How many people in sales really understand the sales funnel, the sales pipeline and the objections that can clog up the process? Success for many companies and start-ups depends on if they can shorten the sales cycle and speed up the sales process. It may come as a surprise to many sales managers that it is not product knowledge or productivity that separates out the good from the average in the race to revenue. The biggest key to unlocking revenue in sales is to understand the buyer’s perception of time.
The ability to move customers (cost of customer acquisition) through the sales funnel fast enough to bring in revenue can be the difference between success and failure no matter how good a business believes its product to be.
Even the sales and marketing gurus at HubSpot stated “buyer’s lack of urgency is the number one objection we face in the sales process.” So for sales teams to be successful, especially start-ups, they have to create a sense of urgency to move prospects faster through the pipeline.
The reality is that in today’s fast paced business environment, time is a scarce commodity. The seller’s time is scarce (need revenue) and the buyer’s time is scarce (need value now). Unlocking this time scarcity and getting the buyer to focus in on it is the key to a repeatable sales process and the means to a healthy sales pipeline.
The advent of inbound marketing and buyers own journey of discovery has seen seller time scarcity work well as a tactic. This tactic works well as the inbound customer is likely to be in the “consideration” or “Intent to buy” phases of the sales funnel, and moving closer to making a purchase. This is where seller scarcity nudges the buyer down the funnel. There are many types of seller scarcity from the instant discount for decision now; daily offer only, limited number of units available at the price, free express shipping or the free trials offering etc.
Buyer urgency presents a greater challenge. How many times have you heard the phrase “Can you get back to me in a month” While sometimes genuine (if qualified), most won’t remember your name by the time you call back a month later
The key to triggering a sense of urgency during an outbound sales call is to get some information about a business goal that needs attention. A sales person time is scare, if a business goal cannot be identified then move on. A question such as when is the latest you need to solve/resolve/have in place X?, is designed to probe as to find an urgent need within the business that justifies the prospect spending time engaging with a sales person.
From experience and monitoring sales processes, I believe a sense of urgency is best addressed after the goal priority phase of the discovery conversation. Once a goal that the seller offering can fulfil has been identified, then explore why it is prudent for the prospect to address the pain now. All sales people should be versed in communicating the negative consequences of inaction and the positive implications of addressing things now. A 3 step approach is to
Probe for negative consequencesProbe into the negative consequences at overall company levelProbe for positive implications
The sales skill and ability to bring a prospect through this dialogue is really important. The skill is for both the seller and buyer to understand the buyer’s priorities and how the sales person can help now.
Without a sense of urgency in sales, buyer desire loses its value
If I was selling data, I would probe how urgently the buyer needs to increase leads in the sales funnel or how urgently the data team needs to provide information to product managers, sales, marketing and finance. Another tactic is to sell risk reduction (use us as a backup vendor) to protect a business against the current supplier not delivering or if they are stretched. Computer and technology companies (we used this at Dell as a beachhead strategy) to invoke urgency as a way to sell products even if only small amount initially.
As part of sales training or as part of the sales interview all sales people should be able to ask and understand these same three questions:
- Why does the prospect need to take action today?
- What are the negative implications if they don’t?
- What are the positive implications if they do?
Ask any venture capitalist or business leader and they will tell you that faster sales cycles are a competitive advantage. Because faster sales cycles enable companies not just to acquire customer faster but to refine their sales techniques quicker, measure sales people faster, and test marketing and lead sources instantly.
But much more important, moving sales faster through the sales funnel means speedier growth, which impacts any fundraising requirements and scaling headcount. For SaaS based start up companies, we know that product-to-market fit is vital, and developing urgency to prospects in the sales processes is equally vital.
Any sales strategy that unlocks time scarcity and motivates the buyer to act now forms the basis of a great sales unit that can stand the test of time.