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=ZmGVFIw0Ss&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-ofsales-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