Sales processes are important to generate more revenue and achieve business growth. However, it is essential to have the right people to handle the sales cycle stages. For some companies, sales outsourcing is the best option to ensure the effective execution of strategies.
There are two ways to go about it. One, a company can rely on a service provider to handle all parts of the sales cycle. Two, only certain aspects will be outsourced sales.
Introduction to the Sales Cycle
Before anything else, it is crucial to have a clear understanding of what the sales cycle is. Generally, it refers to all the steps necessary to complete a sales process. It can be seen as a roadmap for the sales team.
It can also be considered an organizational chart. The whole process can be divided into specific phases that also show associated activities.
The sales cycle is a blueprint for sales professionals to close a deal with a new customer. Some people may confuse it with sales methodologies. However, the latter is a framework focused on the implementation of the sales cycle.
It is in a company’s best interest to create a sales cycle when there are prospective clients. It allows proper organization and prioritization of leads. It also helps in evaluating the efficacy of the strategies.
Whether a company decides to outsourced sales or hire employees to complete a sales team, understanding the sales cycle is necessary.
While the whole process may vary depending on the product or services and the client’s needs, it typically involves 5 to 7 stages. A company may include all or some of them to address customer needs. Here are the most common:
Prospecting for Leads
This stage is where the company or sales team defines the target audience. It requires evaluating how many potential customers can afford and how much they are willing to spend. It is also crucial to determine during this stage ways how to reach the target audience. Thus, market research is necessary. If possible, there should be a list of potential leads and how the company can contact them.
- Initiating Contact
The first contact is of great importance. How the company contacts potential clients can determine the success or failure of this phase. Consider email, phone calls, or face-to-face meetings. Make sure the chosen approach allows the company to showcase the value of its product or services without bombarding the potential customer with too much information. For instance, some B2B customers may prefer email notifications to schedule meetings. Then, face-to-face meetings will be set so that the vendor can present a sales pitch.
- Lead Qualification
Use the initial contact to ask qualifying questions. Doing this will help determine the needs of potential clients and if they have any pain points. Use the information you gather during this phase to figure out if the prospective clients have a mutual fit with the business so that you can move on to the next step.
- Presentation of an Offer
This phase is crucial as it is the time to convince the customer that the company’s product or service can solve a problem they are facing or satisfy particular needs. During the presentation, the company or sales team can rely on what it has gathered from previous steps to increase the chances of conversion.
- Handling Any Objection
Before buying a product or choosing a service provider, some customers may raise a lot of questions. The sales team or representative may even face a rejection. However, that does not mean that it is time to give up. Be persistent. Consider the client’s concerns and determine if it is possible to clarify the issues and answer their queries. This phase may not be present in some cycles.
- Closing the Deal
Successful handling of objections can lead to positive results. The next step is to close the deal. Find out if the client is satisfied with the purchase decision that they have made. If they said yes, then consider proposing further offers. Negotiate all details and create a proposal based on the agreement. Then, proceed to the signing of the deal.
- Follow-up or Generate Referrals
Closing the deal is not the end of the sales cycle. The company should be consistent in ensuring customer satisfaction. Keep them on board. You can even leverage current clients to generate new businesses. Make sure the company provides the services that the customers require. Good customer service can help.
How Can Outsourcing Benefit your Company’s ROI?
Any investment or service rendered requires a clear return for the company to understand its value from choosing the said product or service. Without a quantifiable return on investment (ROI), companies will have no reason to continue investing. This is especially true when it comes to sales. Companies rely on various factors that can sometimes be unpredictable. The strategies of the team and their abilities also help achieve the results that they want.
For some companies, the best way to optimize this aspect is to consider sales outsourcing. There are several benefits to gain with outsourced sales, especially in providing clear ROI.
Companies will be able to see consistent validation of sales effort. That means they can boost various areas of operations while working with a well-experienced and professional partner can also increase the chances of higher ROI. The expertise sales outsourcing can put on the table will even help save on inefficient efforts and strategies. Additionally, the cost of working with an outsourced sales provider is relatively cheaper than hiring and training internal staff members, which also requires the allocation of office space and equipment.
How to Decide which Part of the Sales Cycle can be Outsourced?
The best way to start is to set the company’s expectations. Doing this can also help determine the necessary tools to implement sales outsourcing strategies. While some firms outsource the whole process, others only choose certain phases to outsource.
Outsourcing does not mean the company has to lose full control. It can set up a program based on its specific needs. Define the sales process and assign the tasks and responsibilities when starting a relationship with an outsourced team. Figure out which areas your internal staff cannot accomplish or those that require expertise. Then, ask the vendor to provide specific services for those tasks.
For instance, many companies choose to outsource for sales execution. That is due to many reasons, including the lack of modern execution skills, having new products or services, expansion to new locations, as well as culture or language barriers.
Final Thoughts on Outsourcing and the Sales Cycle
A sales cycle is necessary to gain customers. It involves various steps and phases. Since the sales cycle may differ depending on the product, service, or customer, it may be best to leave certain aspects to professionals.
Sales outsourcing is a great way to address a company’s needs in terms of attracting new clients or retaining existing ones. Whether the company opts to outsource the whole process or only get help for hard-to-execute phases, outsourced sales can provide various benefits to ensure success and growth.