1. MM 2.00 Understand Financial Analysis
2.01 Understand sales activities to show command of their nature and scope.

2. The time it takes a qualified prospect to close the sale.
What is a Sales Cycle?
The time it takes a qualified prospect to close the sale.
Pre-approach through delivery of the product.
This means you have already found someone who has a genuine need.
Now it's the time it takes to “progress the deal” with all the relevant decision-makers in that company.

3. What is a Sales Cycle? Cont.
Once a deal "slows down" in your sales pipeline it might NOT close.
"Slowing down" means that the communication between you and the prospect becomes less frequent and the execution of agreed-upon actions becomes slower.
When these things happen your deal has real problems.

4. Length Of Sales Cycle Can Determine How You Manage Time
Longer sales cycles tend to have a lower closing rate and more wasted time
Shorter sales cycles tend to encourage focused attention and quicker decisions
The frequency of compensation is a critical factor for salespeople

5. Length Of Sales Cycle Can Determine How You Manage Time Cont.
The longer the time between critical activity (sales) and results (pay), the easier it is to lose sight of the direct relationship between time use and income.
The result is a loss of income, loss of potential opportunities and perhaps, ultimately, even loss of the business.

6. Length Of Sales Cycle Can Determine How You Manage Time Cont.
The longer the sales cycle for your product or service, the more complex contacts you have to keep organized, the more paperwork and correspondence, the more frequent the travel, the more detailed the management of the account, the more important time management becomes.

7. Factors that affect the length of sales cycles
Type of product being sold
Level of experience of the seller and of the buyer
Relative cost of the item ($15 vs. $450,000)
Prior experience between buyer and seller (or reputation) - Trust
Laws and/or regulations

8. Advantages/Disadvantages of short sales cycles
Better turn times so generally lower selling costs
Better cash flow
Less opportunities for lost sales and wasted time

9. Advantages/Disadvantages of short sales cycles Cont.
Customer can feel rushed
Not enough time to select the correct product
Customer and/or sales person get confused when trying to rush the sale

10. Advantages/Disadvantages of long sales cycles
More time spent ensuring the correct product is selected (better meets the needs of the customer)
Longer consideration time
Less opportunities for returned items

11. Advantages/Disadvantages of long sales cycles Cont.
Increased turn times so generally higher selling costs
Cash flow issues
More opportunities for lost sales and wasted time

12. How to shorten your Sales Cycle
Shortening your sales cycle is one of the easiest and most efficient ways for an organization to increase sales and simultaneously reduce the cost of sales.
There are a number of ways to affect the length of the sales cycle, by far the easiest to implement with the highest rate of return, no technology required, is to always secure a next step with your prospects (leads).

13. How to shorten your Sales Cycle Cont.
“Next steps” can take different forms, could be a face-to-face meeting, a call, or an action taken.
“Next steps” commit the prospect to meeting with you to proactively move the process forward.
“Next steps” should involve some commitment on the part of the prospect.

14. How to shorten your Sales Cycle Cont.
Pre-qualify your prospects by encouraging current customers to give you referrals
Offer information in forms that engage and excite the potential customer (they can read, watch and study before the first or future meetings)

15. Accelerate Your Sales Cycle
Allow sales teams to capture, maintain and continually improve their selling content, and automatically customize it for use in communicating with prospects.

16. 3 Ways to Speed-up Your Sales Cycle
Choose Your Prospects Ruthlessly
Get To The Executives First
Intensify Their Pain

17. Choose Your Prospects Ruthlessly
You want to have a profile of what buying customers look like when you are prospecting.
Profiles will enable you to quickly decide whether to engage in a sales effort.
Prospects who don't meet your profile should be avoided.

18. Get To The Executives First
Not getting to the decision-makers early in the sales cycle is a common reason for lengthy sales cycles.
Executives want to know how you are going to increase their revenues or efficiency, thereby saving money and/or time.
Executive’s biggest fear of salespeople is that you will waste their time with techno-babble.

19. Get To The Executives First Cont.
The strategy is to get their attention with specific stories and questions that dramatize the pain they are trying to avoid. Use specific examples that the customer executive can identify with.

20. Intensify Their Pain
When your sale is low on their priority list, it is because the executives believe they have bigger problems to focus on.
You can influence their perception and priorities by getting them to experience the consequences of the unaddressed problem in advance of it happening.
You want to make this issue/problem feel real in the present moment.

21. Actions that can lengthen the sales cycle
Not preparing properly before meeting the customer (incomplete pre-approach)
Losing track of information
Reviewing already agreed to decisions
Failing to turn in paperwork on time
Failing to make it to appointments or arriving unprepared