There are basically two types of sales markets: B2B - Business to Business and B2C - Business to Consumer. The Sales Cycle is very different in each situation. This week, let's break down the sales cycle in the B2B category.
When you are selling from Business to Business, you are dealing with owners and decision makers. You need to assume that their SOPHISTOCATION LEVEL IS HIGH and they might have been BURNED BEFORE by salespeople promising what they couldn't deliver. Actually, that's the best approach with all prospective buyers in ALLsales. Don't expect B2B decision makers to open their arms to your prospecting call.
The CONSULTATIVE APPROACH gives you the opportunity to assess their needs and show them that you are trying to help them. How can you possibly suggest a solution when you aren't even aware of the challenges facing the business?
1. PROSPECTING: Cold call or warm call through referral or social media connection.
2. THE APPOINTMENT: This is where you conduct a thorough Needs Analysis to help them assess where the opportunities for growth/cost savings exist.
3. THE PROPOSAL: Based on the Needs Analysis. You need to tie the business needs to a solution you have to offer and explain why it makes sense. If you haven't done a detailed Needs Analysis you will be presenting blind with a low chance of getting the business, yet a high chance of annoying your potential buyer.
4. AN ACCEPTED DEAL: Signed or approved by email. Yes, confirmed by contract. Verbal approvals lead to miscommunication and write offs. If you value your relationship with your client, get them to sign before proceeding or approve the deal through email.
To measure prospecting efforts against sales achieved DIRECTLY is skipping the steps in the sales process. It will lead to frustration through lack of achievement and the chance that you might stop initiating relationships.
Would you expect your favourite football team to run the ball back for a touchdown EVERY TIME after a kick off? The job is to catch the ball and gain some yards to be in good field position. Then, move the ball down the field to place yourself in good scoring position. Then, Score points to put on the board. This has full application to the SALES PROCESS and makes it relatable.
Catch the Ball: PROSPECTING has you on the field. Catching secures the APPOINTMENT.
Gain some yards: If you can, develop some RAPPORT for the initial appointment.
Move the ball down the field: Do a detailed NEEDS ANALYSIS.
Score points: SECURE THE BUSINESS.
Measure your PROSPECTING efforts against your number of BOOKED APPOINTMENTS. Measure the number of BOOKED APPOINTMENTS against your number of PROPOSALS PRESENTED. Measure your number of PROPOSALS PRESENTED against your SECURED BUSINESS. Then, you can draw a connection between PROSPECTING and SECURED BUSINESS.
Admittedly, you won't earn a commision on anything BUT the last step of the sales process. Looking at it this way enables you to ANALYZE YOUR STRENGTHS and IDENTIFY YOUR AREAS FOR GROWTH in becoming better at the process. Every great football team has several athletes involved in the process. In Sales, YOU are the defence, offence and special teams. Your sales manager is the COACH.
It's not hard to UNDERSTAND what you need to do. It's tough to have the SELF DISCIPLINE to do it DAY AFTER DAY, sometimes without much in the way of results. If you need assistance, call, email me or comment. I'm here to help!
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Dave Warawa - PROSALESGUY
When are you going to do/share the article on B2C - Business to Consumer? I find the B2B very interesting and is looking forward to the B2C. Please let me/us know. Thanks, Dave!
