May
28
What Is The One Thing Business People Want, That Is Often Overlooked?
Filed Under Year Of Original Content, fundamentals, informed decision, learning, resources, sales, strategy | Leave a Comment
(No Ratings Yet)
Loading ...Predictability!
What I’m talking about here is forecasts that are accurate.
Accurate enough to base key decisions on, such as whether to order more materials now, in order to be able to meet potential future orders within your stated delivery or lead times.
Accurate enough to be able to decide if you are going to avoid some short-term cash flow issues, or if you need some short term injection of cash – really critical in the smaller business.
Accurate enough to be able to decide when to let employees – or yourself – have time off for vacation.
Many production and operational processes are predictable enough – you, as the business owner or manager, have sufficient control over what’s going on, under normal circumstances.
But what about the sales operation? I mean, customers are in control, ultimately. You can’t force somebody to buy something – not legally or ethically (these 2 aren’t always the same thing!).
Well, you can reduce the degree of uncertainty, ambiguity and complexity that often reduces the accuracy of forecasts, by employing a solid, proven process-based approach to every aspect of your sales operation, not just to what happens once you’ve closed the order…
It won’t guarantee you sales success, but it will increase your chances of sales success overall. You’ll still lose some. But you should win more – partly because you’re better at selecting opportunities with a better chance of success for you, and partly because you’re better at ‘working’ those opportunities to a successful conclusion. You’ll also more likely be winning business at higher rates of margin or profit. And none of this needs you to have additional sales resources – such as sales people – or having to work extra hours – quite the opposite, potentially.
In future posts I’ll be exploring what these processes look like and how you can implement them.
For the moment, let me leave you with a couple of useful hints…!
- Identifying the key players in a purchase decision, and understanding their position – how they see the need (or not) for the purchase in the first place, and what business results and personal wins they are looking for…
- Connecting your products, services and/or solutions, in the minds of each key player (especially the very influential ones in this sale), to their individual required business results and personal wins.
- Being very aware of what gaps you have in your knowledge (especially relating to points 1 & 2 above), what assumptions you’ve made, and taking steps, by way of an explicit strategy and plan, to reduce the negative impacts of these gaps and other knowledge, and maximise the positive impacts…
That’s a hint at some of the ‘what’ that is to come in future posts. The ‘how’ also comes later!
Trackback URI
May
16
Trying To Solve Current Sales & Business Problems Can Only Make Things Worse…
Filed Under challenge, fundamentals, informed decision, learning, mindset, sales | 1 Comment
(1 votes, average: 5.00 out of 5) Loading ...I’ve just been reflecting on a couple of conversations I’ve been having with a number of business owners and potential business owners about learning from the mistakes of the past, and the mistakes of others.
It’s an interesting debate, as you’ll soon see.
On one hand there are those who feel that every effort should be made to uncover the root causes of what went wrong, analyse what happened and why, and use this as the basis for a strong, robust strategy and plan to avoid these problems in the future. I must admit, as a former engineer, this position has a lot of merit.
On the other hand there are those who feel that looking to uncover the root causes and do the analysis runs the risk of focusing on the past, of taking valuable and limited time that could be spent on more useful or value-adding activities. This too is a position that has merit!
So, what to do, which one to choose?
Before choosing, let’s just stop and think for a moment.
Some of you will know I trained and practiced as an engineer (OK, it was a while ago, but still…!). You’ll also know I have a solid background in continuous improvement too, with a heavy emphasis on analysis and data.
So you’d be forgiven for thinking this is an easy choice to make.
Well, it isn’t!
And here’s why.
I know from the experiences I have had, and countless others have had, that where processes dominate a situation in terms of performance, or lack of performance, then performing a root cause analysis – finding out the most fundamental reasons for failure to perform – is the right thing to do.
And selling is a process, right?
So, do the root cause analysis…
EXCEPT…
Sales is not just about process. It’s also about buying, and it’s also about emotion.
I’ve also learned (the hard way, initially…) that when people and emotions play a big, even dominant role, a root cause analysis is often largely a wasted effort in terms of actually contributing to and enabling a better approach and outcome in the future.
Why?
Well, root causes that are, to pardon the pun, rooted in people, are incredibly difficult to find, verify and measure. The analysis becomes too subjective, and this can add to existing tensions in relationships, or more often, create these tensions in the first place.
And because there is limited credibility and agreement about the actual list of root causes and their relative contributions to the overall problem, and plan based on eliminating these root causes is similarly lacking in credibility and buy in – and that leads to problems in implanting any fix, no matter how brilliant the fix actually is.
So, back to the original dilemma – do the root cause analysis, or not… learn from the mistakes of the past & others, or press on, perhaps blindly?
Well, a dilemma in my book, occurs when I’m faced with just 2 choices, neither of which is particularly attractive.
What I try to do in these situations is create a third (or fourth…) option that is more attractive.
And I do the same here.
Option 3 is to do a little of both! Learn from the mistakes while ALSO focusing on how you want your future success to be.
OK, I know what you’re thinking now – you’re thinking that I’m cheating, or fudging the issue somehow.
Well, I beg to differ!
Based on the underlying principles of “Solutions Focus” (see http://www.sfwork.com) I suggest the following to enable you to quickly make some progress:
- Take a look at the problem situation, and get clear (or clearer…) about what the desired outcome was.
- Look for what worked, even just a little bit, even just once, that got things just a little bit closer to the desired outcome.
- Consider doing more of these things that worked. And stopping doing things that didn’t work – this helps you manage your workload too.
The theory (and practice!) goes something like this: when you focus on the problem and why it might have happened, you’re focused on the past and also what you don’t want. Your success lies in the future and what you do want, so focus there!
Sure, acknowledge and pay some heed to past problems and experiences, but don’t over do it. You can avoid this by working through steps 1-3 above. This buys you some progress and this is really valuable in building momentum, motivation, and… hope!
And to get more focus on the future and what steps to take in getting there, work through the steps below:
- Get a very clear picture or description of how you want & need things to be in the future. If part of a team, build this picture together – it’s great for buy-in, team building and motivation!
- Find resources that can help you achieve even just a little of this in the very near future – look to the past, present and future for ideas, examples of what has worked that you can copy and/or adapt. Look to your experiences and imagination, as well as that of others – this can be great for getting buy-in!
- Focus on taking small next steps in the general direction of the desired outcome. Focus on what can be achieved in the next 24-48 hours. Don’t worry too much about a detailed and long-term plan – life has a way of making these pretty useless after a few days or weeks! Once you’ve taken 1 or 2 small steps, take stock – where are you in relation to the desired outcome… And from here, identify the next 1 or 2 small steps you can take to get you headed in roughly the right direction!
Let me know how you get on!
Cheers
Martin
Trackback URI
May
13
How To Overcome Your Biggest Challenge as a Small Business Owner
Filed Under challenge, fundamentals, learning | 1 Comment
(No Ratings Yet) Loading ...I get to see ‘both sides of the tracks’ working with small owner-managed businesses as well as large corporate organisations. You’d think the people doing the selling in these two very different kinds of organisations would have different challenges in many cases, wouldn’t you.
Well, they don’t, at least, not from where I’m standing!
The number 1 biggest challenge they have is the same ting, and it’s personal:
How do I find time to market my business or myself?
For sales people in large corporates, doing administration, servicing existing opportunities and customers – there never seems to be enough hours in the day.
For the small business owner or salesperson in the small businesses, it’s the same, perhaps more so, as there’s less people to spread the workload across…
And if you happen to be the one-person business, often operating from home, you often have the bigger challenge of balancing the needs of the business and the needs of the family.
In working with such diverse situations I get to see some fantastic strategies and techniques where people really make it work.
And I also see some real nightmares! I’ll just focus on the good stuff here!
Clarity of purpose: consider the implications and consequences of not doing any marketing. There’s some simple maths here: zero marketing = zero clients = zero sales.
The trick is to do just the right amount of marketing in terms of time and resource (money!) and also the right kind of marketing, to the right selection of prospective clients. This suggests some kind of sales and marketing strategy is needed – there are so many permutations and options for the kind of marketing and who you market to. Having this clarity of purpose will stop you wasting time (and money) on marketing activities which are misdirected, even if very good.
Focus on who: it’s not just which companies for example that you may want to market to, but what kind of people to market to – job titles and areas of responsibilities – in short, those who influence and/or take the final decision on what & when to buy, and who to buy from…
When you focus on the key influencers and decision makers you avoid wasting time, effort and money on those who have little or no influence in the final decision. This is as true when selling to private individuals (including retail) as it is when selling to other businesses. Again, this suggests some kind of sales and marketing strategy is needed…
Perspective: I don’t agree with those who say that marketing is the number 1 priority task you have. I believe it’s the number 2 priority. The trick is to make sure it doesn’t become #1 or #3, #4 etc.
Here’s why I think this, based on real experiences:
Priority number 1 is to close or bring home business that’s about ready to close, and then deliver it. You can’t assume this will happen by itself – continue to work the opportunity until the cash is in the bank. You wouldn’t believe the number of people who tell me how they lost business at the 11th hour because they ‘took their eyes off the ball’ – or how many tell me how they won business away from a rival at the 11th hour…
If you make marketing the number 1 priority you risk failing to deliver on existing commitments and you lay yourself open to having somebody steal some business off you at that crucial 11th hour.
If you make marketing a lower priority than number 2, you run the risk of reduced or even stalled growth because your competition will be out there, making themselves known, when you aren’t. You can miss out on the chance to win business at the 11th hour too…
But don’t confuse the priority level with level of effort and involvement. Bringing home that almost-won business should need relatively little time at this stage of the sales process, but it does need to be top priority.
Avoid Overkill: so many people I work with have made the mistake of spending whole days doing this. How boring can that get?! Plus, if you’ve read any of Jon Medina’s stuff on how the brain works, you’ll know that you can have too much of a good thing, and you can do too much of a good thing too! You will achieve greater impact when you do smaller bursts of good quality marketing, say 1 or 2 hours at a time…
In short, do it ‘little and often’ – continuously, not just 2 or 3 days a month, mostly clumped together. After all, potential customers don’t confine their buying and searching for their next purchase to just the odd day here and there each month, do they!?
Reframe: replace the question “How do I find time to market my business or myself?” with a more useful and constructive one, like “what can I do to market my business or myself today/now?”
Call to action:
Consider each of these items I’ve described here, and take action on each. The following will help:
- What is the purpose of your marketing activities? In retail, it will be to get customers in to your shop, real or virtual, hopefully to make a ‘buy’ decision quickly. In more complex sales situations several people may be involved, and may need to talk things over with you on more than 1 occasion. Each situation requires a different marketing approach in order to achieve the different outcomes. What outcome do you need at each stage? Base your marketing plan on that.
- Who are your customers likely to be? Who do you want them to be? Who would you rather not sell to? (seriously!)
- Based on your personal and business circumstances, identify ways you can ensure marketing becomes and remains always your number 2 priority. What signs can tell you that it’s not your number 2 priority? How will you look out for these? What actions could you take to put things right if your priorities do get skewed?
- Plan to spread your marketing activities throughout the month, especially if you have (or plan to have…) very busy weeks when you may get little or no marketing done…
- Find a way to easily, conveniently ask yourself frequently: “what can I do to market me/my business right now?”
- Take a look at Dave Allen’s stuff on “Getting Things Done” – especially if traditional time management techniques don’t seem to work well for you!
Let me know how you get on!
Cheers
Martin
Trackback URI
Sep
27
Creating The 4 main Elements Of A Sales Process
Filed Under Year Of Original Content, fundamentals, learning, sales, systems | Leave a Comment
(No Ratings Yet) Loading ...There are at least 4 elements in every successful sales process:
- Marketing & promoting
- Qualifying & screening
- Proposing & closing
- Delivering
Some may argue that marketing isn’t part of the sales process. Well, OK. But marketing is nothing unless it’s supporting the transformation of products & services in to revenue – CASH!
Each combination of industry, market, product & service and seller will need its own variation in terms of what goes in to each of these 4 elements.
In figuring out what goes in to each of these 4 elements you simply have to start and end with your focus being on the customer. It’s not enough that you are passionate about your product or have ideas for a fantastic delivery system. If the customers don’t feel you’re meeting their needs, or they just plain don’t like you, well, you’ve got problems – and not much business…
Ideally you should do some research – talk to customers and find out the outcomes they’d love to achieve, what they want, what they need, how they want and need it, and what has to be gotten right for them to be satisfied – enough to come back for more and/or recommend you to others. Find out also what they don’t want. In short, ASSUME NOTHING!
Find out how they want to be marketed to, communicated with etc.
Identify the ideal customer profile for you – it will reflect your own values and the way you want to do business. You’ll need this when you get to qualify possible leads – how well does an opportunity fit your ideal profile? How serious is the opportunity?
When it comes to proposing and closing, again, ASSUME NOTHING. Confirm all you can. Generate alternative solutions, even look for ways to overcome price objections for example by showing how you can save the customer money elsewhere, even if they go with your solution which is costlier than the competition.
Find out how customers want to have their purchase delivered. What’s the industry ‘norm’ and what scope is there for you to be different, and in which aspects?
Then work back from successful outcomes in each of these 4 elements – as Steven Covey says – “begin with the end in mind” – and identify the steps the customer needs to go through, the decisions they need to make, to achieve a successful outcome. Identify indicators of success for each stage.
Finally, identify & develop actions and activities that you can and should undertake in order to encourage and enable the customer to do their buying actions and decisions – in your favour.
From this approach you will be able to map out in fine detail the process your business has to follow to increase the chances of sales success.
Of course, easier said, or written, than done!
This is just to give a flavour of what’s needed – specifics vary from situation to situation.
- Sales Process: Here is one question every business person wants an answer to
- Creating The 4 main Elements Of A Sales Process
Trackback URI
Sep
26
Sales Funnel: Part 5
Filed Under Year Of Original Content, fundamentals, learning, sales, systems | Leave a Comment
(No Ratings Yet) Loading ...In this post I look at the third of 3 stated functions of a sales funnel.
Help you identify opportunities to improve your sales process
There are 2 main areas where you will always want to improve your sales process:
- Effectiveness
- Efficiency
Your sales process is more effective when the probability of sales success is increased – you convert a greater number of sales opportunities or prospects in to customers that actually pay. To put it another way, instead of converting 1 prospect in 20, or 5%, you may convert 1 prospect in 19, or 5.3%. It’s not much, but it is an improvement – you’d actually be getting, on average, 6% greater revenue than before!
Your sales process is more efficient when you get a greater return or revenue/cash for the same effort & use of resources. For example you get a higher selling price even though you are putting in the same effort as before and the cost of your sales operation per individual sale stays the same.
A more efficient sales operation leads directly to higher profit for each individual sale. If you are also closing more sales for the effort involved, then you are getting more and more of these higher profit sales – that’s a double bonus!!
Having accurate funnel data, even if at times it makes uncomfortable reading, will quickly point you at opportunities for improving either or both the efficiency and the effectiveness. You’ll be able to look at which stage in your funnel is not as good as it could or should be, and in what way. This will guide you quickly and directly towards the kind of actions to take to improve things, instead of guessing your way to a better set-up, or using trial and error approaches, both of which will take more time and money to maybe get you to a better place…
The exact approaches and techniques to use in improving these have had whole books written about them – big books, some with hard maths in them, so I’ll save these details for another article. Just know at this stage that you can get a 25-40% improvement just by using the simpler of these techniques, with no difficult maths involved.
Let me give just one example. Say you want to increase the amount of profit you make in a given time. You know that it’s unlikely in the time available that you can suddenly bring in new prospects and get them all the way through your sales process and to giving you cash. You look at your funnel and determine that improving the ratio of conversions that each stage achieves means you will have more prospects getting through each stage of your funnel, and this will work right away, with what’s already in your funnel – great! Some quick research suggests adopting different wording in your sales letters may help. You commission a professional copy writer to create what you need. It costs you the profit from 2 sales, but that’s OK – soon your conversion ratios are better, and the increased sales not only cover the fees of the copywriter but give you greater close rates – for ever!
- Sales Funnel: Part 1
- Sales Funnel: Part 2
- Sales Funnel: Part 3
- Sales Funnel: Part 4
- Sales Funnel: Part 5
Trackback URI
Sep
25
Sales Funnel: Part 4
Filed Under Year Of Original Content, fundamentals, learning, sales, systems | Leave a Comment
(No Ratings Yet) Loading ...In this part I look at how to access the second of 3 listed functions of a sales funnel.
Set priorities on where to focus next.
You can use your funnel data to see which parts of the funnel are in need of attention. You can only do so much on any given day so, you’d like to focus on doing things that give you a better outcome without working any extra hours. The challenge is to keep your funnel suitably stocked at every stage with enough prospects.
If your sales process converts 1 in 20 or 5% of all the prospects that come in to it at the top or start of the funnel, then for every sale you make you need at least 20 new prospects coming in at the same time. Anything less than this and in short order your funnel will be delivering falling sales revenue…
Your funnel data can help you spot if a particular stage is low in prospects so you can dome something about it in a targeted way.
You see, the tendency of less experienced sales people is to pay the most attention to the prospect that is just about to buy, and very little on the more numerous prospects at the start or top of the funnel or sales process. This is very understandable, but if you’ve been very helpful and supportive of this prospect all the way through, you’ve done about all you can for and with them at this late stage. Sure, keep in touch with them in the right way, but ‘hassling’ them will probably not speed up the sale much, if at all, and may just annoy them…
But if you neglect your early stage prospects and the business of getting more in to your funnel, at some point the pipeline runs dry and then you go in to panic mode – fine if you have enough cash in the bank to survive, but if not, your business is dead.
Generally only one thing kills a business – gets it every time – a lack of cash flow.
To ensure you don’t suffer from this, you have to keep that pipeline or funnel well stocked.
So your priorities will probably be something like this:
- Close the sale with those prospects at the bottom of your funnel – just don’t over play it!
- Get new prospects in to the top of your funnel – if your close ratio is 1 to 20 then get at least 20 new prospects in for every sale you close…
- Work your way down through descending stages in your funnel as you support & interact with the prospects in each of those stages – move them through the funnel one stage at a time…
With this you’ll know how to allocate your available working time and resources…
Simple!
- Sales Funnel: Part 1
- Sales Funnel: Part 2
- Sales Funnel: Part 3
- Sales Funnel: Part 4
- Sales Funnel: Part 5
Trackback URI
Sep
24
Sales Funnel: Part 3
Filed Under Year Of Original Content, fundamentals, learning, sales, systems | Leave a Comment
(No Ratings Yet) Loading ...In Part 2 I mentioned 3 functions a sales funnel can perform. In this post we’ll look at the first of these – forecasting sales.
Sales forecasting
You can forecast future sales income using the sales funnel by looking at how many prospects you have at each stage and taking account of the time a prospect typically takes to move from the stage they are at to actually paying you cash. You also have to take account of the percentage of prospects that drop out at each stage and the likely value of the potential sale.
Say you have 17 prospects at a certain stage, and it will take 3 weeks on average for a prospect at this point to move all the way through to closing the sale and paying you cash. Say that on average about 25% of these prospects will actually go all the way, the other 75% dropping out somewhere along the way. This means that you will have about
17 * 0.25 = 4.25 prospects going all the way.
Well, you can only have whole numbers of prospects! So let’s call it 4.
You are likely to have 4 of these prospects buy from you. If the average sale is worth $45 then you are looking at $45 x 5 or $180 of sales income in 3 weeks, from the prospects at this particular stage in the sales funnel.
Repeat this process for every stage of your funnel and you’ll end up with a forecast of sales income for the future.
This seems pretty reasonable in terms of approach, though it is full of pitfalls and assumptions and while you do get a forecast it can be way off. The reasons for this are that few prospects in most industries actually behave like an ‘average’ prospect. You also need to collect, and keep collecting, accurate data on how your funnel performs and how many prospects fall out at each stage and how long they take to go through each stage. However, get good at collecting and analysing this data and you’ll soon be getting better forecasts.
There are still pitfalls with this approach, and I’ll go in to these in another article but at this point I’d say in my experience have an imperfect funnel as a sales tool is better than not having one… it helps you make better informed decisions…
How does this apply to internet marketing websites where the sales process is gone through pretty quickly – almost to the point of hardly looking like much of a sales process – or funnel?
Each page you ask a prospect to click to, each action you ask of a prospect, could be equated to a stage in your sales funnel. Prospects can and do drop out at any and every stage, but the data is still useful to know in helping you refine and improve your sales process. More on this later.
- Sales Funnel: Part 1
- Sales Funnel: Part 2
- Sales Funnel: Part 3
- Sales Funnel: Part 4
- Sales Funnel: Part 5
Trackback URI
Sep
23
Sales Funnel: Part 2
Filed Under Year Of Original Content, fundamentals, learning, sales, systems | Leave a Comment
(No Ratings Yet) Loading ...In Part 1 I introduced the concept of the sales funnel and gave an insight in to what it isn’t. Now we get in to the meat!
What it is
A sales funnel is sometimes referred to as a sales pipeline or also a sales tunnel.
A sales pipeline is a simple way of acknowledging that prospective customers go through different stages when they are buying something. For example, first they may simply be asking for information, researching options and so on. Your matching sales activity would be to provide them with the information they are asking for, ask more questions about what they are trying to achieve and so on.
For some prospects this will be the end of the road – they’ll either stop everything right there, at this first stage, or they’ll continue, but not with you.
Some will however want to go further. You may suggest a longer (or initial) meeting or telephone call to explore needs and constraints further. Some will drop out at this point, some won’t.
So over time the prospects and you will go through a sequence of activities that lead right up to a sale.
At each stage some prospects will drop out for what ever reason – price, change of mind, priorities, solution fit, didn’t like your hair colour (seriously!) – you name it almost any reason will apply!
This pipeline is often drawn as a funnel with the wide opening at the top. This is because at the wide, top end is where the majority of the prospects will be, in terms of numbers – the width of the funnel represents the number of prospects at that stage in the funnel.
As you go through your sales process you will see prospects drop out at each stage, so the numbers of prospects at each next stage is generally less than the stage before – hence this narrowing effect.
You only truly have a customer right at the bottom of the funnel, when a prospect not only decides to buy from you – but actually pays too!
And it’s possible that some, perhaps many, of your prospects don’t come in to the sales process right at the start, at the top of the funnel. They may come to you in the middle – they’ve done the research or are just fixated on buying what you have – it doesn’t matter because often you can’t know and few sales people find out fully, fearing that if they take the prospect back to the start of the process, the prospect might change their mind and go away – another lost sale in the minds of many a salesperson (even though that’s not true!)
The secret is in making sure that your funnel is populated – you have enough prospects at every level so that you have a good, steady-ish stream of paying customers (giving you cash!) coming out the bottom of it – always!
Why have one?
A sales funnel or pipeline – what ever you call it – has its uses. For example, you can use it to:
- Forecast future income
- Set priorities on where to focus next
- Help you identify opportunities to improve your sales process
There are other ways to do all of the above, but the funnel’s visual and actual simplicity make it the tool of choice for many sales professionals.
The more successful operations actually design their own funnel that reflects the characteristics of the markets they are in and the nature and structure of their own sales processes, though you can use an ‘off the shelf’ funnel structure to get you started. I’d actually recommend you build your own tailored funnel as quickly as possible though…
In part 3 we’ll look at how to access these 3 functions of a sales funnel.
- Sales Funnel: Part 1
- Sales Funnel: Part 2
- Sales Funnel: Part 3
- Sales Funnel: Part 4
- Sales Funnel: Part 5
Trackback URI
Sep
22
Sales Funnel: Part 1
Filed Under Year Of Original Content, fundamentals, sales | Leave a Comment
(No Ratings Yet) Loading ...There seems to be some confusion about what a sales funnel is. From what I can tell, the concept used by sales operations in the larger organisations is different to the definitions being used in the world of internet marketing. As the larger sales organisations were using this term long before the Internet was a reality, and it’s a definition that I’ve found much more useful as a true sales tool, I’m going with that definition.
Before I get in to that I will just take a quick look at the other definitions as they have their own merits and/or potentially dangerous distractions.
What it isn’t
I made a quick non-exhaustive survey by visiting a few forums, and found several ‘definitions’.
One definition is that your sales funnel has various differently priced products. The free and low-cost products exist at the top of the funnel because these will attract the largest number of ‘takers’. As you go down the funnel, as it narrows, you have increasingly pricey products but fewer ‘takers’ or customer numbers, due to the higher costs.
With this definition there is no sense or implication of a sales process. This kind of funnel doesn’t work too well as a forecasting or sales strategy tool.
Should you have a range of products & services at different price points? I guess that depends on the market, though in general I’m inclined to say yes!
What I would say is that assuming there are lower numbers of customers for the higher priced offerings is too simplistic. Some standard analysis techniques will tell you that the middle priced products & services probably bring in the most revenue, closely followed by some of the higher priced items, so focus your resources here. Yet these customers may have first come to you via the free or lower cost items, and neglecting them too much may actually stop the flow of lower-paying customers to higher paying ones (where the bigger profits usually are to be found).
Related to this definition is a similar one, where you have more products at the free/low price points (top/wider part of the funnel) where there are the most ‘takers’ or prospects and converting one of these is more likely if you have a wider range of products and services that connect with a wider range of needs. Over time you convert these prospects in to higher paying customers as you now have a relationship with them and know critical things about them, based on the free and low cost products & services they’ve taken from you.
Again, there is no sense of a sales process and sales tool at work here.
I would say that you operate one of these (or other) strategies, but that you use a sales funnel as I will describe below as part of your sales process. Then you can extract the maximum benefits of greater sales conversions, greater revenues and greater profits.
There are other definitions kicking around, but these two above seem to be the ones most in use.
In the next part we’ll get in to what a sales funnel really is, and the benefits it brings.
- Sales Funnel: Part 1
- Sales Funnel: Part 2
- Sales Funnel: Part 3
- Sales Funnel: Part 4
- Sales Funnel: Part 5
Trackback URI
Sep
21
Sales Process: Here is one question every business person wants an answer to
Filed Under Year Of Original Content, complex sales, fundamentals, sales, systems | 1 Comment
(1 votes, average: 5.00 out of 5) Loading ...There is one question every business person wants an answer to (even if they don’t yet know it!), whether they’re thinking of starting up, or have been operating for a while, and that is…
“… how do I turn my products and services in to cash?”
For those who’ve been in business a little while, you might add “… more cheaply and effectively than before?”
If you can’t turn products and services in to cash, then you don’t have a business.
You simply have an unfulfilled dream…
In my nearly 16 years of being in business every failure I’ve come across (including 1 or 2 of my own!) has suffered the fate you get when you don’t have a good enough answer to these questions.
And I’d go a little further – what ever this process is for turning products and services in to cash – you want to be able to repeat it time and time again…
… perhaps even teach others in your team to do the same…?
I highlighted the word ‘process’ just now because what you are looking for is a sales process, something that is
- Repeatable, so you can benefit from it time and time again, and also teach it to others if needed.
- Manageable, so you can figure out the best way to use and adapt it in order to get the most return for your efforts.
- Consistent, so that it works the same way and gives the same results when you use it the same way.
- Sequential, in that you follow a series of steps (like a recipe), one after the other, in order to increase the chances of sales success.
And I’ll just emphasise that last aspect: increase the chances of sales success.
Why? Because no sales process can guarantee a sale (well, no legal, moral one anyway!).
You know you can’t really force somebody to buy, and nor should you, in my book.
But you can make it more likely that they will buy from you, and enjoy doing so.
If you don’t have an effective, repeatable, manageable, consistent and sequential process for turning products and services in to cash, you’ll never know why or how you got the sales you did get. So when you do have success – and you will (if only a little) – you won’t know really what you need to do again to repeat that success. Sure, you can guess, and you may get lucky, but that’s a hell of a way to run a business!
And if you don’t have this kind of ‘handle’ on your sales process you won’t know what to do and where to do it in order to improve its effectiveness or its efficiency.
Why does this matter?
Well, the effectiveness speaks for itself in a sense – a more effective sales process simply is more likely to lead to success.
The efficiency bit is perhaps less obvious. Operating any process in business costs – if not straight cash then at least in terms of time, effort and opportunity. When you are working ‘Opportunity A’ you can’t necessarily be working ‘Opportunity B’ – and this last one just might bring in more profit…
You need a sales process that helps you target your resources at the best opportunities in order to get the best returns.
So anything you can do (within reason!) to reduce any/all of the costs associated with your sales process means you’ll end up with a bigger profit at the end of the day – more money for the same (or less!) effort.
I guess now you’ll be wondering where you get yourself a sales process from, and what they look like?
Well, you could buy one ‘off the shelf’ – plenty of people will sell you one. But is it right for you?
Possibly.
But probably not. At least, not enough.
So be prepared to build your own.
It will reflect your values and beliefs, the way you like to operate, and, if you have any sense, it will pay a lot of attention to the way your market likes to buy.
Buying is a process too – it may not feel like it sometimes…
And if your sales process is aligned with the way people buy, well, you certainly will be getting a higher chance of sales success!
In the next part of this series on turning products & services in to cash, I’ll be looking at the first steps to creating your own sales process.
- Sales Process: Here is one question every business person wants an answer to
- Creating The 4 main Elements Of A Sales Process