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Developing Sales Process
By Thomas
Fee Real value exists in a process when the people using
it consider it necessary for their success. Documenting the Sales Process
can be valuable and useful. If the process is a bunch of complicated and
disconnected issues, it is not worth the time necessary to create the
document. If, on the other hand, the Sales Process is documented properly,
it will prove to be a very important asset to sales and management alike. This article suggests an approach to documenting
the Sales Process that is adaptable for any type of sale. It is simple,
yet comprehensive and is applicable to any organization involved in sales.
Using a simple matrix, this model for documentation encompasses the elements
necessary to insure that nothing is overlooked and nothing is left to
chance when it comes to implementing Sales Process. What is
Sales Process? Sales process is the description of the recommended
steps for conducting a sale. For some organizations the cycle is lengthy
and complex. For others, it is simple. In this article, the example given
is for a complex sales process. Don't confuse selling skills with the Sales Process.
Selling skills has steps such as; gain attention, develop interest, create
desire and so on. These concepts describe how selling is performed. The
Sales Process describes the events and activities necessary to conduct
a sale. Why Document
the Sales Process? The importance of documenting
sales process is three fold. A well documented sales process is a: Way to articulate an organization's
approach to selling Tool to manage sales resources
Method for developing a more
accurate forecast Sales managers and reps, alike, understand the need
for a well-defined sales process. Not only does it save time when training
new hires, it reminds all sales people what's expected of them, by providing
guidelines for conducting a sale. Most organizations can identify best practices by
merely describing what their most successful sales reps do. When these
are documented, others who are not as experienced become productive more
quickly by following the steps practiced by top performers. It is also important to understand Sales Process
so the organization has a model, which can be used to identify strengths
and weaknesses in their sales approach and make improvements. Like all
processes, this too, must be continually improved in response to changing
environments, competition and market conditions. Critical
Elements of the Design Sales Process must be customer focused. This means
that it must be flexible to accommodate different types of accounts. The
design must allow the sales rep to have discretion, about which steps
are the most important for a given sales opportunity at a particular time. The process must conform with the typical buying
cycle of the selling organization's prospects. Many sales cycles become
overly complicated when they are designed to include unnecessary steps,
created to satisfy the interests of stakeholders, who are not directly
involved in the acquisition of customers. These elements should be excluded
and the Sales Process conceived to be a tool to be used by field sales. The best approach is to design the process from the
standpoint of how you intend to motivate prospects to choose your solution.
This means building in knowledge about clients and prospects. Involving
customers in development and design is helpful. The process must be intuitive
to the point that it exhibits an understanding of how and why accounts
buy from you. Simplicity is important. Don't make the overall phases
of the Sales Process too numerous or complicated. Start with the basics
and build on them. Most sales processes have no more than 5 to 10 major
elements. Sales processes that are too complicated meet with resistance
and are not used in the field. The Design
Team Make sure that the team assembled to design Sales
Process is balanced. Find out what customers like about the way you sell
and what they don't. All stakeholders should be represented; customers,
sales, management, marketing, customer service, client services, training
and development. It is wise to use an outside consultant, with expertise
in Sales Process, so the project doesn't become internally corrupted. The design process is arduous. When designing a Sales
Process there are a lot of opinions about what's most important. So, to
begin with, there must be a development team leader who is a good listener
and skilled in the documentation process. Participant roles must be defined and tasks assigned
that leverage the strengths of individuals on the team. Time frames for
results must be set and time and resources allotted for completion of
the task. Steps in the design process must be outlined so team
members are in sync with the time and effort necessary to complete the
document. The design must also include a plan for implementation of the
process including assigned responsibilities, timetables and follow up
activities.
Design
Process The most obvious place to begin the documentation
of Sales Process is by identifying the practices of top performers. This
takes some digging, because a lot of sales people are intuitive; they
can execute, Phases of the sales cycle should be identified. These
are the broad elements of the process. They are common to all sales processes
but may require tailoring for specific approaches. Here is an example of phases of
the Sales Process: Prospecting identification
and selection of prospective customers Qualification defining
whether a sales opportunity exists Discovery data gathering,
information exchange, needs analysis Solution demonstration
of compatibility and solution fit Implementation execution
of agreements, hand off to client services These phases are the foundation on which the process
will be built. They should be few in number, simple and descriptive. Make
sure there is logical progression from one phase to the next and that
each phase is defined. Try to avoid phases that emphasize individual accomplishments
in the sale, such as closing. Instead try to make each phase as broad
a possible. Once
the phases of the Sales Process have been identified and defined, use
a simple matrix to identify the steps within each phase which include;
a description of the event or activity, objectives, participants and deliverables.
Steps may be specific or ongoing events or activities in the sale.
The Documentation
Matrix Here is an illustration of a matrix for developing
a Sales Process document:
Across the top, the steps, objectives,
participants and deliverables are defined as follows: Steps describe
the events or activities involved in accomplishing each phase of the Sales
Process. There are several steps within each phase. Objectives describe
the desired results or outcomes of each step. Participants are
those individuals or entities involved in executing each step. Deliverables are
a list of the means, resources and collateral materials available to help
perform each step. Documentation
Process Note, that in our examples, we state a single objective
for each step. In reality, steps may have multiple objectives. Starting
with the first phase, list all of the events and activities used in lead
generation. Here are some examples of the
steps used in prospecting: Step:................... Advertising Objectives:........ Create
leads for sales Participants:...... Marketing,
Advertising Agency Deliverables:.... Media
selection guidelines
Step:................... Direct
Mail Objectives:........ Create
response leads for telephone contact by sales Participants:...... Communications
Department, Advertising Agency Deliverables:.... Marketing
Data Base, lead-tracking system
Step:................... Public
Relations Objectives:........ Create
awareness of products and services Participants:...... Communication
Department, PR Firm Deliverables:.... Public
seminars, press kits
There should be as many steps as necessary to describe
each of the major activities involved in generating leads. Steps may include
general descriptions of advertising, public relations and other ongoing
activities. Those who perform these functions should provide the steps,
objectives, participants and deliverables, as these are highly specialized
activities.
Next, move on to the qualification
phase. Here are some examples: Step:................... Opportunity
assessment Objectives:........ Determine
whether a sales opportunity exists Participants:...... Sales
Rep, Account Deliverables:.... Sales
Plan section on qualification, Buying Readiness Assessment
Step:................... Credit check Objectives:........ Determine
account credit worthiness Participants:...... Credit
Department Deliverables:.... Credit
approval/denial
Step:................... Management
approval of qualified prospect Objectives:........ Approval
to begin sales activity Participants:...... Sales
Manager, Sales Rep Deliverables:.... Go,
no go decision, Sales Plan account information section
Step:................... Plan
RFP response Objectives:........ Schedule
resources to reply to RFP Participants:...... Sales
Rep, Sales Manager, RFP Response team, Admin. Deliverables:.... RFP
response boilerplate Sales Process can be confusing because there is overlap
between the phases. Some steps are complex and extend into other phases
of the sale. The process helps to remind the sales team of two things;
the progress of the sale at a given point in time and the events and activities
they should emphasize at that point in the sale. Once basic qualification is complete, the process
moves on to the discovery phase. Here are some sample steps for
discovery: Step:................... Determine
Client business objectives Objectives:........ Identify
application requirements Participants:...... Account,
Sales Rep, Pre Sales
Step:................... Requirements
analysis Objectives:........ Complete
department surveys, buyer interviews Participants:...... Account,
Sales Rep, Pre Sales Deliverables:.... Sales
plan section on product/services requirements, user surveys Step:................... Project
Risk Evaluation Objectives:........ Determine
potential as satisfied Client Participants:...... Sales
Rep, Sales manager, Client Services Deliverables:.... Go,
no go on potential as Client, ideal customer criteria
Examples of steps for the solution
phase: Step:................... Solution
strategy Objectives:........ Document
solutions to account business problems Participants:...... Sales
Rep, Pre Sales, Client Services Deliverables: Strategy to
win the products/services sale, sales plan section on competitive strategy
Step:................... Solution
demo Objectives:........ Proof
statement of proposed solution Participants:...... Pre
Sales, Sales Rep Deliverables:.... Demo
script, resources to give demo
Step:................... Negotiation
Plan Objectives:........ Develop
negotiation strategy Participants:...... ales
Rep, Sales Manager Deliverables:.... Negotiation
worksheet Step:................... Open
issues resolution Objectives:........ Plan
to resolve open issues which solution does not address Participants:...... Account,
Sales Rep, Pre Sales, Client Services Deliverables:.... Work
arounds, update RFP Implementation is the process of closing the sale,
signing agreements and handing the account off to Client Services. Here are some sample steps for
implementation: Step:................... Implementation
planning workshop Objectives:........ Define
the resources necessary for implementation Participants:...... Client
Services, Sales Rep Deliverables:.... Data
for implementation plan
Step:................... Hand
off to Client Services Objectives:........ Formal
introduction of implementation teams Participants: Client Services,
Sales Rep, implementation teams from vendor and account Deliverables:.... Conference
room pilot For each step, include the objectives, participants
and deliverables, which facilitate or result in the execution of that
step. Sales
Process Document The document that results from this process is a
complete description of the Sales Process from lead generation to satisfied
Client. Along with the document, the latest versions of deliverables,
such as; sales plans, needs analyses, agreements for services, implementation
methodologies and the like should be provided in a reference section. Distribution of the Sales Process document should
be announced at the field level. The introduction should include a review
of the document and description of its purpose and practical ways in which
it can be used. The Sales Process Document is primarily
a reference, so it should require little, if any, formal introduction. Soft published versions of the Sales Process should
make it accessible and easy to use. The document should interface with
other sales systems, already in use. Other
Uses For the Sales Process Document The Sales Process can be used for many purposes other
than just identifying the steps of a sale. Because the account's position,
relative to closing, can be determined, it is a valuable forecasting tool.
Forecast dates can be communicated according to the phase of the Sales
Process each account is in. Part of the development of the document came from
surveying best practices. Therefore, the Sales Process is a good resource
for designing skills based training, designed around the competencies
necessary to execute steps of the process. It can also be used to identify
individual strengths and weaknesses, as managers are able to observe sales
reps handling accounts in each phase of the sale. This document is also a good tool for determining
which accounts require the greatest investment of resources depending
on where they are in the process. This can help managers determine which
sales require the most urgent allocation of resources. Sales reps benefit in many ways from having a well
documented Sales Process. They have guidelines for what needs to be done
in each phase of the sale. The process also catalogs the deliverables
and other resources available from the company to support their sales
efforts. Benefits
of Having A Well Documented Sales Process Having a well documented Sales
Process is inherently valuable; but, beyond this, it provides a framework
for sales organization development, including Awareness of how sales are
conducted Clarifies expectations of
sales and management Provides guidelines for development
of sales opportunities Establishes a common approach
for sales Serves as a management and
coaching tool Helps make forecasting more
accurate Having a well-documented Sales Process is one-way
organizations can simultaneously develop competency while creating a tool
that is useful in the field. About the Author: Thomas
Fee is the founder of Performance Management Consultants.
Performance Management Consultants is dedicated to providing the next
generation of professional development enhanced by technology and coaching
to enable users to change their behavior resulting in improved performance. They have
developed numerous programs and processes to enhance the skills, behaviors
and activities of managers, sales, client service and pre-sales (SE) professionals.
Performance Management Consultants
programs address the specific challenges faced by those working in the
areas of business practice known as Customer Relationship Management and
Complex Sales. |
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