What is a Sales Cycle?

The sales cycle is the process or series of steps involved in the sales process, from first contact to deal closure. Sales cycles can vary from industry to industry, but there are some similarities across all businesses. 

A well-managed sales cycle can help companies improve their overall sales efficiency. The goal of any sales cycle is to shorten the time it takes for a potential customer to learn of a product to the point where they convert into a customer. 

This article will look at the sales cycle in detail, why it’s so important to keep in mind during the sales process, and how to improve and speed up your sales cycle so that you get more conversions in less time. 

What are the stages of a sales cycle:

Prospecting

Prospecting is the first stage of any sales cycle. It’s here that salespeople find potential customers, and compare them to the business’ Ideal Customer Profile (ICP). Once they’ve found some viable prospects, they begin the sales process with them, adding them to the pipeline and the CRM.

Prospects can come from word of mouth, cold outreach, or from more advanced searches on LinkedIn. 

Contact

The next stage is to make contact with the lead for the first time, introducing the brand. This could be through a cold call, email, or a message on LinkedIn.

Qualify

In the initial contact, the sales person will do what is called ‘discovery’, asking questions about the prospect to find out more about their needs and circumstances. This helps to qualify the lead, ensuring that your product is a good fit for them, and also that they’re likely enough to purchase that it is worth you allocating resources to the,.

Qualifying leads is one of the most important stages in the sales cycle. It can help shorten the sales process significantly, and start the business relationship off in the best possible way. 

Pitch

The next stage in the sales cycle is the pitch. This is the moment where the lead will start to consider whether the product is right for them. 

A good pitch should be personalized to the lead and their business, explaining how the product or service can solve their problems and make their lives easier. Pitches should be rehearsed and practiced ahead of time, and might even include a live demonstration of the product. 

Overcome objections

The next stage is to reassure the lead that the product or service is right for them. At this stage the lead may bring up concerns, giving the salesperson a chance to explain further, answering any questions they might have. This reduces any concerns and helps build trust and the relationship, getting closer to the lead becoming a customer. 

Close

Closing the deal is what every salesperson is aiming for. This is when everything comes together, the client signs up, and the salesperson makes a sale. Depending on the industry, and product being sold, it can take days, weeks, or even months to reach the point where a deal is closed. 

Trying to rush to the closing stage before the lead is ready is one of the most common mistakes that salespeople make. 

Nurture

The final stage of any sales cycle is to nurture your customers so they return to do business with you again. Depending on the sales cycle, this could take months or even years, but every business relies to some extent on repeat business from existing customers they’ve spent time nurturing. 

When nurturing, some businesses are able to turn customers into brand advocates, who recommend them to others in their network. These customers are incredibly valuable as in-person referrals have some of the highest conversion rates, as they’re already warm leads. 

Why is the sales cycle important in sales?

The sales cycle is important because it provides a clear, practical path for salespeople to follow across the entire sales process, helping keep them on track no matter where they are. If implemented and followed properly, a good sales cycle can improve efficiency, consistency, and revenue. 

Sales cycles help improve sales efficiency 

One of the biggest benefits of a well-implemented sales cycle is that it improves efficiency across the team. A sales cycle can act like a plan, it helps guide salespeople, showing them the steps they need to take to ensure the lead will convert into a customer. 

A strong sales cycle removes any uncertainty: it focuses the sales team and allows them to act with confidence and precision, shortening the time it takes to close a deal. 

Sales cycles help with analysis and improvement

Because a sales cycle is so structured, it’s easy to analyze where things could be improved. Is the team not prospecting enough? Are the leads properly qualified? Are certain channels best for communicating with leads? Is the pitch too aggressive, or not tailored to the specific needs of the lead? All these areas can be analyzed, optimized, and improved thanks to data analytics. 

Sales cycles improve revenue growth

Lastly, and most importantly, a strong sales cycle also helps everyone on the team better understand their role, and what they bring to the team. It gives insights into the sales process, increases understanding of what the lead needs at any given stage of the cycle, and helps salespeople collaborate, all of which is vital to drive growth, having a positive impact on revenue.

Companies with a well-established sales cycle see 18% more revenue growth on average, so there are serious benefits to implementing a sales cycle that everyone on the team understands. 

How Surfe can help with the sales cycle

Surfe can help shorten your sales cycle in a variety of ways, no matter what your business or industry. 

When it comes to prospecting, Surfe’s email finder has a 93% success rate, allowing you to find any prospect’s contact information and then start building a relationship. 

From there, Surfe syncs your contacts and messages with your CRM, saving hours of manual data entry. 

As you progress through the sales cycle, fight against data decay and keep your CRM up to date thanks to Surfe scanning your LinkedIn contacts and comparing them to your CRM data. This allows you to contact leads with confidence, knowing you’ll be able to start moving them through your sales cycle. 

Let’s wrap it up!

A well-researched, well-implemented sales cycle can improve performance across the sales team. It can help align team members, improve efficiency, and ultimately drive revenue thanks to an increased understanding of the business, as well as the needs of the customer. 

Digital tools can help improve and shorten your sales cycle, giving you more time to focus on prospecting, qualifying leads, and making sales.