What is a sale cycle?

You have an awesome new idea that will make thousands of people's lives better and easier -- but how do you get it out there so everyone can experience its benefits? Well, if your goal is to become one of those "thousand-person" companies (or even just hundreds), then you'll need more than good ideas. You need marketing savvy too.

Marketing experts call it "sales," which means getting prospects interested enough to want to buy from you instead of someone else. It takes time, persistence and creativity to create demand for something new within any established market. And while some large organizations are able to generate their own leads, most rely on outside help. That's where advertising agencies come into play. They know all about making sure products look appealing, convincing consumers they're worth buying and keeping them excited until the final purchase.

But not many marketers understand exactly what goes down between initial interest and eventual payment. The process of generating revenue may be broken up into several phases, including lead generation, qualification, positioning, promotion and conversion. Each phase comes with specific goals and objectives, along with strategies for achieving success. To put together a cohesive blueprint for growth, we've combined the best practices from various industries to provide general guidelines for launching and managing successful campaigns. Let's start by taking a closer look at the first step in the process -- attracting potential customers' attention.

The following pages describe different ways that businesses typically find their target audience. Then we examine common techniques used to contact these prospective buyers. Finally, we discuss the importance of follow-up tactics to keep their interest long after the initial pitch.

So who buys stuff like yours anyway? Is it really possible to reach anyone without being annoying? What does "going viral" mean, anyways? Find answers to these questions and more on the next page.

What is the process of sales Cloud in Salesforce?

What is sales Cloud vs Salesforce?

Is sales Cloud available with Salesforce?

What is sales Cloud?

Sales Cloud describes a set of tools specifically designed to simplify the entire sales funnel. From lead generation through customer acquisition, engagement and retention, Sales Cloud allows users to manage everything involved in driving business results. Its features include customizable landing pages, comprehensive reporting capabilities, a personalized portal system and automated eMail scheduling. In short, it can boost productivity, speed up decision-making processes and increase efficiency throughout nearly every aspect of selling. But before diving into details, let's take a quick overview of key points in the overall sales cycle, beginning with lead generation.

Lead Generation

Lead Generation is the act of finding qualified individuals who seek solutions similar to yours. Prospects must fit certain criteria, such as age group, gender, location and profession, to qualify for consideration. There are two main sources of leads: cold calls and online ads. Cold calling involves reaching out directly to targeted audiences via telephone or mail, whereas digital media refers to methods like search engine optimization, social networking sites and email marketing. Online ads range from banner advertisements placed strategically around the Internet to full-page display ads inserted into popular magazines. Once prospects express interest, sales reps use telemarketing services, surveys or Web forms to gather additional information about their needs. This data helps determine whether targets would benefit from using your particular solution, and also gives representatives insight into the effectiveness of current campaigns.

Contacting Prospects

Once sales professionals receive leads, they often send prewritten emails to introduce themselves and offer assistance. Afterward, reps continue communicating regularly over a period of weeks or months to build trust and gain further understanding. For example, during the qualification phase, reps might schedule phone interviews or arrange meetings to present demos or other samples. Some companies prefer to meet face-to-face rather than conduct virtual demonstrations due to concerns regarding confidentiality issues related to sensitive materials. If necessary, reps can request permission to share documents and images electronically. When appropriate, sales teams ask prospects to sign nondisclosure agreements when conducting business activities under strict privacy laws.

Qualifying Prospects

After gaining interest from a few select contacts, salespeople begin trying to narrow down the number of actual customers that could potentially buy their goods or services. During this phase, they evaluate candidates based on specific requirements, such as budget, size of company and desired industry. Reps may perform background checks, verify employment status, review credit reports and assess job skills. While determining eligibility for participation, representatives confirm that clients agree to terms outlined in contracts, add relevant clauses and negotiate prices accordingly. Qualification procedures vary according to regulations and contractual obligations, but generally involve multiple rounds of communication with the client.

Positioning Products & Services

To position your offering effectively, sales managers should consider factors beyond price. These elements include competitive advantages, branding and image, corporate policies and philosophies, quality control and delivery schedules. Companies usually choose to advertise only those items that appeal strongly to their target markets. For instance, if you operate a retail store, you wouldn't bother displaying clothing that doesn't draw much attention. Likewise, if you run a manufacturing facility, you'd probably skip building prototypes for untried technologies. By focusing efforts on attractive products, sellers give prospective buyers confidence in their abilities and encourage repeat orders.

Promoting Products & Services

When promoting products and services, sales reps aim to maintain existing relationships as well as attract new ones. Traditional promotional approaches include direct mailings, trade shows, seminars, radio spots, TV commercials and word-of-mouth recommendations. However, today's technology has made traditional promotional methods obsolete because they waste money and resources. Instead, sales leaders should focus on online promotions like SEO, social networks and video content distribution. Reputation management software can track positive feedback and negative press coverage, enabling companies to respond quickly and efficiently. With proper planning, sales executives can leverage public relations to maximize visibility and improve brand recognition.

Converting Interested Contacts Into Clients

Although lead generation is essential for creating demand, converting interested parties into paying customers requires patience and perseverance. Most sales cycles last anywhere from six months to a year, but once a buyer finally signs off, he or she becomes a loyal advocate who spreads the word about your offerings. Therefore, sales reps devote considerable effort toward acquiring new clients. As part of ongoing relationship maintenance, reps try to anticipate changes in consumer preferences and adjust pricing accordingly. Additionally, they work closely with internal departments to ensure smooth order processing and production. They also monitor competitors' developments and stay updated with emerging trends. Lastly, sales execs strive to strengthen ties with satisfied customers by developing mutually beneficial partnerships.

As you learned earlier, the sales process begins with lead generation. Next, read about how to engage potential buyers.

While researching and writing this piece, our team noticed that the word "conversion" appears numerous times in connection to the above topics. We believe that conversion represents the critical point where a deal turns into a transaction. At this juncture, the sales rep seeks to convert interested prospects into real customers. Conversion rates refer to the percentage of contacted individuals who ultimately decide to pursue a partnership agreement with the seller. Ideally, conversions result in completed transactions per unit sold.

How Do I Get Started Using Sales Cloud?

There are three primary components needed to successfully launch a campaign: a strategy, marketing collateral and implementation plan. First, strategists sketch out a clear vision for the campaign. Whether working alone or consulting with colleagues, they outline goals, obstacles, challenges and opportunities. Once they establish realistic benchmarks, they identify effective channels for distributing messages. Next, writers develop creative pieces to convey concepts and differentiate brands. Examples can include brochures, banners, posters, flyers, newsletters, billboards, television and radio commercials, printed material, Web site copy, print ad inserts, postcards, presentations, letters, memos, white papers, podcasts, videos, audio clips and photos.

After completing the preliminary stages, sales personnel assign tasks to implement marketing plans. Usually, implementation groups consist of representatives from finance, human resources, operational support and legal departments. Executives responsible for execution duties oversee employees in charge of executing tasks such as design, distribution, printing, mailing and Web development. Implementation teams communicate frequently to resolve conflicts, coordinate deadlines, check progress and report problems.

Now that you have a clearer picture of how marketing works, let's explore why some businesses succeed while others fail.

Just a decade ago, brick-and-mortar stores dominated the marketplace. Nowadays, however, shoppers increasingly turn to the Internet to research and compare vendors. According to recent studies conducted by Nielsen and ComScore Media Metrix, more than half of Americans shop exclusively online now, spending $9 billion annually [source]. So how did companies like Amazon.com, eBay, Google Shopping and Wal-Mart change the way people do business? Simply stated, they found innovative ways to cut costs and compete against big box retailers. On the next page, discover why this shift occurred and how it affects future competition.

Why Are Marketers Turning Their Backs on Advertising Agencies?

Whether your business sells products, services or information, virtually all organizations use the same basic steps when selling their wares. This makes sense because most people want exactly the same things from any given seller -- quality goods at reasonable prices with good customer service. And these days, more than ever before, buyers have lots of choices among competing sellers. So how do you make sure that they choose yours? Simple: follow proven marketing techniques that will help them decide whether your company can best meet their needs. One such technique is called "The Sales Cycle," which provides an objective framework by outlining the specific tasks involved in making a buying decision. By following the seven-step sales procedure described below, you'll be able to get through a typical sales call without looking like a used car salesman!

First, let's look at what a sales cycle actually is. It simply refers to the series of events that take place between initial contact until payment has been made. In other words, it's the path that leads up to a completed deal. The actual length of a particular sales cycle depends on several factors, including type of product being offered, buyer expectations, competition, price, etc. But no matter what product or service you're selling, there are common elements within each phase of the sales cycle. For instance, during the first step (prospecting), prospects typically receive some sort of offer via mail, email or fax. Then, while the second step (contacting) involves multiple contacts over time, the third step (qualifying) usually consists of screening calls and sending out questionnaires. During the fourth step (demoing), potential customers visit the company's showroom or office and try out its offerings. Finally, if something goes wrong (such as a major objection), the fifth step (overcoming) may involve reworking the original proposal so that everything runs smoothly down to the final step (closing). Afterward, the client receives his new merchandise or money transfer.

In order to effectively complete each one of those stages, it helps to know what happens in each step. Keep reading to find out what does.

What is a sales cycle and why is it important?

What is the sale cycle?

What are the steps in the sales cycle?

What are the 7 sales steps?

What is a sales cycle and why is it important?

Why should anyone care about defining a sales cycle? Because knowing where you stand in terms of the number of steps remaining gives you valuable insight into how well your current efforts are working. If you've tried different tactics but haven't seen results yet, then maybe it's time to change strategies. A sales cycle analysis also allows you to see patterns in your performance, identify strengths and weaknesses, and formulate future plans. You might even discover that certain clients require special attention during certain phases of the sales cycle. Armed with this knowledge, you can better target prospective clients who need exactly what you provide.

Next we'll look at the specifics of what constitutes each of the key components of the sales cycle.

According to Forbes Magazine, only 35 percent of U.S. companies measure ROI [return on investment] against their advertising budgets. That means 65 percent either don't track return on investments or base their decisions solely upon anecdotal evidence.

What is the sale cycle?

To understand what comprises a normal sales cycle, consider the simple example of trying to sell someone dinner. When was the last time you went out to eat somewhere fancy for just two persons? Chances are, you probably experienced a pretty long sales cycle, since most restaurants prefer large parties of eight or 10 people minimum. Now think back to another experience, say ordering food online. How much did it take to pay for delivery charges, tip, taxes, labor costs and waiting time? Again, chances are, you were sold a bill of goods that didn't quite match reality. As far as restaurant dinners go, many of us would agree that online purchases tend to cost less per person than eating at home. However, when comparing total expenses, both scenarios end up costing roughly the same thing: our hard-earned dollars. That's because after paying for shipping fees and delivery charges, tipping servers and dealing with wait times, most of us spend the bulk of our mealtime talking amongst ourselves instead of focusing on enjoying it.

When presenting your idea to a potential client, however, you must always keep in mind that he wants nothing more than to be entertained throughout the entire sales cycle. He doesn't expect to be wooed by your wonderful personality or charm offensive once he shows interest in hearing about your product or service. Instead, he expects to be treated fairly and honestly right from the start. So remember: honesty is still the best policy. At least tell him upfront that you intend to ask for a sizable deposit in exchange for a quote, rather than having him feel cheated later.

So now that you know what a standard sales cycle looks like, read on to find out what all those individual parts mean.

During the past few years, the Internet has become increasingly popular as a way to buy and sell items. According to a recent report released by comScore Media Metrix, nearly 70 percent of U.S.-based adults visited the Web site eBay.com in 2006. Of those visitors, 46 million searched for electronics, followed by clothing at 38 million.­

What are the steps in the sales cycle?

Now that you know what constitutes a normal sales cycle, here are descriptions of each component:

Prospecting - This includes identifying possible targets with whom you'd like to interact. Prospects could include existing clients, competitors, referral sources and acquaintances. Once identified, you should determine the best method for reaching them. Mailings, e-mail blasts, phone calls and direct mailing campaigns are examples of effective ways for getting the word out.

Contacting - Whether you speak directly to your prospect or through a broker, the point is to stay in constant communication. Constant contact builds trust, fosters loyalty and increases the odds of making a sale. Regularly scheduled meetings are recommended to check progress toward goals.

Qualifying - This is the primary step in the sales cycle. Here, you conduct research to verify the value of your offering based on market trends, competitive advantages and financial projections. Also, during qualification, you screen potential candidates to narrow down your focus and eliminate dead ends.

Demo/Presentation - Before agreeing to anything, a prospect wants to test drive the product or service and ensure that it meets his requirements. Therefore, demonstration visits are often necessary. Demo sessions allow the prospect to sample your product and compare it to similar ones available elsewhere. They give the customer enough opportunity to evaluate your offering objectively.

Overcoming Objections - No matter how smooth your presentation, sometimes problems arise. Overcoming objections is the part of the sales cycle when glitches occur that force negotiators to renegotiate contracts or abandon projects altogether. The goal is to resolve issues quickly and efficiently so you can move forward.

Closing - Usually, the main purpose of the sales meeting is to seal the deal. Negotiators work together to reach a compromise acceptable to both sides. Successful closings result in successful transactions.

As you can see, completing a sales cycle requires careful planning and meticulous execution. Next, we'll break down each step and examine them in greater detail.

Although the average sales cycle is generally considered to run five months to six months, estimates vary depending on industry standards. For instance, according to Robert Half International Inc., the average commission earned by entry-level account managers is $41,000 annually. More senior executives earn an annual average of $72,000, while partners pull in $120,000. ­

What are the 7 sales steps?

While the preceding sections covered various points along the sales cycle, the next section focuses specifically on the seventh step: closing.

After spending countless hours preparing for presentations, negotiating agreements and managing relationships, the natural conclusion is that salespeople are exhausted and ready to throw in the towel. Unfortunately, too often, that's not the case. Many sales folks fall victim to burnout due to long hours spent away from family members, poor health habits and lack of sleep. There are a number of methods and tools that can help combat exhaustion and fatigue, such as delegating responsibilities to others, maintaining healthy lifestyles and scheduling breaks.

Despite extra effort, though, many sales reps simply aren't rewarded for their tireless work ethic. That's because, in addition to producing tangible results, selling requires building strong personal connections with clients. These bonds rely heavily on rapport skills that can only come naturally with repetitive interactions over time. Since it takes longer for relationships to develop, sales professionals generally reap higher rewards the further they advance up the corporate ladder.

For the purposes of brevity, this article focuses mainly on the mechanics of the sale itself. To gain a deeper understanding of how to successfully negotiate a contract, refer to What Every Business Person Should Know About Contract Law.

If you're tired of cold calling, join the millions of Americans who signed up under the Direct Selling Association umbrella. Through membership, you can tap into DSA's extensive network of independent representatives. Members are eligible to participate in nationwide promotional programs and local chapter activities. The biggest benefit: access to exclusive member discounts, free training seminars, leadership development opportunities and marketing support.

Salespeople work hard at their jobs and deserve our gratitude and appreciation. However, it's easy to take them lightly -- especially when they're making cold calls, sending emails, knocking on doors, and chasing after prospects who say "no" more often than not. As much as we appreciate these efforts, there can be times where we don't fully realize how difficult selling is until someone actually says yes.

It takes a lot of time, energy, perseverance, persistence, commitment, and dedication to make your business successful. And even then, success isn't guaranteed because sometimes, despite all your best efforts, things just don't go according to plan. The truth is that no one knows if a deal will pan out better than the person responsible for driving those efforts forward. That's why it's so important to give praise and recognition where it's due. In addition to your employees' hard work, there should also be an occasion to recognize what goes into building relationships with new clients and partners. It doesn't happen very often that people get such opportunities, but here's one such event!

The good news is that thanks to technology, companies today have access to powerful tools like SalesCloud, which allow them to automate many parts of the sales cycle. This helps reduce labor costs without sacrificing quality control. So let's explore what exactly happens during the entire sales cycle from start to finish using real-life examples, and see how automation can play a key role.

What are the sales cycle?

Let's begin by looking at some common stages within the traditional sales cycle. These include (1) lead generation, (2) qualification of leads, (3) presentation and demonstration, (4) negotiation and agreement, and finally (5) post-sales services follow up. Let's look at each of them in turn.

Lead Generation

This refers to activities performed by marketing teams to generate leads, including advertising campaigns, social media marketing, public relations, direct mailings, e-mail blasts, etc., among others. When done properly, these activities help attract potential buyers to view your products or services. A salesperson may also use various methods to contact prospective customers directly, including phone calls, email correspondence, text messages, meetings, and other forms of communication. Marketing departments rely heavily on CRM software systems to store information about past interactions with existing and potential customers. Many organizations employ both internal and external resources to increase efficiency and productivity.

Qualification

A potential customer must meet certain requirements before he or she qualifies as a viable candidate for your company's offerings. For example, a buyer must fit in an appropriate demographic category, has enough money available to buy your goods or services, wants something specific, and/or needs his or her job position improved. During this step, qualified individuals are further assessed based on their knowledge level and expertise. If necessary, additional training may be required to ensure that they know everything about your products and services.

Presentation & Demonstration

During this phase, the client sees, touches, tastes, smells, hears, and experiences your offering first hand. Presentations and demonstrations are meant to convey the advantages of owning your brand over competing brands in terms of price, features, performance, reliability, durability, safety, comfort, convenience, quality, speed, response time, and overall satisfaction. They provide valuable feedback for a buyer regarding his or her decision.

Negotiation & Agreement

After being thoroughly educated about your products and services, a client typically makes a final decision whether he or she wishes to purchase them. Negotiating prices, delivery schedules, warranties, guarantees, and any other conditions of a transaction requires skillful persuasion. Since negotiations tend to involve several parties, issues arise related to timing, budget constraints, scope creep, and unforeseen circumstances. To find solutions to problems and challenges associated with negotiating agreements, legal experts, financial analysts, economists, and other professionals may need to be brought in. After reaching a mutual understanding with the client, a contract detailing obligations between two parties becomes official.

Post-Sale Services Follow Up

Once a deal closes successfully, it's essential to stay connected with your client. By providing useful services like installation, setup, maintenance, support, warranty coverage, technical assistance, and repair, you demonstrate your value as a trustworthy partner. Although contracts usually outline expectations concerning payment procedures, shipping fees, return policies, insurance, taxes, security deposits, and other contingencies, problems do occur. Your clients might experience delays, errors, damages, theft, defective merchandise, and similar scenarios. You want to respond quickly to avoid losing credibility with your customer. Therefore, it's critical to keep tabs on ongoing transactions and communicate effectively with your client throughout via telephone, faxes, letters, face visits, and emails. If possible, consider partnering with third party providers to enhance your ability to serve your client base.

Now that we've gone through the five phases of the sales cycle, let's discuss how modern technologies can streamline operations. We'll cover what Salescloud does specifically to improve efficiency and effectiveness along with its core functions.

What is Sales Cloud in Salesforce?

As mentioned earlier, SalesCloud automates many parts of the sales cycle by integrating data across different departments. Here are some of the ways it improves workflow processes.

Prospecting

Most businesses require extensive amounts of paperwork when dealing with customers. Prospect management involves creating documents such as proposals, quotes, orders, invoices, estimates, reports, and other items needed to facilitate the sales process. Using SalesCloud, users can create custom templates for repetitive tasks. For instance, they could set up templates for standard quotations, proposal submissions, and requests for bids. Templates can save hours of manual effort while keeping track of numerous projects simultaneously. Additionally, the system keeps records of conversations, dates, contacts, expenses, and payments right inside Salesforce. Users can easily navigate through multiple screens, saving countless minutes spent typing notes manually. Moreover, SalesCloud allows integration with popular accounting programs like QuickBooks, Xero, Freshbooks, and MYOB. With SalesCloud, users can sync data automatically.

Contact Management

When working on accounts, sales representatives need to send updates to managers, account executives, and other stakeholders. But doing so manually is inefficient since most sales reps spend large chunks of their day communicating with different colleagues instead of focusing solely on customers. Also, updating leads, tracking responses, managing appointments, and setting reminders takes too long. SalesCloud offers robust functionality for effective contact management. Users can manage unlimited numbers of contacts, create multi-level hierarchies, sort leads by status, assign colors, add tags, attach files, share calendars, etc. Plus, it provides analytics to visualize activity trends, identify bottlenecks, and spot problem areas.

Account Dashboards

By utilizing smart dashboards, sales staff members can monitor daily progress against goals by accessing relevant metrics. Account dashboard pages display KPIs, forecasts, conversion rates, pipeline growth, revenue, profit margins, number of active leads, etc. Not only does this feature enable quick visibility into vital statistics, it lets managers coordinate with team leaders, field agents, and other stakeholders seamlessly.

Knowledge Base

Many industries depend on accurate documentation to streamline operations. Whether you run an auto shop, restaurant, hotel, car dealership, retail outlet, manufacturing plant, medical center, airport lounge, etc., having reliable references and manuals ensures consistency in delivering high-quality products and services. Most businesses have limited resources and personnel dedicated to maintaining updated reference materials. Hence, they hire specialists to compile lists of questions, answers, specifications, guidelines, rules, regulations, standards, checklists, etc. Manually collecting and distributing these types of materials is time consuming and costly. SalesCloud enables users to build detailed knowledge bases featuring content submitted by peers, customers, and vendors alike. Knowledge bases contain links to supporting documents and FAQs. Each entry includes customizable fields for adding comments, descriptions, photos, attachments, URLs, and similar details. This saves time and increases accuracy compared to compiling documents individually. Furthermore, SalesCloud supports version history to revert changes made later. Lastly, it integrates with cloud storage platforms such as Dropbox, Google Drive, Box, OneDrive, SharePoint, Evernote, etc. to securely distribute files internally and externally.

In summary, Sales Cloud makes it easier for everyone involved in the sales process to collaborate efficiently. From top management to frontline workers, it reduces miscommunication, eliminates wasted time, and speeds up turnaround cycles. With Sales Cloud, you gain unprecedented insights to understand your market and boost revenues. On the next page, we'll talk about how SalesCloud works.

Why sales Cloud is used?

There are three main reasons behind choosing SalesCloud. First, it provides complete transparency for all participants in the sales cycle. Second, it empowers sales teams to connect with customers 24/7. Third, it gives sales reps more freedom to focus on income producing activities rather than administrative duties.