Sales process

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A sales process is a systematic approach to selling a product or service. A growing body of published literature approaches the sales process from the point of view of an engineering discipline (see sales process engineering)[1].

Reasons for having a well thought-out sales process include seller and buyer risk management, standardized customer interaction in sales, and scalable revenue generation. A major advantage of approaching the subject of sales from a "process point of view" is that it offers a host of well-tested design and improvement tools from other successful disciplines and process oriented industries[2]. In turn, this offers potential for quicker progress. Quality expert Joseph Juran observed, "There should be no reason our familiar principles of quality and process enginnering would not work in the sales process"[3]. A sales team's fundamental job is to move a greater number of larger deals through the sales process in less time.[4]

Specific steps or stages in a sales process vary from company to company but generally include the following elements:

  1. Initial Contact
  2. Application of Initial Fit Criteria
  3. Sales lead
  4. Need identification
  5. Qualified Prospect
  6. Proposal
  7. Negotiation
  8. Closing
  9. Deal Transaction

Mapping a process provides a starting point for further careful analysis and continuous improvement[5]. Diagramming a process flow is considered to be one of the seven basic quality improvement tools[6]. Elements in the list above (among many others) have been described and/or flowcharted in the published literature. Some examples have primarily focused on functions performed by a sales "department"[7]. At least one cross-functional approach depicts and integrates a variety of interdependent areas, such as sales, marketing, customer service, and information systems[8].

From a seller's point of view, a sales process mediates risk by stage-gating deals based on collection of information or execution of procedures that gate movement to the next step. This controls seller resource expenditure on non-performing deals. Ideally this also prevents buyers from purchasing products they don't need though such a benefit requires ethical intentions by the seller. Because of the uncertainty of this assurance, buyers often have a buying or purchasing process. The interface between the selling and buying process has also been diagrammed[9].

A formalized sales process is generally more common for companies that either have complex sales cycles, large revenue risks that require systematic assurance of revenue generation, and/or those that choose to use a more consultative sales approach (e.g. Saturn, IBM, Hewlett-Packard).

An effective sales process can be described through steps that walk a salesperson from meeting the prospect all the way through closing the sale. Often a bad sales experience can be analyzed and shown to have skipped key steps. This is where a good sales process mediates risk for both buyer and seller. A solid sales process also has the dramatic impact of forecasting accuracy and predictability in revenue results.

Many companies develop their own sales process; however, off the shelf versions are available from companies such as the Improved Performance Group, Huthwaite International, and Miller Heiman. A large number of these methods have been described by their promoters in books available to the public, primarily addressing tactics employed by an individual sales representative[10][11][12]. These provide a customizable process and a set of electronic tools that can be freestanding or can be integrated if required with the company's SFA, CRM, or other opportunity management system.

[edit] References

  1. ^ Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI: ASQ Quality Press. p. 23. 
  2. ^ William H. McNeese and Robert A. Klein (1991). Statistical Methods For The Process Industries. Milwaukee, WI: ASQC Quality Press. 
  3. ^ Selden (1997). p. xxii. 
  4. ^ Todd Youngblood (2004). The Dolphin And The Cow - How To Sell More Faster With Sales Process Engineering. Acworth, GA, The YPS Group, Inc.
  5. ^ Dianne Galloway (1994). Mapping Work Processes. Milwaukee, WI: ASQ Quality Press. 
  6. ^ Arturo Onnias (1992). The Language of Total Quality. Castellamonte (To), Italy: TPOK Publications on Quality. p. 190-191. 
  7. ^ George A. Smith, Jr. (1995). Sales Productivity Measurement. Milwaukee, WI: ASQ Quality Press. 
  8. ^ George A. Smith, Jr., Paul H. Selden and Fred Burton (2003). Systematic Selling: A Process Map Portfolio. Kalamazoo, MI: Systematic Selling, Inc.. 
  9. ^ Paul H. Selden (November 2000). "The Power of Quality Thinking In Sales and Management". Quality Progress: 58-64. 
  10. ^ Michael T. Bosworth (1994). Solution Selling: Creating Buyers In Difficult Markets. New York, NY: McGraw-Hill. 
  11. ^ Robert B. Miller, Stephen E. Heiman and Tad Tuleja (2005). The New Strategic Selling: The Unique Sales System Proven By The World's Best Companies. Boston, MA: Business Plus. 
  12. ^ Neil Rackham (1988). Spin Selling. New York, NY: McGraw-Hill. 

[edit] See also

[edit] External links

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