Many sales representatives have trouble with accurately forecasting and ultimately closing their deals and many times never discover the reason why they failed. There are plenty of explanations why some deals will never close, and because some sales reps don't effectively qualify their opportunities, they consistently waste valuable time. By answering some simple yet important questions, and following these sales techniques, you will significantly boost your close rate and forecast accuracy while minimizing the time wasted on deals that would never close.
Throughout my career while selling enterprise software solutions, I've performed plenty of deal reviews and still continue to regularly. Whether you're a sales representative or a sales director, you can be more confident in your forecast by analyzing the key aspects of your sales opportunities. Furthermore, you'll be able to easily determine whether or not a deal is going to close within the time frame you expect, and will also be able to quickly and easily pinpoint the business risks you have and the ways to mitigate them.
In most cases, what you don't know about your deals will cause you to waste time and resources, and by building a plan with the needed steps to closure, you will have a defined process to adhere to which will help you get your contract signed in the fastest way you can.
Listed below are probably the most important bits of information and facts you'll want to obtain to determine what stage your deal is at, together with the sales techniques to follow, to better qualify and to seal your strategic deals:
Is your solution a high priority for your customer that's driven by, as well as linked with a corporate initiative supported by executive management? Understanding and demonstrating how your product is linked to that priority will substantially speed up your sales cycle.
Have you presented a proposal clearly detailing the customers priority, how your solution addresses their problem, the investment they need, the financial benefits and cost savings they are going to eventually receive, and the time and effort it will require to implement your solution? You will usually never get your deal finalized until your client has validated your proposal and verified your specific close date.
Have you determined the compelling event that will influence your customer to sign your contract by the date you are forecasting? There's usually a deadline or event that is driving your customer to move forward. Without knowing about that event, or the business impact brought on by missing their deadline, makes it tougher to know when and why they are going to close your deal.
Do you know exactly who the key stake holders are that need to approve your deal as well as the funding for the purchase in addition to their approval process and availability? I've seen many deals slip at the end of the quarter because the primary approvers had not been available or an approval deadline was missed. For example, some large purchases require board approvals that may only take place at specific times during the year.
Is there an approved spending budget, and will the money be lost if not exhausted? If the budget is not approved, is there an exception process that will be implemented? Financial constraints should be determined at the onset of a new product sales cycle to avoid wasting time on pursuits which have no approved funding.
Do you know about what the competition is offering together with what their particular strengths and weaknesses are and how they are considered by your customer? Never assume that you are the only one your customer is dealing with, because many companies are required to consider multiple suppliers prior to selecting a final one.
With respect to your customers procurement process, have you confirmed who will manage and negotiate the business terms, how long it takes, how many people are involved, and who is authorized to approve and sign your legal contracts? Every company has a different process, and many times those who you present and negotiate a preliminary proposal with do not have the very last word. Many times, you will be referred to a purchasing team to complete your deal after you have provided your "bottom line" prices. Be sure that you ask these types of questions to make certain you are aware of the process upfront, and are not surprised by other individuals that step in and request more price reductions and extra terms, well after you thought you were finished negotiating.
Once you understand all of these fundamental elements, and by following these proven sales strategies, you will be in a significantly better position to show the exact value you can deliver to your customer, more accurately forecast when your business will close, and boost your sales with less time and effort.
Throughout my career while selling enterprise software solutions, I've performed plenty of deal reviews and still continue to regularly. Whether you're a sales representative or a sales director, you can be more confident in your forecast by analyzing the key aspects of your sales opportunities. Furthermore, you'll be able to easily determine whether or not a deal is going to close within the time frame you expect, and will also be able to quickly and easily pinpoint the business risks you have and the ways to mitigate them.
In most cases, what you don't know about your deals will cause you to waste time and resources, and by building a plan with the needed steps to closure, you will have a defined process to adhere to which will help you get your contract signed in the fastest way you can.
Listed below are probably the most important bits of information and facts you'll want to obtain to determine what stage your deal is at, together with the sales techniques to follow, to better qualify and to seal your strategic deals:
Is your solution a high priority for your customer that's driven by, as well as linked with a corporate initiative supported by executive management? Understanding and demonstrating how your product is linked to that priority will substantially speed up your sales cycle.
Have you presented a proposal clearly detailing the customers priority, how your solution addresses their problem, the investment they need, the financial benefits and cost savings they are going to eventually receive, and the time and effort it will require to implement your solution? You will usually never get your deal finalized until your client has validated your proposal and verified your specific close date.
Have you determined the compelling event that will influence your customer to sign your contract by the date you are forecasting? There's usually a deadline or event that is driving your customer to move forward. Without knowing about that event, or the business impact brought on by missing their deadline, makes it tougher to know when and why they are going to close your deal.
Do you know exactly who the key stake holders are that need to approve your deal as well as the funding for the purchase in addition to their approval process and availability? I've seen many deals slip at the end of the quarter because the primary approvers had not been available or an approval deadline was missed. For example, some large purchases require board approvals that may only take place at specific times during the year.
Is there an approved spending budget, and will the money be lost if not exhausted? If the budget is not approved, is there an exception process that will be implemented? Financial constraints should be determined at the onset of a new product sales cycle to avoid wasting time on pursuits which have no approved funding.
Do you know about what the competition is offering together with what their particular strengths and weaknesses are and how they are considered by your customer? Never assume that you are the only one your customer is dealing with, because many companies are required to consider multiple suppliers prior to selecting a final one.
With respect to your customers procurement process, have you confirmed who will manage and negotiate the business terms, how long it takes, how many people are involved, and who is authorized to approve and sign your legal contracts? Every company has a different process, and many times those who you present and negotiate a preliminary proposal with do not have the very last word. Many times, you will be referred to a purchasing team to complete your deal after you have provided your "bottom line" prices. Be sure that you ask these types of questions to make certain you are aware of the process upfront, and are not surprised by other individuals that step in and request more price reductions and extra terms, well after you thought you were finished negotiating.
Once you understand all of these fundamental elements, and by following these proven sales strategies, you will be in a significantly better position to show the exact value you can deliver to your customer, more accurately forecast when your business will close, and boost your sales with less time and effort.
