Understanding sales cycles

A small discussion for INC - MBA students

Lets define these
1. Sale
2. Market
3. Product
4. Marketing
5. Positioning
 Few sales ratios
 100:10:1 Cold calls: prospects: Orders
 80:20 split in revenue
 50:50 split in new and old calls
 60:40 split of fixed and variable salary
 Everybody has 24 hours
Only 50% of committed orders are
converted but still commit double the
numbers
Some things that are liked
1. FAB : Feature, Advantages and
Benefits

3. Complaining customers

5. Talk less, listen more

7. MAN level calls

9. Closing techniques
Some things that are not liked
• Sell and run behavior

• Down-to-top approach

• Talking ill about competition

• Over commit and under deliver

• Not covering all possible bases

• Too many demos

 Sales Cycles
• This is customer engagement process

• Sales cycles differ. Product, industry, purchase

value, type of customer [Govt/ corporate/firm],
their buying behavior, mission criticality are
some of the variables

• Sales cycles start from knocking the doors to

Cheque realization [cash in bank ]

• Involvement of top management may shorten

sales cycles for few products

• Govt uses tenders, rate contracts as tools

 SPANCO
• This is the most common and simplest
approach of understanding sales cycles

• SPANCO is more relevant to direct sales. E.g.

Life Insurance, office automation, IT products,
telecom

• Suspecting, Prospecting, Approach, Negotiate,

Close and Order

• Approach: Probe, affect building, Proposal

writing, FAB, Demonstration, Objection handling

• Negotiate: Art of accommodating, never use NO

 Objection handling
• This is part of buying process and denotes interest

• Objections are of two types: perceived and real

• Listen [writing, nodding, eye-contact] test understand,

accept, gain commitment ,draw out other objections [if
any], offer proof / standards, confirm and close

• Major-minor objections: striking off some, postponing

few
 WHY PROSPECTS OBJECT

Psychological

• Dislike decision making

• Reluctance to give up something old for
something new
• Unpleasant previous transactions with you or
your company
• Perceived threat to self image

Logical reasons

• All or part of the sales presentation was

misunderstood
• Prospect is not convinced
• Doubts on product performance, price,
company
Few notable examples
Few notable examples
Few notable examples