Keep Your Sales Pipeline Flowing
Business owners spend a great deal of time and money marketing to many, in the hope of attracting the few to their business.
This process can be likened to a pipeline with a wide mouth narrowing as it goes along. The wide mouth represents the number of prospects you need to get interested in your product, so as to end up with enough conversions to hit your sales targets – the (much) narrower end of the pipeline.
If the pipeline isn’t constantly topped up with new prospects who are then moved through it to be converted into customers, sales become uneven, income is inconsistent, and running the business becomes crisis prone.
Classify and monitor prospects
The stages in a sales pipeline can be different from business to business, and particularly between B2B (business to business) and B2C (business to consumer)type businesses, but there are some essential similarities.
In all businesses there is a need to generate inquiries. The technique may be through advertising, shopfront display, cold calling, word of mouth or networking. In B2B the next steps might involve arranging an appointment with the prospect to establish their needs, making a sales presentation and quoting.
In a retail situation the sales team is responsible for asking the right questions, treating the customer with care and selling the merits of the product. In both, the common aim is to achieve a sale.
The sales pipeline functions most effectively when there is a consistent process that leads prospects through these stages into becoming customers.
The 4 Step formal selling process is
- Negotiate and
Following this path is a prerequisite to effective pipeline management.
The second component is a system that tracks the progress of each prospect through the sales pipeline, so that you always know where every lead stands.
Sales pipeline analysis
The sales pipeline concept can be applied to assess how many prospects you need to reach and convert to hit your sales target.
Do you need to generate 100 leads to get 10 quality prospects to sell to 1 customer? Then to double your customers you’ll need 200 leads and turn them into 20 prospects to get 2 customers.
Now you can make adjustments to your customer conversion process, testing various methods to turn 10 prospects into 2 or 3 customers instead of 1. Alternatively, you can use this information to identify at which stage you are losing prospects (where the pipeline is leaking).
Once you can identify specific leakage points you can apply the appropriate plug.
Too many unqualified prospects wasting your time?
Develop a screening process that will identify tire kickers, bargain hunters, or poor credit risks, and remove them from the pipeline before wasting precious time on them.
Losing prospects at the proposal stage?
Maybe a selling script for your salespeople is needed, or training in how to establish rapport, understand the customer’s real need and build the value of the product in the customer’s eye. For B2B businesses, knowing which stage each prospect is at shows how many sales to expect, (and hence how much income to expect), and when to expect them.
This knowledge will affect business strategy.
If the numbers are insufficient, then more decisive marketing action is required to lure more prospects into the pipeline. If numbers are very healthy, will demand outstrip capacity? Will you need to hire contractors, extra staff or upgrade equipment?
Maintaining the flow
The point of a sales pipeline is to encourage prospects to flow through to the sale. Use your system to keep track of which prospect is at which stage, and feed them information or assistance at the frequency, and using the channel they prefer, so as to move them to the next stage along.
Don’t miss out on opportunities by losing track of likely prospects and failing to follow up.
(Original article sourced from RAN One Pty Ltd)
Building A Sales Pipeline Is The Answer To Healthier Sales
Good times always feel like they will last forever. However, there will come a time when customers are harder to find. The global financial crisis and its consequences showed that when an economy sours, businesses without robust processes tend to founder. Falling sales is a typical sign.
Businesses can reduce the effect of external conditions by working out where future sales will come from and how to win them. This process is called building a sales pipeline because it lets you track a potential customer from the first point of contact through to a completed sale and beyond.
A properly developed sales pipeline will define how many sales you aim to close in a month, quarter or year. Looking back at your track record you can then make forecasts about the number of sales and the following revenue and profit you will generate. In other words, it helps you measure business performance.
The sales data will reveal interesting facts about the skills of your sales team. A salesperson might be great at finding new customers but terrible at closing the sale; another might take twice as long to close as his or her colleagues. Sales staff can undergo training to help them improve problem areas or you could hire someone with complementary skills to your existing team.
A pipeline can also enforce discipline in the sales process and find more sales from existing customers, which is often easier than acquiring new ones. Analysing the reasons for losing a sale can help you understand which questions will lead to a win.
Studying sales as they progress through a pipeline will show that not all sales are equal. Larger deals usually take more effort to win than smaller ones, and knowing the cost of making a sale is important in finding out how much profit you made in each sale.
The more information your sales system delivers, the more tightly you can focus on chasing the most profitable sales. Then you can hand your sales team a detailed picture of your ideal customer, where to find them and how to convince them to say yes
(Original article sourced from RAN One Pty Ltd)
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