Thursday, June 17, 2010

Six Phases / Steps In A Sales Cycle

By my reckoning there are six steps (or phases) in a sale. I know that many folks talk about "The Four Steps To A Sale." I like to consider the full range of six. Yes, these can be broken down even further. But for me these fit the bill.

Below are the six steps to a sale:
  1. Need
  2. Awareness
  3. Consideration/Research
  4. Decision
  5. Purchase
  6. Post Purchase Valuation

1 Need

The first step in the sale is a need. There is always a need first. Even in those mythical sales of snow to an Eskimo there was a need. The need was not for snow. But there was a need for something. You can't make a sale without the interest of your customer. And, you can't get the interest of a customer unless it is of personal interest to them -- in a way they understand. That type of interest comes from need.

2 Awareness

This is not awareness in general, although that might be nice, this is awareness of the possibility of a solution to the need. Walking around with a need is one thing. Walking around with a need and stumbling upon the prospect of handling that need is something all together different.

What if the need is for this gosh darn abscessed tooth to stop hurting. Well, believe it life will be much different the moment that individual learns of the existence of something known as a dentist.

So part of the sales process is communicating the existence of a solution to a need. Yelling the word "dentist" will not really get the point across. It would be better to put the word into context so that the connection between dentist and the blissful release from pounding, agonizing tooth pain was made.

3 Consideration/Research

After the customer is made aware that there is the possibility of solutions to a need, they may go into the consideration and research phase of the sale. This is the time when they find out what options they have, weigh the pluses and minuses of the different options, get advice, seek opinions, you know -- do research and consider.

4 Decision

At some point in the process of consideration and research the customer makes the decision to buy. A little alarm goes off in their head and they transition from thinking about maybe perhaps getting ready to possibly buy to "yeah, let's get this."

5 Purchase

Now we get to the part that sales people like, the purchase. Something that some sales people forget to do is "ask for the sale." What I mean by that is the following: when you can tell that your customer has made the decision to buy speak up and ask for the sale. "Will that be Visa or Master Card?" "Will you be taking that with your or shall we have it delivered?"

6 Post Purchase Valuation

Some folks like to think that the sale is over when the customer walks out the door with the item. This is far from the truth. After the purchase there is the part where the customer figures out whether this was a huge mistake or the greatest purchase they ever made. If they figure it was a huge mistake, they may attempt to return the item. If they figure it was the best purchase they ever made, they may tell their friends and family to go buy one too. This is where word of mouth advertising comes from -- from happy customers, not upset folks that regret the day they heard about the product.


What to do about the above steps

Each of these steps offer unique opportunity for a sales person to move the process along -- influence, help, and guidance can be offered at each step. Just ascertaining which phase a customer is in when you speak with them can help you orient yourself.

For the moment, just start by acknowledging the six steps (or phases) to a sale exist. Then start paying attention. Once you know something exists, you'd be surprised how much you can figure out on your own.