{"id":4103,"date":"2014-01-06T12:00:00","date_gmt":"2014-01-06T17:00:00","guid":{"rendered":"https:\/\/www.wework.com\/creator\/?p=4103"},"modified":"2020-04-03T18:01:24","modified_gmt":"2020-04-03T22:01:24","slug":"secret-building-successful-sales-process","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/secret-building-successful-sales-process","title":{"rendered":"The secret to building a successful sales process"},"content":{"rendered":"<p>At ElasticSales, we\u2019ve had the privilege of working with dozens of early-stage startups, helping them establish their sales processes. Some ask us to build their process from the ground up. Many come to us solely looking for guidance as they develop their own sales processes and teams. In both cases, the best campaigns are those in which the founders are actively involved with developing the process, or have conducted their startup\u2019s early sales themselves.<\/p>\n<p>For tech entrepreneurs without sales experience, here\u2019s how you build a sales process for your startup from the ground up.<\/p>\n<h3>Begin Customer Outreach as Early as Possible<\/h3>\n<p>The best thing you can do to develop your sales process is to get out there as early as possible. That Lean Startup mentality works just as well in sales as it is for development. Spend a week, even a few days, picking up the phone and cold-calling your customers. During these early calls you\u2019ll get a sense of their challenges, objections you might face, and direct customer feedback about your product. You might even realize a key aspect of your product that needs to be tweaked before you push hard into the market.<\/p>\n<p>As a founder, YOU absolutely need to do this before handing it off to someone else. Conducting preliminary outreach to your customers will help you better understand them, their needs and your market place. You can then refine your product as you develop your sales process.<\/p>\n<h3>Do a Full Walk-Through<\/h3>\n<p>Walk through simulated conversations. Begin by finding the lead and travel through the complete sales process. End by handing the customer off to your support team. Do this with colleagues who understand your space, then try your pitch out on someone who doesn\u2019t. (Outsiders quickly notice problems and inefficiencies.) These scenarios not only give you great practice before implementing your process, they\u2019ll help you identify gaps in it. Say on your first call you get a customer\u2019s credit card \u2014 then what? How do you process the payment? Who do they speak to next? Mock calls are a great way to practice your pitch and refine the logistics of a sale.<\/p>\n<h3>Establish Qualifying Criteria<\/h3>\n<p>Qualifying criteria are a list of traits that make someone a good fit (qualified) to buy your product. It sounds easy enough, but lots of young companies have no idea what they need to know about a customer to make a sale.<\/p>\n<p>So how do you develop qualifying criteria and track them?<\/p>\n<p>Common criteria for leads are:<\/p>\n<ul>\n<li>Does your product solve their pain point?<\/li>\n<li>Does your product save them money\/cost?<\/li>\n<li>Does your product save them time?<\/li>\n<li>Is your product in their budget?<\/li>\n<li>Are they using a competitor\u2019s product and paying for it?<\/li>\n<li>How fast can they make a buying decision?<\/li>\n<\/ul>\n<p>It\u2019s best to develop just five criteria based on what you THINK you need to know about a buyer, and then reach out to a subset of customers. Identify those five criteria in the customers, and then see if the criteria need to be expanded, or even cut down, to identify whether they would be a good fit.<\/p>\n<p><strong>Do not<\/strong> get into the habit of marking every lead qualified because \u201cyou had a nice conversation.\u201d Remember, a qualified deal is very different from an active opportunity. An active opportunity is a qualified lead with a value attached to it. This means that you have communicated the cost of the product\/service to the prospect, they understand it, and have expressed that it is in within their budget.<\/p>\n<h3>Establish a Sales Script<\/h3>\n<p>A good call script is a method for you to guide a customer through your sales process from start to finish, while showing them the value of your product\/service.<\/p>\n<p>A call script typically has the following sections:<\/p>\n<ul>\n<li>Introduction<\/li>\n<li>Qualifying Questions<\/li>\n<li>Q&amp;A About Features, Pricing and Next Steps<\/li>\n<li>Asking for the Close<\/li>\n<li>Managing Customer Objections<\/li>\n<li>Establishing Next Steps<\/li>\n<\/ul>\n<p>Developing a script is an iterative process, but it begins with research. Know your product and how it fits into the market, and convey that as simply as possible to the customer. Your script needs to incorporate your qualifying questions (so you know they\u2019re a good fit), common pain points, and benefits around which to position your solution.<\/p>\n<h3>Establish a Conversion Funnel<\/h3>\n<p>A conversion funnel should be built with a \u201creverse\u201d approach. Establish a range of deals you\u2019d like closed over the course of a week or even a month. Then ask yourself how many active opportunities\/deals you need to qualify in order to achieve that goal. This is called a conversion rate.<\/p>\n<p>But how many scheduled calls or demos do you need to perform each week to in order achieve the desired amount of qualified opportunities? Using the conversion rates you\u2019ve estimated (be conservative), determine how many calls\/emails, or leads generated, you need each week in order to schedule that target amount of calls.<\/p>\n<p>The amount of calls or emails you need to send each week is pretty large \u2013 this is the top of the funnel. In turn, this might mean that your \u201cclosed deals\u201d goal might be too large. Start with a number you believe to be attainable but aggressive. Work through the entire process and reach the goals you set out at the beginning of the week.<\/p>\n<p>Once you\u2019ve done that, start increasing your goal by 10 percent each month. You need to have 10 percent month-over-month growth to really have a healthy funnel as a startup.<\/p>\n<h3>Optimize Implementation<\/h3>\n<p>Sales doesn\u2019t end with the close. As a sales person, you need to make sure that the customer is successfully integrated. This means a clean handoff to your support team. As a founder, you\u2019ll quickly find out ways to improve your process and ensure that your customers stick around. This is also crucial in order to secure customer references \u2014 integral in bringing in new business down the road!<\/p>\n<h3>Iterate, Iterate, Iterate<\/h3>\n<p>Just because something works, doesn\u2019t mean it\u2019s the best way to do it. Make sure you are constantly stress testing your process to figure out what\u2019s broken. Maybe your script is still a bit clunky, emails don\u2019t generate the response rates you\u2019d like, or your conversion rates too low. Don\u2019t get stuck doing something because it works well enough. Lack of iteration is what prevents companies from making a good sales process great!<\/p>\n<p>It\u2019s crucial that you, as the founder, conduct some of this early outreach and help develop your company\u2019s sales process. Early customer engagement can provide some of the best insights as you look to improve your product or service. Only once you\u2019ve developed this repeatable process, and know it works, can you confidently hand off sales to a director that can refine the process even more.<\/p>\n<p class=\"finalnote\" style=\"font-size: 15px;\">The\u00a0<a href=\"http:\/\/yec.co\/\">Young Entrepreneur Council (YEC)<\/a>\u00a0is an invite-only organization comprised of the world&#8217;s most promising young entrepreneurs. In partnership with Citi, YEC recently launched\u00a0<a href=\"http:\/\/startupcollective.com\/\">StartupCollective<\/a>, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At ElasticSales, we\u2019ve had the privilege of working with dozens of early-stage startups, helping them establish their sales processes. Some ask us to build their process from the ground up. Many come to us solely looking for guidance as they develop their own sales processes and teams. In both cases, the best campaigns are those [&hellip;]<\/p>\n","protected":false},"author":1051,"featured_media":34190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43902],"tags":[],"class_list":["post-4103","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The secret to building a successful sales process<\/title>\n<meta name=\"description\" content=\"At ElasticSales, we\u2019ve had the privilege of working with dozens of early-stage startups, helping them establish their sales processes. Some ask us to bu\u2026\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wework.com\/ideas\/professional-development\/secret-building-successful-sales-process\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The secret to building a successful sales process\" \/>\n<meta property=\"og:description\" content=\"At ElasticSales, we\u2019ve had the privilege of working with dozens of early-stage startups, helping them establish their sales processes. 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