The Key to Profitable Sales Organizations: Understanding and Adhering to the Sales Process

Many salespeople, sales managers, and CEOs face a unique problem. This issue concerns the sales process, particularly when specific steps are skipped. The challenge is common among sales teams across various industries, and there are different perspectives on its causes and solutions.

This issue is concerning since, according to Harvard Business Review, 28% of companies that master at least three stages of their sales process will see an increase in revenue growth. (https://hbr.org/2015/01/companies-with-a-formal-sales-process-generate-more-revenue). That same study states that companies that had trained their sales managers to manage their pipelines saw their revenue grow 9% faster than those that didn’t. But not just any training will do. Sales managers need targeted training to address specific pipeline management challenges.

Sometimes, the sales process might seem tedious, and salespeople may skip steps out of impatience or eagerness to close a deal. However, skipping these steps can lead to further complications down the line. When a sales team is not following the process that has been identified, it can disrupt the team’s rhythm and efficiency. Some might argue that this is a sign that the process needs to change or that more training is required.

This issue extends beyond the sales team. When a company hires a fractional VP of sales, it brings an outside perspective to evaluate its sales process. The fractional VP will often encounter resistance from the existing team, who may feel their industry is unique. While every business has its distinctive elements, the fundamentals of a sales process are universal.

When salespeople skip steps, it’s typically for one of two reasons. They’re either avoiding a distasteful task, or the sales process was initially designed with a step that isn’t as important as it once thought. To determine the reason, it’s crucial to look at the end of the process. If the close rate is low, it may be because a tough step is being skipped that could prevent closure later. On the other hand, if the close rate is high and a step is still being skipped, it may be a bad step to include.

A well-designed sales process is a significant part of a successful business strategy. It helps forecast and determine cash flows. When a step in the process is skipped, it can affect every part of the business, from scoping to delivery. Therefore, it’s vital to scrutinize the sales process and make informed decisions about process improvement or training needs.

In the selling process, it’s crucial to find out as early as possible if there is a reason for a potential customer to buy from you and if they can actually make the purchase. Sometimes, salespeople want to push this step later in the sales cycle because it’s a more challenging conversation. However, skipping this step can cost the company money if the transaction never happens because the Economic Buyer wasn’t aware of the project.

Skipping steps in the sales process can also lead to a lack of sync with the customer. When you talk to an economic buyer early in the process, you can determine if any other requirements or expectations need to be met. This information can change the content of your sales pitch and increase your chances of making a sale.

Overall, it’s essential to follow your sales process in depth and not skip steps. If a step is skipped, it could mean a problem that needs to be addressed. It’s essential to allow your sales process to drive the prospect’s decision-making process and get validation for each step along the way.

Ultimately, the goal is to contain customer acquisition costs, add more value to the customer, and drive more profitable sales organizations. A well-implemented sales process can help achieve that goal and lead to a successful business.

Here are four actionable steps you can take today to improve your sales process:

1. Evaluate Your Sales Process: Look closely at your existing sales process. Are there steps that are frequently skipped? If so, try to understand why. Is it because the step is tedious or unimportant? Or is it because it involves a tough conversation that salespeople would rather avoid? Identifying the problem is the first step toward finding a solution.
2. Train Your Team: If specific steps are skipped due to a lack of understanding or willingness, it might be time for additional training. Ensure your team understands the importance of each step in the sales process and how skipping it could affect the overall sales performance.
3. Engage the Buyer Early: One of the most frequently skipped steps in the sales process is early engagement with the economic buyer. This habit can lead to problems later on, such as missed expectations or a lack of budget approval. Make it a priority to have this conversation early in the sales process.
4. Validate Each Step: As you progress through the sales process, validate each step. This best practice ensures that no step is skipped and helps you gauge the buyer’s interest and commitment. It’s a great way to keep the process on track and increase your chances of closing the deal.