24 April 2014
If you think all you need to clinch deals is a list and a phone, think again. Of course, you can make a lot happen with these resources, but then you would also be missing out on a lot more.
You could take your business to greater heights with a little planning and an excellent marketing tool called the sales pipeline.
Sales pipeline is a visual representation of your sales process. It is an arrangement of all your customers according to the phases of sales cycle they belong to. You can visualize it as a sales funnel which is used to filter down your “leads” to “customers”.
Your leads “trickle” down the sales funnel at every sales stage and results in the final outcome, that is a closed deal. So, logically, the very first step towards creating a well defined sales pipeline is to clearly list down the stages of your sales process.
In case you aren’t sure of the number of sales pipeline stages, simply write down the steps that are required to convert a prospect to your customer. It’s as simple as that. It is often advisable to keep the sales process short.
Too many stages often mean too much of data to be handled and a long winded buying cycle for a customer. Try making your sales process as lean as possible. In general, the stages of a sales process can look like this:
Prospecting – This is the stage where you seek out prospective customers by either cold calling or by using offline and online marketing strategies.
Qualifying – After having found your prospects, you now assess them on criteria such as their purchasing capacity and need to determine whether they are worth your sales efforts. The focus at this stage is to streamline your efforts to only those who are worthwhile. This is where customer profiles will come in handy.
Proposal – Next, here you approach your prospective customers with your offering. You make a presentation of your product and how it solves a real problem.
Decision – In this stage the prospects are left to make a buying decision based on product/service features provided to him.
Close and Repeat Sales – Once the customer gives his consent to the agreement, the deal is closed. The sales representatives then move ahead with paperwork, ask for referrals and maintain relationship to ensure future sales.
After listing down the stages of the sales process, the next step is arranging your pool of customers as per the various stages. It might take a while when you start, but eventually you’ll get the desired result - a sales pipeline.
The benefits of a sales pipeline are manifold. It not only lets you view the number of customers at each stage of the sales process, but also helps you identify the stages that clog the entire sales cycle.
For instance, if a number of leads are terminated in the proposal stage, it hints at the possibility that the business proposals written by your sales team are not as effective as they should be.
Given the critical role a sales pipeline plays in the business, I have attempted to list down some methods which can lead to a better sales pipeline management. Here they go:
Organizing and managing all the vital information about your leads from one easily accessible place will earn you rich dividends in the form of effective follow-ups and more successful deals in your kitty. A lead tracking software is a good place to start.
To make this stage more effective, try storing all the email conversation with a prospect under a deal using an email dropbox feature. This way you can quickly refer to the past conversation with a prospect as and when you require.
Use the sales reporting that your sales tracking software churns out to get insights into what is working for you and what is not. Analyze the sales funnel report to discover in which stage you are losing out on most of the deals. These insights can then be put to use in forming better strategies and marketing plans.
Stage velocity refers to the average time it takes for a prospect to move from one stage to the next. You need to monitor the stage velocity regularly as flow within your pipeline usually means you are selling well. Look out for stages where your sales process is being held up.
Sometimes they indicate inefficiencies in your process which need correction. Perhaps your qualification process is faulty and you are spending too much time chasing the wrong prospects and losing out good ones.
Not all prospects that enter into the sales funnel leave as customers. However, too many prospects slipping out of your pipeline can be a sign of a problem. Try to fix it by revising your sales operations and bringing in new sales tactics.
Allocate additional resources so that you can act faster. You could also identify prospects who have “leaked out” and find opportunities to “recycle” them.
If you find your sales process to be otherwise flawless, you could try boosting sales by pushing more prospects into the pipeline. Increasing the raw number of leads often work for some businesses. Employ additional sales staff to generate more leads or you may even create a lead magnet.
Think quality over quantity and aim for customers with bigger potential and of course - a bigger budget! Try to find out what they need and formulate a strategy to approach them. You could try add-ons or even bundle multiple products to create an offering suited to their needs.
Many a times, businesses misdirect their sales effort by pursuing the wrong person or someone who is not the final decision maker. It is important to identify the person who controls the purse strings and has the final say in a purchase decision.
However, asking your lead who the decision maker is can be an awkward task. You could try to obtain the information by suggesting that the purchase would entail a significant expenditure and would possibly require an executive approval. LinkedIn is a great place start to figure out who to talk in an organization.
If you aren’t already using a small business CRM to manage your sales operations, sign up for one immediately. Track all the sales pipeline stages that your prospects go through and and measure both your successes and failures.
This will give you a roadmap to success. Repeat the path which earned a deal in the future and stay clear of the mistakes that cost you a customer. You could list down the “do’s” and “don'ts” that will guide your sales force.
Once you get your pipeline flowing smoothly, beware of getting complacent. You will be surprised as to how often the stages of the sales process or the needs of your customers change.
You need to be flexible and quickly react to changes. Be prepared to combat changes with appropriate course corrections in your sales strategies.
Sales pipeline is a powerful tool which, when utilized optimally can boost your bottomline. In case you do not have one, get one soon. For those of you who do, try implementing these tactics and see the changes!
