Create clear, controllable processes that help you forecast sales and increase sales. Imagine a situation where your sales manager leaves the company tomorrow. Do you know how many orders are about to close? Do you know your expected sales for the next month? Do you know how much it costs to get a customer? If you answered no to any of the questions, it may be time to create or update your sales process. The sales process defines the steps that must be followed and the roles of the team members. Writing paper sales processes allows you to plan, forecast, evaluate performance, and optimize what you do. To improve the sales process, you can refer to the following 6 steps:
1. Mapping of current processes.
Most companies have an informal selling process, everyone knows what can be done and who has to do it.
The first thing you need to do is to plan these informal processes to have a formal understanding of all sales steps. How many emails do I need to send? How many phone calls have to make? Who are you talking to? Regardless of the blocks in your sales process, you must define them and that becomes your process.
Some examples of sales process steps include:
- Generating leads.
- Send a sending proposal.
- Sales confirmation.
- Delivery (delivery).
- Receiving payment (receiving final payment).
2. Definition of KPIs
Writing down a process will allow you to follow up with leads as they progress from step to step. This allows you to measure how many leads successfully moved through your funnel. You’ll know how long it will take to complete an order based on the average start to finish time.
If you talk to 100 leads over the next month, how many will move on to the next step? 50% or 10%? You can measure them and use them like a KPI.
You can also measure service turnaround time. If it normally takes the sales team 2 days to turn around a quote and that suddenly becomes 10 days, this is a big problem that you need to fix.
Some of the popular KPIs include:
- Number of orders for the month.
- Number of orders in the year.
- Total time for one sales cycle.
- Closing rate of orders.
- burn rate (How much do you have to pay for the sale)
- Average selling price.
- Long-term customer value.
- Cost of customer acquisition.
- Chum rate (How many customers re-order your product or service).
3. Effective monitoring and measurement
Holding sales meetings is a great way to ensure regular review of sales data. The purpose of the meeting is to identify what opportunities are in the funnel and how the prospect is going through the process.
KPIs can be used to measure personal effectiveness. Employees often appreciate transparency in ways to judge them. It could also be a good way to foster friendly internal competition within the team.
“The data gives you clarity and purpose at the sales manager level,” you might ask, “Why is my salesman just sitting at the desk? Why doesn’t he run into the street?” If you have procedures in place to measure your behavior and performance, you won’t ask those questions. “
4. Use technology to simplify the monitoring process
Your next step should focus all of your customers and contact information. This database can be as simple as a spreadsheet, but as your business gets bigger, you will likely need a customer relationship management (CRM) software.
A good CRM system will help you:
- Store all contact information in one place.
- Allows for better information sharing and communication within the team.
- Helps you manage your operational tasks and process steps.
- Automatically track your KPIs.
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5. Start forecasting your revenue
You can think of your process as a channel or pipeline. By measuring conversion rates at each step, you can determine the amount of input needed to reach your sales goals.
For example, if you talk to 100 people and know that we can close a sale with 10 of them, the math is easy. However you have to do the calculations and measure everything. If not, then you’re just judging.
Think of your sales funnel like an inverted pyramid. If 50% of your leads go to the quote stage, 20% go to negotiation and 25% close the sale, you will know that you need 1000 leads to sell 25 orders. product taste.
6. Increase sales
After you have mapped processes and set up forecasts, it becomes simple enough to increase your revenue. You can calculate that to get X sales you have to spend X amount to increase survey calls or pay-per-click advertising to reach more leads in the pipeline.
However, you can gain more by working to optimize existing processes. Process optimization is usually performed for the following purposes:
Increase order size (sell more products). Consider offering discounts on large orders, free shipping on orders exceeding a certain threshold, or selling a premium product and cross-selling.
Conversion rate improvements (sell more often). For example, you can refine your sales scenario, create more attractive offers, and provide additional training for sales staff.
You can see more Top 4 ways to increase sales with social proof to know more ways to increase sales
It’s a competitive market, so if you don’t stand out, your business can be gone tomorrow. How can you get that competitive edge? Take a closer look at your sales process. Out of the 6 steps of your process, which area(s) can you improve?
Thank you and Best Regard!
𝐋𝐞𝐚𝐝𝐞𝐞.𝐚𝐢 – 𝟐𝟒/𝟕 𝐒𝐮𝐩𝐩𝐨𝐫𝐭