How to manage your sales process? Part 2 | Startup Xperts

Most of you would have read the “Does Sales Process Outsourcing (SPO) work? – Part I”, that touched upon those phases of the sales cycle that lend themselves to outsourcing. This part of sales process outsourcing article touches upon factors to consider before an organization decides to outsource the whole or a part of their sales process.

One of the most fundamental aspects that an organization needs to consider while contemplating outsourcing is the complexity of the solution, or product, or service that is being sold. At one of the spectrum, the offering could be complex business applications that require customization as per customer’s requirements. Such solutions have a relatively long sales cycle, with potentially face-to-face engagement with the customer. Typical examples include Enterprise Resource Planning (ERP) applications, turnkey solutions and business applications that automate specific business processes.

At the other end of the spectrum are products or solutions offering a specific functionality, with very limited or no customization requirement. Typically, such solutions are sold online, with the entire transaction being consummated without the need for a face-to-face discussion with the prospective customer. Such solutions invariably fall within the self-use category, or backed by a service provider who takes responsibility for delivering the output electronically. Examples include specific document conversion activities, retail products sold online, consumer products, consumer services, selling online courses, etc.

Sales Phase Attributes
Products/ Simple Solution Suitability for SPO Complex Solution Suitability for SPO
Lead Generation Typically well-defined audience Well suited Well defined audience Well suited
Lead Qualification Qualifying criteria for purchase typically well defined.  Hence easy to qualify Well suited Qualifying criteria may at times be elaborate.  A first level of qualification alone will be possible Partially suited
Solution Demonstration Product/Solution features well defined; so product/solution demonstration, service explanation is straightforward Well suited Solution/Product demonstration could involve customer specific aspects Limited suitability.  Only a high-level feature/solution walk through is possible.  Detailed, client focused demonstrations will not be possible
Solution Proposal Solution proposal would essentially be a price quote Well-suited Solution proposal would factor client specific requirements, and would be a comprehensive document;  It would also need specialist/ expertise to prepare Not suited
Negotiation/Closure Since scope of work and price involved is well defined, there is very little room for any strategic negotiation Well-suited.  The possible area where attention may be required is in working out volume discounts Values of proposals involved are high, and negotiations could potentially involve several stakeholders Not suited

Moving towards complex solutions, one realizes that sales success is dependent on selling skills and customer relationship management. While it is possible to identify the various phases of the sales cycle at a broad level, working within each phase calls for a balanced mix of ‘sales’ skills and vertical specific understanding / competencies in the chosen domain.

However, it also remains a fact that generating sales worthy leads remains one of the most challenging aspects of the sales process, regardless of the domain in question. Many a time, organizations are left with fewer options to generate leads: whether widen the scope of the lead generation process through strategic marketing initiatives, or reach out to more customers through telesales activity. When the process is controllable and has lesser risks, it becomes amenable to outsourcing.

To sum up, both marketing initiatives like digital marketing that includes online campaign management, SEO, SEM, etc. and back office sales processes are less risky and should be explored for strategic outsourcing or off-shoring. This ultimately helps them scale up their lead generation area faster, cheaper and better; it helps make use of their financial and people resources more effectively.

Sales process outsourcing is not easy, as it demands for a reliable partner who has the drive, passion and zeal to ensure success with your partnership. However, having identified the right partner, proper set up time is essential to have the right team in place. Effective coaching is critical, before they get on to the live work. Proper systems have to be in place at the outsourced partner’s end for performance monitoring and to take corrective steps, quickly, when required. Reporting mechanism should be simple but robust to ensure transparency between both parties (customer and vendor partner).

Startup Xperts is a business growth consulting firm with an objective to transform CEO’s vision into achievable, actionable goals that deliver results. Our mission is to help companies to steeply accelerate their revenue growth, profitably. Be it family run business, small or medium enterprise or a boutique firm, Startup Xperts have all the right answers to step up their growth. Startup Xperts help clients in a range of service areas including business consulting, strategic consulting, sales and marketing consulting, digital marketing, Sales Process Outsourcing (SPO), HR, Operations and leadership training, sales training and coaching.

To know more about Startup Xperts, visit us at www.startupxperts.com or write to us at info@startupxperts.com
The views expressed in this article are that of the author’s and Startup Xperts is not responsible for this content. In case of any objection in content, IP violations, incorrect or inappropriate information, please inform us at ceo@startupxperts.com. We will do our best to act on it at the earliest.

How to manage your sales process? Part 1

The business of selling, in much of the corporate world, is perceived as a function to which business targets (sales quotas in strict sales-speak!) are handed down, with the expectation that they will be achieved somehow. Sales was perceived as a profession that is invariably personality driven: it is very common for field sales representatives to be viewed as a flamboyant individual who uses the ‘power look’ to intimidate prospects, or uses ‘closing techniques’ to make the prospect sign on the dotted line. In short, sales was perceived as more of an art, rather than as a science.

Although service delivery capabilities and functional expertise is very critical to any business, without the right sales efforts, nothing gets achieved. It is a no-brainer that without sales there are no revenues and hence no growth. Sales, which is such is a critical function, is often not managed in the right perspective. Just pushing the target down the throat does not work anymore. As said before, it is more of an art and there are very few professionals in the industry today who not only understands the sales secrets, but who also able to manage their sales team far more effectively and build high impact enterprises.

Every organization cannot excel in their sales process. More often than not, start-ups, small and medium enterprises (SMEs) will observe that bringing in the right sales talent is one of the most common challenges they face. This challenge becomes more evident when the founders of such organizations come from a strong technology/operations/service delivery background.

With no in-house sales ‘expertise’, the question that comes to anyone’s mind will be – can the sales process be outsourced?

The answer to the question above is a ‘Yes’, as well as a ‘No’!

To understand more about when Sales Process Outsourcing (SPO) can work, and when it cannot, we need to break down the general sales process into various phases, and relate each phase to the organisation’s specific product, service or solution. The objective of this exercise will be to understand how amenable a particular phase will be to outsourcing. Depending on the nature of product or service, the complete sales process, or a few phases at the minimum, will lend itself to outsourcing.

Captured in the table below are the various phases of the sales process, and their amenability to outsourcing:

Sales Process Phase Suitability for Outsourcing Factors to consider before outsourcing
Lead generation through tele-calling A very common activity that is outsourced.
Can be streamlined significantly through the concept of ‘ideal customer profile’
Lead Qualification Can be completely outsourced for products and also solutions having a relatively straightforward functionality
Product Demonstration / Service pitch Where the solution being sold is complex, or lends itself to extensive customization to the prospect’s business needs, this is best done by the organization itself.
If it is a product or services pitch this process can be outsourced.
Proposal preparation As it applies to the Product Demonstration phase;
If it is a product / simpler service, can be managed through ready-made template that can customized for different prospects.
Negotiation/sales closure As it applies to the Proposal phase

From the table above, it is evident that by and large, the first two phases of the sales process (Lead Generation and Lead Qualification) are amenable to Sales Process Outsourcing. The next three phases, namely, Product Demonstration, Proposal preparation, Negotiation/sales closure lend themselves to outsourcing only when the type of solution offers a relatively well defined functionality, with almost no scope for customization. Typically, such solutions can also be sold online as it can be targeted towards self use type.

While contemplating the outsourcing of the lead generation and/or lead qualification process, it is worthwhile to use the concept of the ‘ideal customer profile’. The ideal customer, as the name implies, is a customer that an organisation would like to have in its client list. Even where the product or solution is complex, when the ideal customer profile is well defined, organizations can derive significant improvements in the productivity of their field sales force, since the outsourcing partner is broadly able to qualify leads that are fed into the sales pipeline. Field sales resources ultimately get to work on good quality leads when the ideal customer profile is well defined.

Sales process outsourcing will be a win-win scenario for both the outsourcing organisation and its outsourced partner, provided the ideal customer profile is well defined. Regardless of the product/solution/service focus of an outsourcing organisation, outsourcing their lead generation efforts, and after careful consideration of the complexities involved, other phases of their sales lifecycle will help them significantly improve the rate at which they win deals.

In Part 2 of this post, we will dwell upon a few scenarios where outsourcing various phases of the sales cycle will benefit an organisation.

Startup Xperts is a business growth consulting firm with an objective to transform CEO’s vision into achievable, actionable goals that deliver results. Our mission is to help companies to steeply accelerate their revenue growth, profitably. Be it family run business, small or medium enterprise or a boutique firm, Startup Xperts have all the right answers to step up their growth. Startup Xperts help clients in a range of service areas including business consulting, strategic consulting, sales and marketing consulting, digital marketing, Sales Process Outsourcing (SPO), HR, Operations and leadership training and coaching.

To know more about Startup Xperts, visit us at www.startupxperts.com or write to us at info@startupxperts.com

The views expressed in this article are that of the author’s and Startup Xperts is not responsible for this content. In case of any objection in content, IP violations, incorrect or inappropriate information, please inform us at ceo@startupxperts.com. We will do our best to act on it at the earliest.