Preventing Sales Cycle Creep
Q1 2023 seems to have resulted in extended sales cycles for many companies with some projects being deferred indefinitely. The venture capitalist Tomasz Tunguz recently reported that “The average startup saw a 24% increase in sales cycle from early 2022 to 2023, 60 day sales cycles are now 75 days with enterprise sales cycle increasing even further to 82 days”.
Long sales cycles can lead to increased costs, missed opportunities, and decreased revenue. In this article we'll consider five important strategies to potentially counteract the growth in sales cycles.
1. Start by being realistic.
If your company's average deal closing time is 90 days, it's probable that your deal will take a similar amount of time. To ensure that your sales process stays on track, it's essential to closely monitor your timeline progress at each stage of the process. Make sure to communicate with key buyers regularly and inform them that you will be checking in with them frequently to address any changes in scope or timeline via your sequence of events. By taking these proactive steps, you can help prevent unexpected delays and maintain a clear and effective sales process.
2. Have a clear Single Sales Objective.
One way to combat sales cycles creep is to focus on building a solid single sales objective (SSO) statement. This statement should be framed around the high-priority initiative the customer has identified. Be sure to validate the importance of the initiative, deep dive on why it is a priority and understand how it could be downgraded. By doing so you will limit the possibility of cycle creep and also have a foundation to demonstrate the value of your product or service to the customer, and make it clear how you can help them achieve their.
To create your SSO you'll need to go deep and gather as much data as possible about the customer's pain points and challenges. This will require a lot of research and analysis, but it's worth the effort. Once you have a clear understanding of the customer's needs, you now can formulate a clear SSO statement that outlines the key problem to be solved, by when and how, you should share this with the key buyers to validate its accuracy and mention it at the start of all future meetings with the prospect.
3. Build several solid relationships.
Another strategy to counteract sales cycles creep is to focus on building consensus with the right, high-influence contacts. Rather than trying to sell to a large group of people, focus on building relationships with a group of decision-makers who can help you get the deal done.
This group should be carefully selected based on their influence and decision-making power within the organization. You want to work with people who have the authority to make decisions and who can help you navigate the complex sales process. By building strong relationships with these key contacts, you can streamline the sales cycle and move towards a successful outcome.
4. Provide a compelling story.
To counteract the growth in sales cycles, you'll need to lay out a clear case for change with your prospect’s organization. Your champions will need to be able to tell a compelling story about why they should invest in your solution. To do this, you'll need to provide them with a clear and concise message that outlines the benefits of your product or service.
Your narrative should be framed around the customer's pain points and challenges and should demonstrate how your solution can help them achieve their goals. By providing a clear and compelling narrative, you can guide your champions' internal conversations and help them make the case for your solution to other decision-makers within the organization.
5. Check in with yourself.
Avoiding sales cycle creep can be challenging, especially during economic downturns when there's a sense that everyone is experiencing the same problem. However, it's important to maintain a positive attitude and take proactive steps to keep things on track. Start by cultivating a strong sense of self-belief and confidence in your abilities. Then, make a habit of regularly reviewing and updating your sales process to identify areas for improvement. By taking these positive actions, you can stay focused and motivated while working to prevent sales cycle creep.
In conclusion, managing the sales cycle can be a major challenge for businesses, but by following these five strategies, you can counteract their growth and move towards a successful outcome. By focusing on building a solid SSO, consensus with key decision-makers, and laying out a clear case for change, you will streamline the sales process and achieve your goals.