Sales Cycle: Definition, Challenges, and Explanations

The Sales Cycle refers to the series of steps a prospect goes through before becoming a customer. It is a structured process that organizes all sales activities, from initial contact to closing the sale.

This cycle may vary depending on the sector and the type of product or service, but its main objective remains conversion optimization.

It is often represented as a pipeline or funnel, illustrating the prospect's gradual progression through the different stages of the sale.

The Sales Cycle helps structure sales efforts and better understand where prospects are in their buying process.

It facilitates action planning, priority management, and resource allocation to maximize the chances of closing a sale.

For businesses, it provides clear visibility into the sales pipeline, which is essential for estimating future results and adapting strategy accordingly.

In concrete terms, the sales cycle begins with the generation of leads or prospects, followed by a qualification phase to ensure that the prospects are a good fit for the product or service being offered.

Next comes the presentation of the offer, handling any objections, negotiation, and then closing the sale with the signing of the contract or purchase.

After the sale, the cycle can extend to customer loyalty, ensuring a lasting relationship and the possibility of additional or cross-sales.

Advantages:

• Enables better organization and rigorous tracking of prospects.
• Facilitates the prediction of business outcomes and deadline management.
• Optimizes resources by focusing efforts on high-potential prospects.

Disadvantages:

• May become rigid if poorly adapted to market or customer specifics.
• Sometimes lengthy in certain sectors with complex purchasing cycles.
• Requires training and constant discipline from sales teams.

In the real estate sector, the sales cycle may include specific steps such as viewing the property, analyzing financing, and signing the preliminary sales agreement.

For a SaaS company, the cycle may begin with a software demonstration, followed by a free trial period before subscribing to a plan.

In B2B sales, the sales cycle is often longer and more complex, involving several contacts, an in-depth analysis of needs, and an extensive negotiation phase.

• Salesforce - Sales Cycle: Resources for effectively managing your sales cycle.
• Wikipedia - Sales cycle: Detailed explanations of the concept.
• HubSpot - Sales Cycle: Complete guide to the stages of the sales cycle and best practices.