The Sales Cycle – Part I Introduction

    From first glance, sales can look like a disorganized mess, akin to throwing darts blindfolded at a map and getting lucky by finding someone who wants to buy what you're pitching. While sometimes chance plays a large part in the successful conversion of a good number of sales, there is a method to organizing this madness that can improve anyone's chances of more effectively converting sales than just blindly throwing darts. This method is what is commonly known as the sales cycle or sales process and this week the Business Development Report is putting together an in-depth guide for you to follow so that your efforts are as rewarding as possible.

First, what is the sales cycle?

    The sales cycle is a series of events beginning with the prospecting phase where leads are generated and ending in the agreement and follow-through phase. There are many components to each phase but the 5 major components of the sales cycle are as follows:

1. Organizing and Filtering Leads
2. Initial Contact
3. Negotiation
4. Closure and Agreement
5. Follow-up, Rebook

We will be going into each of these phases into more detail in future articles, but to start, you need to understand that the most important characteristic of the sales cycle is that it is never as effective in partial implementation as it is when all of the 5 major components are involved. That said, there are additional steps that one can implement to augment the 5 core components that may increase the likelihood of converting a sale, but even though conventional wisdom may dictate it sometimes more is not better, it is only more.

How does this apply to me?

    For anyone who has practiced trying to hit a target blindly, you know that aiming and throwing based on intuition alone can produce results, but not nearly as often as if you were to look, take aim, analyze and then execute your pitch. In the same way, targeting sales by sizing up your clients is a better way to have more productive results than simply pitching away at every lead in the phone book. Application of the sales cycle, especially in the initial stages of any sales effort will save you time and resources and ultimately increase your productivity in terms of converted sales.

When does the Sales Cycle Start?

    Luckily, as a sales photographer you have the advantage of receiving intelligently sorted leads that have already been filtered to a certain extent so as to target your efforts. Beyond that, the sales cycle is a constant process that does not follow a linear timeline per se. Once a client has been sold, they are not necessarily signing a lifetime contract or agreeing to always consent to the services that you promised. Furthermore, the services that are provided following the original sales process don't always occur as billed. So, if we define a "sale" as a mutual agreement between two parties to exchange goods or services for monetary reimbursement, the "agreement" portion becomes the dynamic component of that definition, meaning it is subject to change. As a sales person, you are responsible for guiding negotiations to that agreement stage, so even if the client initially agrees to purchase what you have to sell, you still have an obligation to ensure that the deal goes forward, and that a client renews as a result of the product being delivered as billed. In that example you can see how the process can jump around from contact follow-up rebook, to negotiation and back throughout the lifespan of the agreement, subject to changes in conditions of the service or good being delivered within the parameters of the agreed upon terms.

Sounds Complicated, I Already Give Up!!

    Don't lose faith yet, even though there are many advanced explanations for the sales cycle, we're going to stick to the basics for your sake and give you a working guide to apply to real life situations. We will go into detail of each of the 5 stages and give you some important dos and don'ts to follow when you're acquiring clients above and beyond the techniques described in the FotoIllusion Sales Manual. As you go through your training, and even if you're already a seasoned veteran at sales, it is always worthwhile to practice identifying the 5 stages for any prospective relationship or deal you are developing. Think of the 5 stages as your roadmap to a sale and follow them. They will not lead you astray.