Deal Life Cycle

Deal Life Cycle

A sales cycle is a pattern that includes specific stages of the sales process through which deals are made. In this article, we’ll break down some ideas for shortening the sales cycle.

What is a deal life cycle?

The deal life cycle is the length of time that elapses from the first contact with a customer to the conclusion of a deal. In other words, from the moment of the first conversation with a potential buyer until the moment the funds are credited to the current account.

Effective sales are quick sales, including. Selling for longer than it takes is an unaffordable luxury that can hurt a business. After all, every day that delays the moment of signing the contract and receiving payment is a loss. Shortening the transaction cycle is one of the key challenges for business leaders in companies.

Basic steps of the deal life cycle in merger and acquisition activity

The deal life cycle must be worked out and verified since it is a well-functioning sales technique, the stages of which are used in one case or another, that helps to save energy, money, and time. Let’s consider each of the stages separately.

The definitions of a sales cycle may vary slightly from company to company, but there are generally six basic steps. Let`s consider this process on the example of a merger and acquisition deal:

  • Search for potential buyers. At this stage, potential customers are identified who fit into the image of the buyer and may be interested in your product or service.
  • Initiating contact. After you have received a contact of a potential client – contact him as soon as possible. Chat with them on social media, email, and phone. First impressions play a huge role, so automate your email and social media activities to respond to requests promptly.
  • One of the most important stages of the transaction cycle. At this stage, you ask questions about the client’s business, their needs, and assess the ability of your product or service to meet those needs. After the qualification has been completed, send additional information about your product, such as a presentation, for the client to share with the team.
  • Product presentation. This stage requires the most preparation.

CRM: how to accelerate deal life cycle?

You can use CRM software to set up all the necessary types of reports for yourself to analyze the length of the trade from different angles. A CRM system for sales is a tool that allows you to structure data, process a large flow of information, analyze and compose tasks. It helps to improve employee management processes, controls the activities of the company, simplifies the work with documents and accounting.

The creation of a sales pipeline allows you to effectively interact with the client. It is easy to bring it from an incoming lead to a regular customer, controlling every stage of the interaction. If at some stage a person refuses to purchase, a return system is developed. The manager can track which of the stages is less effective and make adjustments on time.

Shortening the sales cycle is another pipeline challenge. She works for both retail and wholesalers. It is much easier for a manager to complete a deal using the capabilities of CRM for the sales department. The cycle is shortened by precise structure, automated responses, and a step-by-step plan for customer interaction. The organization of templates allows you to work with a large number of threads at once.