One of the ongoing challenges for salespersons and their managers is keeping activity levels high. If you're not paying close attention it's easy to rest on the last victory (or service the most recent deal) and let the pipeline go empty and then....oops! You've got to build from scratch again and wait for the entire sales cycle to complete itself.
Do you know what your sales cycle is?
How long does it take to go from the point of generating a lead until you say "Press hard, third copy's yours?" One day? Two weeks? Three months? The longer your sales cycle takes, the greater the risk associated with not doing something TODAY to keep things moving.
Does the process have to take this long?
Are there ways to shorten the timeline or reduce the number of steps required to go from "hello" to "I'm buying?" When we talk with manufacturers about production cycle times one of the ways they do it is to set everything up well in the beginning, much like a soda bottle drains fastest when you spin it to create a vortex. What things could you set up well in the beginning that would help the downstream process move faster or more smoothly?
If you were to make your initial contacts based upon referrals rather than cold contacts, what difference would it make to the initial steps in the process? If you were to become known as an expert in your field would prospects be more receptive? Would they call you instead of waiting for you to call them? Is there an efficient way for you to keep in touch with prospects and current customers regularly to help your name stay top of mind with them?
Is the sales cycle the same for every prospect category?
In selling corporate accounts the sales cycle might be 90 days at the quickest, up to 6 months or a year, depending upon the complexity of the project or the structure of the potential client's decision making process. In a small business setting it might be only 2 weeks, because the project investment isn't so great and there's only one person deciding - the owner. Some businesses I know make their decisions on who to work on right now based upon the extent of their cash reserves and on their patience (or lack thereof) for the whale hunting process. They might be thrilled to sell a big gig, but it won't matter if they can't feed themselves until the project materializes.
Can you place a monetary value on each step of the sales cycle?
One person I've worked with was very big on doing cold phone contacts to get things ramped up. At one point he looked at his results and did a calculation to figure out what the dollar value of each phone call was. That way he felt motivated to keep going, because every extra call was earning him $X. Over time he focused on increasing the size of each sale, which translated into a higher value for each new phone contact. That kept him motivated.
Build your business every day - the four point method
One successful method for managing the sales cycle is called the four point system. Your goal is to earn 4 points every day - yes, every day. You get 1 point for acquiring a new lead, 2 points for scheduling an appointment, 3 points for holding an appointment, and 4 points for making a sale. If you have a particularly good day today and sell two projects (8 points) you'll still need to come up with your 4 points tomorrow.
What's that old phrase, "Slow and steady wins the race?" I don't know many sales managers who are all that thrilled about the concept of "slow" but if "steady" is getting results I think that'll do.