[Posted by Mike Scher August 3, 2015]
I am fortunate to have the opportunity to speak to sales leaders from lots of different companies. Usually these conversations are with a CEO, VP of Sales or CMO at a large company or an emerging / growth oriented company. At some point, the conversation shifts to their initiatives. What’s amazing is how similar the objectives of each sales leader happen to be. The three most common are:
- Growing Deal Size (ASP)
- Shortening Sales Cycle
- Get More Appointments
I think the reason why these three are the most common on the radar, is because they are all interrelated and perhaps part of the same problem.
Let’s take a closer look:
One of the biggest reasons why deal sizes are too low is that sales reps are dealing with tactical buyers and not budget makers. The same goes for sales cycle length.
Longer sales cycles are usually the result of these same tactical buyers needing to get decisions blessed. Lower level buyers often don’t have the clout to fast track a deal through. These “buyers” are not really buyers because they can’t actually “buy” anything. They can say “no” but cannot say “yes”. They have to go to a high-level budget maker for approval and to signoff on the contract.
Last is getting more appointments. When you peel the onion back one layer, you find that the issue is actually getting more appointments with budget makers. While some sales organizations are able to get plenty of appointments, few if any are with high-level decision makers who have bigger problems (that correlate to bigger solutions and deal sizes) and help shortcut sales cycles.
As you are pursuing larger deals, I found this great blog post by Rachel Clapp Miller from Force Management. Force Management is a leading sales effectiveness firm that is comprised of some of the smartest sales minds I know.
I am confident you will find this helpful.