A winning sales process is the mainstay of success for business organizations. After all, selling generates revenues and profits that keep a business afloat. You may have an effective system in place, but it likely becomes redundant at some point. Not paying attention is risky because a sub-optimal process can cause a loss of revenue and customers. While there are no proven ways to identify flaws and gaps in the sales process, you can definitely spot some indications showing something is amiss. Here are some signs that you must consider updating it sooner than later.
Sign #1- Your sales cycle is painfully long
A long sales cycle with several unnecessary steps is a reason to worry. It wastes time and increases customer acquisition costs, and both are critical concerns for a business organization. You can assess the length of the cycle by checking historical trends and industry statistics. For example, B2B companies typically close a deal within 4-6 months. Anything longer than usual means a change is impending.
Sign #2- You cannot track performance
Ideally, you should be able to track your current sales process to validate its efficacy. Tracking and analysis enable you to find gaps between the current and expected results and implement measures to address them. The key metrics to follow include lead response times, average customer lifetime value, conversion rates, revenue per product or service, total revenue, and year-over-year growth. You must consider an update for your sales process if you cannot track one or more of these metrics.
Sign #3- Prospect feedback is not great
Your sales process may require a makeover if your team is not doing a great job. Prospect feedback can give you a fair idea in this context. Nothing feels worse than hearing negative comments from customers. You must consider reworking your hiring and onboarding process to get the right people on board and train them well enough. Additionally, Automating sales ramp can be an ideal solution as it aligns new reps to company processes sooner than later. The good thing about enhancing your team is that it strengthens your core for the long haul.
Sign #4- Market expansion or new product launch is on the cards
Reworking your sales process may be a good decision when you plan to venture into a new market or launch a new product. You will have to provide your clients with additional information, find a target customer base, and define the buyer journey afresh. You cannot undermine the value of a new process to guide and train your reps on handling new clients and closing deals.
Sign #5- Your budget has changed
Budget changes are imminent as your business expands over the years. It is a clear sign to realign your sales process with a fresh budget allocation. An optimal budget enables you to build a bigger team and train existing resources to meet the demand of a growing market and customer base. Both ways, you can set up your business to close more deals and increase your revenues.
Updating your sales process is something you need to do at some point, but timing is crucial. Watch out for these signs, and get your process on track sooner than later.