2.01 Understand sales activities and show command of their nature and

scope

Performance Indicator:Explain the impact of sales cycles

Definition

• Sales cycle - The course of time between the initial contact being made with a customer, the identification of services or goods to be procured, the acceptance of the intended purchase, and the transaction that completes the sale.

Factors that affect the length of sales cycles

• See article @ http://www.bizjournals.com/triad/stories/2001/08/13/smallb3.html

• See videos @– http://www.youtube.com/watch?v=ZmGVFIw0-Ss&feature

=related– http://www.youtube.com/watch?v=e6EDZhkoFgo– http://www.youtube.com/watch/v=zQM1b_DxGCo– http://www.youtube.com/watch/v=QW07ekpbjYI

• See video @ http://mystrategicplan.com/resources/how-length-of-sales-cycle-affects-sales-strategy-part-4-of-5/

Short sales cycles

Advantages• Customer takes fewer steps

before deciding to purchase

• Example: selling clothing

• http://go4funding.com/Articles/Sales-Cycle.aspx

Disadvantages• Fast-paced travel• Frequent presentations

Long sales cycles

Advantages• Marketing is targeted, short,

and to the point• Customers have no issues

with purchasing

Disadvantages• Customer takes more steps

before purchasing• More complex contacts to

keep organized• More paperwork &

correspondence• Time management is key• Example: selling a company

Actions salespeople can take to shorten the sales cycle

• Use testimonials

• Use case studies

• Use examples of the work you’ve done

Actions salespeople take that lengthen the sales cycle

• Identify key points and sell to those• Prospecting– Selling = getting an appointment to discuss– Get the small wins to ensure a BIGGER win later

on• Be informative and detail-driven• Ensure ease of potential clients ability to

obtain information • www.thepedestalgroup.com/sales-cycle