The first step in the sales process is prospecting. In this stage, you find potential customers and determine whether they have a need for your product or service—and whether they can afford what you offer. Evaluating whether the customers need your product or service and can afford it is known as qualifying.
Keep in mind that, in modern sales, it's not enough to find one prospect at a company: There are an average of 6.8 customer stakeholders involved in a typical purchase, so you'll want to practice multi-threading, or connecting with multiple decision-makers on the purchasing side. Account maps are an effective way of identifying these buyers.
The next step is preparing for initial contact with a potential customer, researching the market and collecting all relevant information regarding your product or service. Develop your sales presentation and tailor it to your potential client’s particular needs. Preparation is key to setting you up for success. The better you understand your prospect and their needs, the better you can address their objections and set yourself apart from the competition.
Next, make first contact with your client. This is called the approach. Sometimes this is a face-to-face meeting, sometimes it’s over the phone.
There are three common approach methods.
Premium approach: Presenting your potential client with a gift at the beginning of your interaction.
Question approach: Asking a question to get the prospect interested
Product approach: Giving the prospect a sample or a free trial to review and evaluate your service
In the presentation phase, you actively demonstrate how your product or service meets the needs of your potential customer. The word presentation implies using PowerPoint and giving a salesy spiel, but it doesn’t always have to be that way—you should actively listen to your customer’s needs and then act and respond accordingly.
Perhaps the most underrated step of the sales process is handling objections. This is where you listen to your prospect’s concerns and address them. It’s also where many unsuccessful salespeople drop out of the process—44% of salespeople abandoning pursuit after one rejection, 22% after two rejections, 14% after three, and 12% after four, even though 80% of sales require at least five follow-ups to convert. Successfully handling objections and alleviating concerns separates good salespeople from bad and great from good.
In the closing stage, you get the decision from the client to move forward. Depending on your business, you might try one of these three closing techniques.
- Alternative choice close: Assuming the sale and offering the prospect a choice, where both options close the sale—for example, “Will you be paying the whole fee up front or in installments?” or “Will that be cash or charge?”
- Extra inducement close: Offering something extra to get the prospect to close, such as a free month of service or a discount
- Standing room only close: Creating urgency by expressing that time is of the essence—for example, “The price will be going up after this month” or “We only have six spots left”