What is the sales cycle? The sales cycle includes all the activities that a company performs when selling products or services to prospects. It provides a framework for organizations and sales professionals to understand where prospects are in the process of becoming a customer. 

Successful businesses need a steady influx of new customers to thrive and grow. It’s unwise to leave this critical process to chance or use a haphazard array of tactics to secure new business.

Instead, you need a formal sales cycle process that provides guidance to sales teams.

What is the sales cycle?

The sales cycle includes all the activities that a company performs when selling products or services to prospects. It provides a framework for organizations and sales professionals to understand where prospects are in the process of becoming a customer.

Providing a sales framework is one benefit of having a formal sales cycle. A well-structured sales process also helps companies forecast revenues and plan for growth. As sales processes mature, organizations can understand how many prospects they need at each sales cycle stage to achieve desired revenue targets.

Common benefits of the sales cycle

• Organizing the pipeline
• Providing a framework for sales activities to guide next steps
• Streamlining onboarding for new sales team members
• Allowing teams to communicate about and collaborate on sales pursuits
• Designing lead nurturing strategies for prospects
• Forecasting sales and revenue to support financial planning

Having a sales cycle supports business growth

Putting effort into structuring and managing your sales cycle can yield measurable financial returns and strong growth potential.

Choosing the right sales cycle for your company

When exploring sales cycle frameworks, you may find various models. One sales cycle model in wide use includes five steps, while another popular model has seven stages. You’ll also find sales cycles with eight, nine, or 10 stages.

Which one is correct? The answer is that you should use the sales cycle approach that is correct for your business.

Another thing to keep in mind is that the length of cycles can vary widely. For some types of businesses, the entire sales process may typically take hours. Often, business-to-consumer (B2C) companies are more likely to have short sales cycles.

By contrast, for business-to-business (B2B) companies, the sales cycle can take months or even years. For that reason, B2B companies may benefit from a more detailed sales process with defined stages and action steps.

A typical sales cycle framework

You may have quick-turnaround sales with a short sales cycle. Or you may need a more expansive sales cycle to align with a longer sales process. Looking at a typical framework can help you clarify the right sales cycle stages for your company.

Lead generation

The sales cycle begins when your company lets potential customers know about your business and what you have to offer. In this stage, your goal is to identify target customers and, ideally, gain permission to contact them.

Both marketing and sales can manage lead generation programs. Here are a few examples of lead generation activities that you may consider implementing:

• Running advertisements online
• Having contact forms on your website
• Giving away free content — such as ebooks or white papers —  in exchange for email addresses
• Hosting or participating in events
• Offering a demo or free product trial
• Running a promotion or giveaway
• Sourcing lead or contact lists
• Outbound prospecting via phone or email

Making contact

Through the activities of the first stage, you can develop a steady inflow of leads. Your next step is to begin contacting them. However, you shouldn’t treat all leads alike. Some people may still be gathering information and won’t welcome a sales call. Others may be ready to buy, so that direct sales contact will be valuable.

For example, one lead may have downloaded an ebook from your website and provided contact details to access that information. Chances are, that person is conducting research and not nearing a purchase. Keeping that person on your email list and sending nurturing emails is a smart next step.

Other leads may fill out a form on your website and request a product demo. You should reach out to those leads personally as soon as possible. Asking for a demo is a clear sign that someone is seriously considering a purchase. Acting quickly can help you close a sale.

Lead qualification

After contacting your lead, you must determine if they are the right fit for your business. You need to know if they have a need or problem you can address and the funds to buy your products or services. Also, you need to find out if they can authorize a purchase and when they expect to make a decision. This step is known as lead qualification.

You may be able to accomplish some lead qualification during earlier steps of the sales cycle. If you have an online form, you can ask questions that help you understand if the lead is a good fit for your business.

Another way to gain the insight you need to qualify leads is by having a discovery call. Have a list of standard qualification questions that you talk through during this discussion. You may also be able to collect these insights via email.

Lead nurturing

In some instances, your lead qualification activities will lead directly to a sale. Other times, a lead may not be ready to buy but is a good candidate for a future purchase. You should stay top-of-mind with those prospects through lead nurturing.

In a nutshell, lead nurturing is a structured way to maintain contact with a prospect and guide them toward a purchase. A simple lead nurturing approach is sending monthly newsletters that stay in touch with customers. You can supplement these recurring emails with other outreach, such as special promotions or event invitations, that can motivate some leads to progress toward becoming a customer.

Making an offer

When prospects are getting close to a purchase, they’ll need to assess whether your products or services are right for them carefully. Also, they’ll want to understand pricing. Some companies have set pricing, but other businesses make customized offers to each customer.

One signal that someone is nearing a purchase is requesting a product demo or a trial. This is true in both B2C and B2B sales. For example, someone shopping for a car will want to test drive it before they buy. Someone buying software for an organization may request a demo to see user interfaces, test out the functionality, and clarify customization options. In scenarios like these, prospects are showing an intent to purchase.

You should satisfy their request for a demo, identify their pain points, and articulate how your product or service meets their needs. These insights will help prospects understand how what you offer fits into their lifestyles or businesses. In addition, you should make them a relevant offer. Let them know precisely what you will provide them and how much it will cost. They may accept, or you may move into a negotiation phase.

Negotiating and handling objections

After you have made an offer, your lead will need to respond. They may not accept right away and try to secure more favorable pricing or terms. At this stage, you should be prepared to address common objections that may surface. Here are a few examples of the types of objections you might hear:

• “We’re still considering options.”
• “I don’t want to commit right now.”
• “I’m looking at your competition and may go with them.”
• “Your product seems too complicated.”
• “I’m not sure if you have all the features I need.”
• “I think I can get a better deal somewhere else.”

Make a list of the objections your company frequently encounters and know how to address each one. For example, if someone expresses concerns about learning how to use a new product, share any documentation, online tutorials, or training options you offer and discuss customer support.

Also, if a lead suggests that your price is too high, walk them through a return on investment (ROI) calculation. You can also allow them to propose what they’d prefer to pay and negotiate to a mutually agreed-upon amount.

Of course, paying a lower price may mean sacrificing some functions or features, but the ultimate goal is giving the prospect what they need at a price they find reasonable, while making a profit.

Closing the sale

After reaching an agreement, it’s time to close the sale. This step can involve forms, contracts, and payment. You may have administrative tasks to complete, such as adding the customer to a database or updating your sales pipeline.

During the sales process to date, you may have built a relationship with your prospect. Now that relationship is evolving in a new direction, as your prospect becomes your customer.

For that reason, it’s important not to make closing the sale feel purely transactional. If it makes sense, introduce your new customer to other colleagues or support professionals to help the customer feel connected to your business.

Take time to help customers schedule any next steps —such as training or follow-up visits. Actions like those can make new customers feel reassured that they have chosen a company that cares about quality service and fostering strong bonds with customers.

Putting your sales cycle to work for your business

No matter the size or focus of your business, having a sales cycle is a must. A sales cycle gives your team a structured process and a common set of milestones. You’ll avoid confusion about where different leads are in the sales process and empower team members to work together on sales pursuits. As you strengthen your sales cycle, you can convert more prospects to customers and see your revenues climb.

While there are typical sales stages, there is not a one-size-fits-all sales process that works for every company. You should examine your internal practices and understand how customers buy from you, and create a sales cycle that works for your business.

No matter how many stages you choose or how long your sales cycle lasts, you’ll need to generate a steady influx of leads for your business. You’ll also need to make contact with leads, discern whether they are a good fit, and nurture them toward a sale. Some leads may convert quickly, but others may take time. As sales near closure, you may engage with activities such as demos, providing offers, and negotiating final terms.

Although closing a sale brings one chapter to an end, you’re embarking on the next phase of a relationship with your new customer. Build on the bonds you’ve developed during the sales cycle to foster loyalty and grow your business.

Get high-quality content to support your sales cycle by talking to a content specialist at ClearVoice today.

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What is a marketing qualified lead (MQL)? A marketing qualified lead is a lead that has come in thanks to your marketing outreach. Your MQLs have taken some action — such as signing up for an email list or downloading content  — to let you know they have some interest in your company.

In the traditional sales cycle, an individual becomes an MQL when they move from the “awareness” phase to the “interest” stage. MQLs have taken the first step in letting you know that they may want to become a customer. They may be curious about your company and want to know more but are not ready to have a sales conversation yet.

In essence, an MQL is someone who gives you permission to market to and build a relationship with them. They’re receptive to hearing from you and may be attentive to your marketing offers or sales outreach. You should stay in touch with MQLs and aim to clarify their interests and where they are in the buying journey.

Eventually, an MQL can become a SAL (a sales accepted lead). When this happens, drafting a service-level agreement can help both teams understand how their roles connect.

4 common uses of a marketing qualified lead

1. Clarifying which prospects have some interest in your company
2. Identifying named leads for sales follow-up
3. Segmenting interested leads for educational or nurturing campaigns
4. Targeting higher-potential leads with promotions or discounts to drive conversions

5 examples of MQL actions

What’s the tipping point when a general lead becomes an MQL?  As mentioned before, an MQL has taken a step that lets you know they are interested in your company and what you have to offer. Here are five examples of actions that indicate you can identify a contact as an MQL.

1. Downloading marketing content

Many companies engage in content marketing to help nurture leads toward a sale. While some content, such as blog posts, is freely available, other content types may require people to supply an email address for access.

Being willing to give up email contact information is a good sign that a person may be interested in doing business with you. After all, no one wants an inbox cluttered with irrelevant emails.

2. Signing up for an email list

Sending out newsletters or promotions is another popular marketing tactic. When people willingly sign up for your email list, that is a clear indication that they are interested in your company. They may value what you have to say and want to hear more from you. Alternatively, they may want to buy something from you but want to learn more or get news about any special offers or discounts.

3. Requesting a product demo or signing up for a free trial

When considering purchases, many people like to “try before they buy.” This is true for everything from major purchases, like homes or cars, to software, fitness classes, subscriptions, and more. When someone asks for a demo or trial, they’re definitely interested in what you have to sell. They may still be researching options, but it’s clear they’re looking for what you offer.

4. Adding products to favorites, a wishlist, or a shopping cart

For online stores, shoppers indicate an interest in a product in several ways. If shoppers can like or “heart” an item in your shop, that shows they’ve seen something that has made them take notice. Another positive step is when a shopper adds an item to a wish list. That action clearly reveals that they want a certain item, but may be waiting to purchase it or be requesting it as a gift.

Shoppers may also place items into an online shopping cart to understand the full price with taxes and shipping, even if they’re not ready to buy. If you can send purchase reminders or special discounts to shoppers who add items to favorites, wishlists, or carts, you may be able to motivate a sale.

5. Contacting you to request information

When someone reaches out to you for information on your company, products, or services, they’re interested in what you have to offer. Depending on the nature of your business, you may receive contacts via online forms, mobile apps, lead generation sites, or phone calls. Always follow up on these requests and add people who ask for information to your list of MQLs.

It’s important to know what events should prompt a move from a generic lead category into MQL status for your business. Once you understand who your MQLs are, you can devise strategies to stay top of mind with those high-potential prospects and motivate them to become your customers.

Get content developed for every stage of your target audience’s journey by talking to a content specialist at ClearVoice today.

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What is a sales accepted lead (SAL)? A sales accepted lead is a marketing qualified lead (MQL) that meets specific criteria that validate that the lead is ready to pass along to sales. Your marketing and sales criteria should agree on the criteria that turn an MQL into a SAL.

When you have clear definitions about what leads qualify as a SAL, you can ensure that your sales team focuses on the highest-potential leads. You’ll know that the leads you pass to sales have some familiarity with your brand and offerings, which will make them more receptive to sales contact.

Typically, a SAL is a “warm” lead or possibly a “hot” lead — both of which are much closer to buying than a “cold” lead that knows nothing about you.

Common Uses of Sales Accepted Leads

• Knowing when to shift ownership of a lead from marketing to sales
• Identifying likely-to-buy leads who need targeted or personalized follow-up
• Helping sales prioritize outreach through targeting pre-qualified leads
• Minimizing the time sales team members spend on broad prospecting (e.g., “cold calling”)
• Forecasting revenues by identifying leads in the late stages of the lead generation cycle

How to Identify Sales Accepted Leads

Not every lead that shows interest in your company should be a sales-accepted lead. So how do you know which ones your sales team should pursue?

Many organizations use an approach called BANT — which stands for budget, authority, need, and timeframe  — to determine which leads are sales-ready.

1. Budget: Ideally, a SAL will have the funds available to purchase from you. In some cases, sales professionals may need to help leads clarify budgets or secure financial resources.
2. Authority: Your lead should be able to authorize a sale — or secure the necessary buy-in to finalize the transaction. This situation can occur in both business-to-consumer (B2C) and business-to-business (B2B) purchasing.
3. Need: Your prospects should have a genuine need for what you sell. They should have a problem that you can solve with your services or products.
4. Timeframe: The SAL should be ready to buy within a reasonable time frame. However, “reasonable” can vary widely across businesses. Often, the B2B sales cycle can take six months to a year or more, while B2B purchases tend to occur more quickly.

Having an agreed-upon definition for a sales-accepted lead can make your sales processes more efficient. Instead of chasing every potential prospect, your sales professionals can focus their energy on likely-to-buy leads. It also helps to draft a service-level agreement to keep your marketing and sales teams aligned.

With a well-organized lead generation process, you can gain more customers and more revenue, which is good news for your business.

Get content tailored to every stage of your target audience’s journey by talking to a content specialist at ClearVoice today.

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Customer Relationship Management empowers your business to do just that. Understanding its intricacies can be your ticket to capturing your audience’s attention and nurturing lasting relationships.

In this article, we’ll dive into CRM in the context of content marketing, break down its common uses, and showcase some examples of it in action.

What is Customer Relationship Management?

Customer relationship management (CRM) is the process by which a company handles its interactions with customers and prospects. The term CRM also applies to the technology used for managing customer data and interactions.

The History of CRM

For many companies, a CRM solution is a mission-critical solution that manages customer data across the entire customer journey, including marketing, sales, and support.

With CRM software, companies can house key customer details — including purchase and contact history — in a single place accessible to anyone in the organization. That way, people from various departments can collaborate to deliver high levels of service to customers.

Contemporary CRM solutions have their roots in the earliest database marketing and contact management software. Those tools allowed companies to create the first centralized storehouses of customer data.

Before those innovations, individual sales professionals typically maintained a roster of their contacts on their own. In today’s organizations, CRM solutions break down internal silos and allow anytime-anywhere access to customer data to anyone who might need it.

Common Uses of CRM

The CRM software market is the biggest in the world and expected to top $43.5 billion by 2024. Here are some common uses for CRM software.

• Storing and organizing customer and prospect data
• Identifying potential sales opportunities
• Managing marketing outreach
• Recording customer service issues
• Allowing access to customer information to various departments, including marketing, sales, operations, and customer service

5 Examples of Customer Relationship Management

After getting to know what CRM means, you can start to understand how businesses use CRM principles and concepts to fortify customer relationships. You can consider your own experiences as a customer to know how CRM touches people’s lives every day.

1. Automated marketing outreach

If you’ve granted permission for companies to connect with you via email or text, chances are your contact data is in their CRM systems. Every time you receive an automated message  — such as news about a promotion or an email with a birthday discount — that’s CRM at work.

2. Streamlined customer service

CRM solutions keep track of customer contacts so that service representatives can know all the times you’ve been in touch with a company before. This can be a big time-saver any time you need to contact a company.

For example, if you have to contact a company with a repair or warranty issue on a big-ticket time, you may need to reach out multiple times to provide information or check on the issue status. When agents look up your contact history and find records of your interactions, they engage with CRM solutions.

3. Seamless cross-channel experiences

Today’s customers often use multiple channels to engage with brands. You may make purchases in stores and online and engage via chat, email, or phone for customer support.

With a robust CRM solution, companies can keep track of all these interactions, no matter when or where they happen. That way, your complete history is available to service professionals so that they can know your value as a customer and treat you with the respect you deserve.

4. Retention of high-value customers

It’s a well-known business adage that it’s far less expensive to retain an existing customer than attract a new one. Through its CRM solution, companies can know which customers do the most business with them and develop strategies to boost customer loyalty.

Have you ever received a thank you after making a purchase or an exclusive, customer-only discount? Those are examples of the CRM strategies companies use to retain customers.

5. Reengagement of dormant customers

You may only buy from some brands occasionally — and some may fall off your radar together. A CRM solution can help companies identify inactive customers and send targeted re-engagement campaigns.

Without question, CRM is instrumental to today’s businesses. As CRM solutions capitalize on cloud and mobile technologies, they are expanding their functionality and potential even more. There’s no doubt that CRM will maintain its stature as an essential business solution in the years ahead.

How’s Your Customer Relationship Management?

If you want to boost customer retention and loyalty, you need high-quality content that answers questions and solves problems And if you’re looking for help implementing a robust CRM process into your business, ClearVoice has got you covered. Talk to a content specialist at ClearVoice today, and we’ll get you driving engagement and growth in no time.

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What is total customer value (TCV)? Total customer value is the relationship between what a customer pays and what he or she receives when making a purchase. You can use TCV to assess the experience you deliver to customers and determine fair pricing for your offerings.

TCV helps you understand what customers value when doing business with you. When you assess TCV, you need to think about all of the costs and the benefits of buying from you.

Costs and benefits aren’t just monetary — think about your own buying experiences. An efficient sales or shopping process that saves you time benefits you. If you need assistance, you may appreciate quality customer support. Also, you may gain image or status by selecting a brand with an esteemed reputation.

Your total costs related to a purchase can include the time and energy you expend to make it happen. If you wait days for an ordered product to arrive and have to review online tutorials to use it, that’s a time-related cost. Stressful buying experiences or poor service are intangible costs that can diminish the value of a purchase.

Common uses for total customer value

• Determining the perceived value of your products and services
• Comparing the value you deliver to customers versus the value your competitors offer
• Considering all the costs and benefits customers experience when buying from you
• Setting fair pricing that ensures customers value what they buy from you
• Understanding why and when your customers may feel “buyer’s remorse” after a purchase

Examples of how to increase TCV

Once you understand TCV, you can find ways to deliver more benefits for your customers. That way, you’ll increase the perceived customer benefits and come out ahead in the value vs. cost equation.

1. Provide a free gift, rewards, or extra service: Give your customers something to show them that you appreciate their business. Loyalty programs that reward repeat purchases are a great way to increase perceived value and fortify customer relationships.
2. Make it easier to buy from you. Streamlining purchase processes and shortening delivery times will benefit your customers. In e-commerce, recurring product subscriptions and one-click ordering are examples of this concept.
3. Strengthen your brand perception and relevance. Strategize ways to make customers feel proud about choosing you. One approach is showcasing your commitment to causes customers care about.
4. Provide standout customer experiences. Go the extra mile for customers whenever possible. Don’t just react to their needs — anticipate them.

Assessing TCV helps you understand your customers’ point of view. When you operate with a customer-centric mindset, you can create products and services that resonate with the market and win you more business.

Learn how high-quality content can provide value to customers at every stage of their journey. Contact us today to start the conversation.

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What is an application programming interface (API)? An application programming interface is code that lets two applications talk to each other. APIs play a big role in information technology (IT) by letting software exchange data and use each others’ capabilities.

A good way to understand how APIs work is to think of them as a restaurant menu. After a customer selects food from the menu, the order goes to the restaurant kitchen. The customer doesn’t know how the kitchen team prepares his or her food. He or she only sees the end result, the delivered food.

In this analogy, think of one piece of software as the customer and the other as the restaurant kitchen. The menu is the means of communication — like the API — between the two. Both the customer and the kitchen interact through the menu to produce a result.

Common Uses for an API

• Allowing logins to applications using existing email or social media credentials
• Paying for e-commerce transactions using payment processors
• Displaying data or information — such as weather, breaking news, or stock market trends — on a device or desktop
• Distributing software updates from a company to its end users
• Providing user location data for applications that need to give directions or identify sites for users

3 Examples of APIs

1. Geolocation APIs

Any time you encounter a website or app that wants to know your precise locations, you are interacting with an API. If you grant access to the API, it accesses the global positioning system (GPS) or Wi-Fi networks to determine where you are.

2. Login APIs

Many websites streamline the login process by letting people use existing credentials for Google, Facebook, Twitter, or other sites. In these scenarios, you are interacting with an API that verifies your account credentials on the platform you selected.

3. Payment APIs

Merchants need to collect payment details from buyers, and that involves several systems talking to each other. If shopping online, you may choose PayPal and interact via an API to confirm your account and fund the transaction. There are also APIs that let merchants accept credit and debit cards, bank transfers, cryptocurrency, and more.

These are just a few examples of the many ways we all encounter APIs in our everyday life. When you understand the power of APIs, you can put them to work linking your business with others and spearheading innovation.

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