6 steps and 5 tips to master your sales cycle

Understanding your company's sales cycle is essential because, to turn prospects into customers (and ideally into loyal customers), your sales staff need to use a well-honed strategy.

The sales cycle is an invaluable tool for determining the various stages involved in achieving the Holy Grail: closing a sale.

But what are they? Are there differences between B2B and B2C activities? And what actions and good practices need to be applied throughout the sales process to maximise your chances of achieving your objectives?

Sales teams, get ready to make your sales take off!

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What is the sales cycle?

Introduction to the sales cycle

The sales cycle is defined as the series of stages involved in turning a prospect into a customer. It is therefore a precise diagram, a methodology to be followed, enabling you to :

• frame and control your sales actions as effectively as possible ;
• evaluate your performance (for example, you can analyse the length of your sales cycle from one month to the next, or compare it with that of rival companies);
• detect any weaknesses and identify areas for improvement.

It is therefore important for each company to take the time to set up its own sales cycle, to "map" it, in order to determine the best approach to follow to achieve the ultimate goal: getting the sales contract signed!

The different types of sales cycle

The classic sales cycle is traditionally broken down into seven stages, which we will describe in more detail below.

However, many experts agree that there are four different types of sales cycle:

• The short sales cycle, or "one shot": this is most often used for products or services where the stakes are low, or where the sums involved are small. This pattern is very common in B2C sales.
  
  
• The R1/R2 sales cycle, or two-stage selling: this cycle, which mainly concerns tradespeople, consultants and service providers, comprises :
  • a phase of discovering the prospect's needs,
  • then a stage in which you present your sales proposal, deal with objections and, in the best-case scenario, close.
    
    
• The long, or complex, sales cycle: a long process reveals a greater need for reflection, as is often the case in B2B.

B2B sales cycle VS B2C sales cycle

Sales cycle management is a process that applies to both B2B and B2C, since in both cases it is essential to follow a well-honed strategy.

However, there are a few differences:

• 💡 The BtoB sales cycle is generally longer, especially if your company deals with large accounts. Indeed, in this context, the questioning is in-depth, the decision-makers compare several suppliers (as part of a call for tenders, for example) and the approval of several individuals is often required.
  
  
• 💡 In BtoC, we're dealing more with a short sales cycle, or "one shot": just one person is involved in the purchasing decision. What's more, the thought process is quicker, particularly when the potential buyer is in direct contact with the offer, at a point of sale for example.

The 7 stages of the sales cycle

The sales cycle differs from one company to another, since it depends on a number of factors (target clientele, nature of the product or service being sold, etc.).

Here, however, is the classic diagram:

Stage 1: sales prospecting and initial contact

This first stage in the sales process consists of looking for prospects. This involves identifying people, companies or organisations likely to be interested in your sales offer, using a variety of channels:

• marketing, particularly inbound marketing
• professional social networks
• face-to-face meetings at trade events,
• door-to-door canvassing, etc.

Once the leads have been identified, it's time to make initial contact:

• by phone,
• by email
• on professional social networks, etc.

Stage 2: qualifying prospects

From the outset, the sales department gathers the information needed to understand the profile of the prospect or company.

In this way, they can make sure that they are the right person for the job. There's no point, for example, in spending time negotiating with an organisation that doesn't have the budget to buy your solution!

Stage 3: identifying needs

An effective sales approach should focus on the needs of the potential customer, not on the product or service on offer.

To identify these needs, the sales force talks to the prospect, using open-ended questions to pinpoint the issues to be resolved:

• Are you experiencing problems with your current service provider?
• What are your short-term and long-term objectives?
• What would you like to change now to achieve these goals? Etc.

Stage 4: presentation of the offer

The fourth stage involves presenting the prospect with a sales pitch based on the needs identified earlier: "We understand that you are experiencing such and such a problem. We've understood that you have such and such a problem, so our offer can respond in such and such a way".

Thanks to this customer-centric approach, you can personalise the presentation of your products or services to make your pitch more impactful and attract more interest from your customer.

Step 5: Dealing with objections

Chances are that your prospect will raise objections (price of your solution, lack of interest in the added value it provides, resistance to change, etc.).

It's up to you to respond to them, using a positive approach based on listening to their needs and sources of motivation. For example, if the person you're talking to is worried about the high price of your product, remind them of the excellent ROI they'll get from using it.

💡 You're also likely to come across recurring objections. It's worth picking them up and sharing them with the rest of your sales team, so that together you can build a sales pitch to counter them.

Step 6: Concluding the sale

This final stage marks the conclusion of the sale, or closing, with the signing of a contract, the payment of an invoice, and so on.

At this stage, any objections expressed by the customer should be dealt with, and the next steps in the process clarified.

Stage 7: Customer follow-up and loyalty

It can cost up to five times less to retain a customer than to win a new one.

INIT

Keeping track of your new customer and implementing loyalty-building measures (marketing initiatives in particular) is an excellent way of boosting your company's profitability.

Not only will you keep them in your customer portfolio... but there's also a good chance they'll recommend you to their network!

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5 tips for mastering your sales cycle

Tip 1: Identify your own sales cycle

Every organisation has its own specific characteristics. As a result, the structure and duration of the sales cycle vary from one company to another.

It's up to you to identify your own processes to improve performance and integrate new recruits more easily.

💡 Rely on :

• On feedback from your teams. How are they structured? What resources (channels, tools, pitches, etc.) are used? ;
• but also their results in terms of lead generation, number of closings, length of the sales cycle, etc.

Tip 2: Define clear objectives

If the aim of a sales cycle is ultimately to improve sales performance, it is easier to optimise your actions by aiming for clear, predefined objectives (reducing lead processing time, shortening the overall sales cycle, etc.).

Tip 3: Structure your sales teams

Today's sales departments are becoming increasingly complex, and each one is becoming more specialised. It is not uncommon to find within a single department :

• pre-sales engineers in charge of pre-sales, in particular strategic and competitive intelligence,
• a team dedicated to cold calling,
• another in charge of the stages from qualification to closing,
• and account managers (Customer Success Managers) who manage post-sales customer relations and customer loyalty.

And the good news is that this division of roles results in a closed sales rate that is 7% higher than that of other companies (source: uptoo).

Tip 4: Focus on your prospects

Knowing the profile of your prospects, their needs and their position in the buying process means being able to identify the most appropriate way of approaching them.

At the same time, avoid focusing your sales pitches and presentations on your company. The customer must remain at the heart of your concerns, and your role is to support them to help them solve their problems and meet their challenges.

💡 Why not use buyer personas to identify the profile and typical interests of your potential customers?

Tip 5: Use the right software

Using the right sales management software, such as a CRM (customer relationship management) tool, saves your sales teams time on administrative work. So they can concentrate on the customer relationship itself, which generates more value.

In addition, CRM software automates the management and facilitates the analysis of prospect and customer databases in order to :

• identify the hottest leads, using scoring functions for example,
• identify the commercial steps you need to take to retain your customers,
• visualise the concrete impact of your actions on buying behaviour.

Examples of CRM software:

• 🛠️ Axonaut: easy to use and ergonomic, Axonaut is a mix between CRM and ERP. It automatically generates the customer lifecycle. Thanks to a Kanban view that can be fully customised for all sectors of activity (name of stages, number of stages, etc.), you have a clearer overview of your sales process, from prospecting to invoicing.
  
  
• 🛠️ GRC Contact: a CRM that also offers quotation and invoicing functionalities. The solution is configured to link the stages of the sales cycle in a given order (opportunity - quotation - invoice). It can also automate certain tasks, such as presenting sales proposals.
  
  
• 🛠️ Sellsy CRM: Sellsy CRM is ideal for very small businesses that want to organise their sales around a pipeline view and automate their actions as far as possible. The software can also be used to qualify prospects using tracking and scoring functions.

Tip 6: Continuously improve your sales cycle

The sales cycle is bound to change as your company and your market evolve.

Remain agile and adapt constantly by :

• Evaluating your strengths and successes,
• identifying your weaknesses and bottlenecks to define areas for improvement,
• seizing new opportunities.