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Découvrir CockpitIf you have leads but few client conversions, something is off in your prospect’s buying journey 🤔
This issue is solved by an optimized sales cycle, but before that: it must be defined!
By definition, the sales cycle is the process implemented by a company to convert an average internet user into a loyal customer.
In other words, it encompasses all the steps followed by sales professionals to secure a contract signature.
💡 Note: sales methodology and sales technique are two distinct elements. To learn more about sales techniques, click here: Review Your Basics: Must-Know Sales Techniques.
Today, unlike before, the sales cycle is divided between the marketing and sales teams to increase the chances of closing. We explain everything in this article!
Why Define Your Sales Cycle?
For any company, mapping out its sales cycle is essential for your sales teams, but not only that.
The 3 benefits of a clear sales cycle:
- Sales team productivity
- Visibility into performance
- Strategy optimization
When each step is defined, salespeople know precisely their role and that of others. This visualization structures sales actions and allows you to monitor sales performance. For example, if a bottleneck is identified at a specific stage, the company can quickly react to better organize the team or train certain salespeople.
Even more broadly, a sales cycle established step by step provides a better understanding of sales timing and the deadlines to consider. An element that attests to a company’s credibility in the eyes of its customers!
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At a strategic level, the detection of flaws is a real asset for optimizing the sales cycle, improving it, and increasing productivity.
The sales cycle is not a fixed mechanism; it is a flow to be continuously refined and, most importantly, customized according to your company, not only based on the results obtained but also on feedback from your teams.
The New Model of B2B Selling
Sales cycles vary greatly from one company to another. They differ based on the industry, market positioning, the type of product or service offered, and a multitude of other factors.
In a B2C context, sales can be made in a “one shot.”
For freelancers, it is carried out in two phases: first, the prospect becomes aware of their needs, and then the commercial proposal, negotiation, and closing are done in one go.
However, in B2B, it’s a different story: the sales cycle spans several weeks, even months. For example, at Alto, sales take between 3 and 6 months.
It is with B2B sales cycles that breaking down the sales force becomes very interesting. Companies that divide roles have a closing rate 7% higher than other companies!
It makes sense: the prospect is gently guided toward purchase because their level of qualification is known and respected by the sales teams. They are first identified by the marketing department, and then the salespeople take over when the prospect is mature enough in their buying decision.
This breakdown, where marketing and sales work together, is the emerging new B2B model. We explain the 8 steps in detail.
The 8 Stages of the B2B Sales Cycle
A prospect only agrees to speak with a salesperson after having completed between 65% and 90% of their buying decision process. The role of upstream marketing is crucial to ensure that the efforts of the sales team are effective.
It is with this approach of supporting the prospect that the sales cycle has been refined over the years.
- [Marketing] Lead Generation
Inbound marketing attracts visitors and ensures capture of their contact information. For example, when registering for a webinar or downloading a lead magnet such as a high-value guide.
At that moment, the visitor becomes a prospect (i.e., a lead).
- [Marketing] Prospect Qualification
To eliminate mere window shoppers and focus only on those likely to become customers, it’s necessary to understand the reasons behind the prospect’s interest. For that, the marketing team tracks the journey on the site (i.e., web tracking).
Some companies even have a lead scoring strategy, meaning that each visitor to the page is assigned a maturity score based on the time spent and the actions taken on the site.
The prospect becomes increasingly qualified, and therefore more likely to be contacted by the sales team.
- [Marketing] Lead Nurturing
To help qualify the prospect, the marketing department nurtures their interest so that it continues to grow. Through relevant and personalized content, the prospect is guided through their buying process.
The content is intended to show that the prospect’s challenges and issues are understood. The more on target the content, the more the company is recognized as an expert in its field and remains top-of-mind.
The trust relationship gradually takes hold, and the lead becomes increasingly inclined to turn to the company when it’s time to make a purchase.
- [Sales] Prospect Qualification
Once marketing has done its job qualifying the lead, it’s now the sales team’s turn to step in. The initial contact confirms the qualification of the prospect: it moves from MQL (Marketing Qualified Lead) to SQL (Sales Qualified Lead).
This discovery call generally follows the BANT method:
- Budget: Is the offer suited to the prospect’s budget?
- Authority: Is the prospect the final decision-maker?
- Need: Does the prospect need the proposed solution?
- Time: How quickly does the prospect need the solution?
Once this stage is validated, the prospect is officially qualified.
- [Sales] Product or Service Presentation
Whether in the form of a pitch or a demo, the sales team presents the solution to meet the prospect’s needs. Thanks to the valuable data gathered by marketing, the salespeople tailor their argument to be more relevant based on the type of lead.
This is the strength of the union between the marketing team and the sales team: the message is aligned and personalized for each prospect.
- [Sales] Proposal and Handling of Objections
When the presentation stage is successful, a commercial proposal is sent and discussed in a subsequent meeting. It is at this point that all the details of the service are explained, including pricing, payment terms, and signatures of the parties…
Any final objections are addressed with reassuring information.
- [Sales] Closing
Even if the salesperson is tempted to close quickly after acceptance, it is essential to handle the closing process with care. This signing moment provides an opportunity for the client to ask any questions and for the salesperson to explain the next steps in follow-up.
If, in the end, the prospect declines, it becomes an opportunity to understand why and to continuously improve the sales cycle.
- [Customer Relationship] Retention
After the sale is concluded, Customer Success Managers take over to welcome the new client, conduct onboarding, and maintain the relationship with the help of marketing.
This stage is crucial because your customers are your best ambassadors; if they are satisfied and well taken care of, they will refer you.
