ‘correct’ timing for a particular stage in the cycle will be coming from the practical experience and observations made. This should not be decided on the basis of theory of hope since it can cause disappointment.
So, the most relevant question which arises is how can a company shorten the sales cycle?
- It is very important to make sure that the cycle is complete with all the defined stages and also timed at the same time. Review all these stages for ensuring that there is no presence of any wasteful actions or bottlenecks.
- Giving a proper definition to the qualification criteria when the varied stags are being crossed.
- Defining the measurement points for setting up relevant ratios and also integrating them into the CRM.
Managing the sales cycle, not just the sales activity, making sure that every stage is completed before proceeding to the next. Now, by taking a close look at the procession of every stage and also the cycle as a whole, it becomes clear where to place your attention.
In the past, there has been an instance, where attempts were made to lower the sales cycle and it led to rise in the deals lost, which is again not a favorable option. Every company or business should aim for optimum time for the cycle in place of an arbitrary ‘short’ goal.
Pipeline management
A sales pipeline needs to be developed to track potential and individual opportunities as they move ahead via the varied stages of the sales cycle. So, how many stages are required will depend on the nature and complexity of the business.
One of the major building blocks for a successful sales cycle are that can be termed as qualified, prospects and also clients. Once they have been established as clients, they will be the one who will be generating business opportunities which is required to be tracked via the pipeline as well. By keeping a track of the clients’ developments and also the progress of opportunities, it becomes possible to bag benefit of the important indicators.
Making transition between the varied stages needs to be carried out in a carried way on the basis of the rising levels of understanding and also knowledge about the prospective clients’ position. The actions related to leads should be driven by status, which displays where the prospect is in their purchasing cycle and not where you are in the selling cycle.
It is believed that managing the pipeline is the management of the progress of contacts and opportunities both. Realizing the ‘purchasing state’ of the potential client helps to measure or judge the probabilities which generate your sales prediction for the present and also the upcoming periods. The probabilities need to comprise of timing, value and also likelihood.
Only a CRM will prove helpful in offering the details needed to monitor and also manage the position of every item present in the pipeline.
The article is also available at http://www.basearticles.com/Article/27431/Knowing-why-companies-need-efficient-sales-cycle--pipeline-management.html
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