Stages of Sales Process

When we enter the market as a prospective buyer, do we just talk to the seller and then buy the product? The process of sales is much more than just buying and selling. It involves other steps as well. There are many other pieces to consider, such as direct sales, indirect sales, face-to-face sales, or even virtual sales. Closing a sale needs a lot of planning and preparation.

Common belief dictates that if the specific stages of the sales process are followed, the chances of closing the sale at a higher rate are greater. We'll look at each part of the process in detail.

First, however, we need to define what the sales process is.

Figure 1 below shows the various stages of the sales process. Now let's examine this in more detail.

Fig. 1 - The Stages of the Sales Process

Prospecting - sales process and example

Prospecting is the first and most important step of the sales process. It involves finding potential customers and learning about their demands in regard to the product or service. The prospecting of sales can be done with the ‘Who/What/When/Why’ questions. Here are a few of the questions a company and/or organisation needs to answer to understand the requirements of customers for the sales of any goods and/or services.

• What do customers need in terms of your product?

• Where is the customer's location?

• When will they need your product or services?

• Who will need it?

• Why will they buy your product or service?

• How will they make the payment for your product or service?

These kinds of questions help organisations understand the needs of their customers. Also, companies can determine where the customer is based, their demographics, the urgency of need, the reason for buying, and affordability of the product.

Preparation - sales process and example

The next stage after prospecting is preparation. In this stage, the organisation, or salesperson, prepares for the first contact with the customers after researching and understanding the needs of customers, their reason for buying, their logic, affordability for their products/services etc. At this stage, the sales preparation is done in terms of how to approach a customer or how to initiate the discussion with the customer as per their needs. The discussion may be altered from customer to customer or even situation to situation.

Sales process - approach

The next stage is the approach. This is the first time the organisation/salesperson has an interaction with the prospective customer. The interaction may be face-to-face, on the phone, or online. This is one of the most important stages in the sales process as the ‘first impression is the last impression’.

The same is true for the sales process. If the first meeting with the customer, or 'approach', goes well, the chances of a buying customer increase accordingly. However, if the customer is not happy with your approach, they may never come back.

Sales process - presentation

Visuals play a vital role in explaining a concept. Similarly, in the sales process, presentation is crucial. This is the next stage in the sales process, which may involve a demonstration of the working product. Finding out the needs of customers and presenting potential solutions is also important at this stage. Doing your homework can help build the relationship with the prospective customer and nourish it for the long term.

Sales process - handling objections

The next stage in the sales process is handling objections, though the need for this may vary on a case-by-case basis. Sellers must proceed carefully as this step may make or break the deal. All concerns and objections, as well as the background of the customer, need to be understood and addressed.

Sales process - closing

This stage occurs when a customer makes a purchase decision. Generally, if the above steps are followed, the customer may have already decided to buy the product or service. However, if there is still a concern, the salesperson may be able to close the sale through the following methods (see Figure 2 below):

• Creating urgency close: Many sales are closed when urgency for the product or service is created. The salesperson may inform the customer about the limited availability at the given discounted price or create a need in the mind of the customer for the product on an immediate basis.

• Alternative option close: The salesperson may also offer an alternative or substitute, which may match the customer's needs.

• Additional offering close: When customers are offered an extra at the same price, the customer may choose to make a purchase. This option may involve offering an additional service, a warranty, an extra product or anything that may add value for the customer.

Sales process - follow-up

Last but not least is the follow-up process. It is very important to follow up with the customer to build a good relationship with them. Also, word-of-mouth helps in business, and if your relationship with customers is good, they will refer you to other potential buyers. Additionally, follow-up service helps retain customers for a long time and can possibly result in repeat sales or further business opportunities.

Sales may occasionally become very difficult with the high level of competition and the rate of change. Hence, it is very important to implement a solid sales process to close the deal. This is the basis for any kind of for-profit business; however, each organisation may tailor this process to cater to their target customers.