When the idea of hosting a ceremony crosses your mind, what is the first thing that you do? Do you prepare ahead or wait until the day of the ceremony arrives to make all the arrangements?

We hope the latter is never the case (fingers crossed).

Similar to preparing well in advance for an upcoming event, defining the sales process should also be done beforehand.

Now, before we move on to stating the importance of sales process, let’s first briefly define what the sales process really is.

 

What does ‘sales process’ mean?

why is sales process important

The sales process is a predefined set of repeatable steps taken to convert leads into paying customers

From prospecting to closing to repeating those steps, having every step defined beforehand adds structure to your company’s sales activities. Furthermore, this uniformity helps sales teams close deals more effectively. 

Let’s explore why the sales process is important to a business.

 

What is the importance of sales process?

It doesn’t matter how many sales reps you have in your company or how exceptionally talented they are. The absence of a clearly defined sales process is equivalent to the absence of smart work. And the absence of smart work will not have a good impact on your revenue. 

 

Here are 9 reasons why the sales process is the ship that will take you to the shore of sales conversions! 

sales process
Top 9 reasons to have a perfect sales process

Keeps everyone on the same page

Imagine a classroom where the teacher is on a different page and the students are each on entirely different ones. What would the outcome of such a situation be?

Learning? No. Confusion? Yes. 

Similar is the case with the sales process. The lack of an organized process will lead to haphazard sales activities that will keep the sales teams from achieving their goals. In order to avoid confusion and increase conversion, every member of the team should know the sequence of steps to be followed. 

 

Saves time and increases efficiency

With a standardized process in place, a sales representative does not waste time doing unnecessary tasks. Knowing what needs to be done next saves the sales representatives a lot of time and allows them to spend time on the most important things. As a result, performance and efficiency are improved.

 

Helps predict sales and revenue

The sales team performs better when they adhere to a standard sales process. The consistency of their performance provides businesses with an accurate understanding of what to expect in terms of closures. Businesses are therefore able to set realistic targets for their teams using such information.  

 

Reduces time spent on training

Sales is commonly viewed as a hands-on job, but that’s not always the best approach. Well, this is an entirely different topic to discuss. 

An established sales process gives salespeople a clearer picture of what is expected of them. Therefore, there is not much time spent explaining every single detail to them. Moreover, the seasoned team members can also provide their newly recruited colleagues with an in-depth tour of all the steps.  

Saving time and resources for both newcomers and businesses.

 

Provides scope for constant improvement

The lack of a defined sales process leaves you in the dark as to where you can improve and what your areas of advantage are. 

If you want to close more deals, you need to know where exactly your strengths and weaknesses are. Formalizing the sales process lets you concentrate your efforts more effectively and provides you greater scope for improvement. 

 

Improves communication across the team

Collaboration between team members can be difficult if each one of them adheres to their own ways. 

Establishing common steps reduces confusion both within the sales team and between departments, for instance, if there is a gap in marketing efforts, the respective department can determine how to bridge the gap, if there is a payment issue, the finance department can respond, and so on. 

 

Gives a clearer picture of the team’s performance

The absence of a proper structure makes it difficult for a sales team to measure anything beyond closures and losses. A standardized sales process provides important metrics to track and analyze. Ultimately, make more informed decisions.

Essentially, the sales process not only helps businesses to understand the specific actions of their sales teams but also allows them to evaluate the impact of their team’s actions.

 

Increases lead conversion rate

The sales team is more likely to identify prospects who are most likely to purchase your product and remain your consumers if a well-defined sales process is in place.

By focusing your sales efforts on the best prospects, you can reduce the amount of time spent on opportunities that do not close and accelerate your sales cycle. Thus, increasing your lead conversion rate.

Related: Know All About Lead Conversion

 

Enhances customer engagement

Relationships with customers are damaged severely if they are pushed to a stage they weren’t expecting. This can also occur if they are engaged inconsistently. 

It is common for sales representatives to qualify an “unqualified” lead. 

But in doing so, they waste time pursuing leads that will never convert. Moreover, they also miss out on opportunities that could have resulted in a successful closure.

Sales teams can initiate stronger customer relationships if their approach isn’t pushy yet genuine to the targets’ needs. Furthermore, these relationships are strengthened if they’re consistently engaging them with valuable services.

 

Conclusion

No matter what you’re trying to accomplish, following a definite process will help save time and achieve greater results. 

As you know, sales is everything that a business needs to sustain itself in this highly competitive business world. But based on the above, it’s simply a fact that you’re losing sales if you lack a standardized approach.