‘People buy from People’

Sales Cycles 101

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Launch48 | Welcome

‘Don’t find fault, find a remedy. Anybody can complain’Henry Ford. Founder, Ford

• Understand sales cycles• Understand sales funnels• Understand sales metrics

Aim

Not going to learn

- Sales techniques- Closing questions- NLP- Body language- Parroting- Yes questions

- Sales obstacles

‘If you’re building a product, you can’t be afraid of hearing criticism about it.’Kyle Bragger. Co-Founder, Forrst

Sales Team

Potential CustomersTarget MarketTarget Demographic

The Sales Battle

Potential CustomersTarget MarketTarget Demographic

Sales Team

Marketing Team

Who is in your sales team?

Everybody

People buy from people

People like to buy they don't like to be sold to

Sales Truisms

Sales cycle stage 1

• Lead sources• Database• Scraping (web, linkedin, twitter, yellow pages etc)• Direct enquiries

• Lead generation• Cold calling• Advertising• Traditional - print• Smart – digital

• Campaigns

Prospect forLeads

Sales cycle stage 2

Qualify LeadProspect forLeads

- Do they want what we are selling- Are they in our target demographic- Can they afford to pay

1st Meeting

- Further qualifying of lead- Establishing credibility

Prospect forLeads

Qualify Lead

Sales cycle stage 3

Sales cycle stage 4

Prospect forLeads

Qualify Lead Proposal1st Meeting

- Continue to establish credibility- Provide a price/quote- Provide a call to action

Sales cycle stage 5

Prospect forLeads

Qualify Lead Proposal1st Meeting 2nd Meeting

- Continue to establish credibility- Deal with any sales objections

Sales cycle stage 5

Prospect forLeads

Qualify Lead Proposal1st Meeting 2nd Meeting

Close Deal

- Sign the contract- Hand customer over to operations

Customer sales journey

Prospect forLeads

Qualify Lead Proposal1st Meeting 2nd Meeting

Close Deal

Customer sales journey

Prospect forLeads

Qualify Lead Proposal1st Meeting 2nd Meeting

Close Deal

Lost Sale

Customer sales journey

Prospect forLeads

Qualify Lead Proposal1st Meeting 2nd Meeting

Close Deal

Lost Sale

Example sales pipelineCustomer Value Units

Smith & Sons £5,600 465

PartyBus LLP £25,000

Champagne Ltd

£12,000 1115

Gonebakrupt Ltd

£6,700 823

Total £49,300 2403

Customer Stage Value Units

Smith & Sons

1st Meeting £5,600 465

PartyBus LLP

Enquiry £25,000

Champagne Ltd

2nd Meeting £12,000 1115

Gonebakrupt Ltd

Quote Sent £6,700 823

Total £49,300 2403

Customer Stage Value Units Probability

Smith & Sons 1st Meeting £5,600 465 20%

PartyBus LLP Enquiry £25,000 10%

Champagne Ltd

2nd Meeting £12,000 1115 60%

Gonebakrupt Ltd

Quote Sent £6,700 823 30%

Total £49,300 2403

Customer Stage Value Units Probability

Probability

Revenue

Smith & Sons

1st Meeting

£5,600 465 20% £1120

PartyBus LLP

Enquiry £25,000 10% £2500

Champagne Ltd

2nd Meeting

£12,000 1115 60% £7200

Gonebakrupt Ltd

Quote Sent

£6,700 823 30% £2010

Total £49,300 2403 £12,830

Customer Stage Value Start Date

End Date

Length days

Smith & Sons

1st Meeting

£5,600 1/9/12

PartyBus LLP

Enquiry £25,000 5/9/12

Champagne Ltd

Closed £12,000 25/08/12 25/09/12 30

Gonebakrupt Ltd

Closed £6,700 3/7/12 17/08/12 45

Total £49,300

Sales pipeline• Tells us what stage potential customers are at in

the sales cycle• Tells us the probability revenue for this month• Tells us how long it takes from start to finish

(Sales cycle length). We can calculate an average

• Tells us our average deal size

What don’t we know?• How many of our qualified leads get to close?• Or how many who start the journey finish it ?

Qualify Lead 1st Meeting

Prospect forLeads Proposal 2nd Meeting

Close Deal

Lost Sale

Sales funnelLead Generation

1st Meeting

Proposal

Qualified Leads

2nd Meeting

Closed Deal

Sales funnelLead Generation

1st Meeting

Proposal

Qualified Leads

2nd Meeting

Closed Deal

Average SalesCycle

35 Days

Stage Number

Qualified Lead 35

1st Meeting 8

Proposal 4

2nd Meeting 2

Closed 1

Tracked over a month

= 50 Input= 1 Output

So 50:1 (closure ratio)

Exercise - Facts- It is 25th July- Average deal size is £2,000- Average sales cycle length is 35 days- Your closure rate is 50:1- The current pipeline has a probability revenue of £10k- Your revenue target for next month is £20k

Exercise questions

• How many prospects do you need to meet your revenue target for next month?

• Can you hit your target?

sales is not luck it is a process that can be tracked and

monitored

What we have learnt• Sales needs to be supported by marketing• Sales Cycle stages• Sales Funnels• Sales Metrics

• Deal closure probability• Deal revenue probability• Sales Cycle average length• Closure ratio• Average deal size

‘Don’t let people tell you your ideas are stupid - if you’re really passionate about something, find a way to build it.’Dennis Crowley. Co-Founder, Foursquare

Danke.Grazie.Shukran.Merci.Takk.Xie xie.Toda.

Thanks!

@launch48Choose your journey.

Fin | End