The challenges of managing a complex sales process
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The document discusses the challenges of managing complex sales, highlighting issues like long sales cycles, low conversion rates, and the need for better collaboration among stakeholders. It proposes solutions such as improving sales processes, centralizing inventory, and using just-in-time procurement to enhance efficiency. Additionally, it emphasizes the importance of adapting technology to support user adoption and operational decision-making in sales management.
The challenges of managing a complex sales process
- 1. Complex Sales The challenges of managing complex sales Ashutosh Bijoor, March 04, 2008
- 2. Typical Complex Sales Process
- 3. The Complex Sales Pipeline Milestones Opportunities Funnel 6 3 8 7 2 1 Responsible Time 0 days 15 days 35 days 55 days 70 days M1 Lead Captured M2 Requirements Understood M3 Solution Proposed M4 Negotiation M5 Order Confirmed 6 3 4 5 8 7 2 1 M6 Order Lost 6 3 4 5 8 7 2 1 6 3 4 5 8 7 2 1 6 3 4 5 7 2 4 5 Sales Sales Sales Sales Sales
- 4. Stake Holders Top Management / Principals Sales Management Sales Executives Customer Support & Fulfillment Channel Partners / Distributors Customers
- 5. Top Management / Principals Long sales cycles Low conversion ratio Scarcity of skills in sales team Commoditized products Un-predictable demand leading to high inventory cost and long lead times Speed up sales process Improve conversion ratio Better utilize available skills Enhance product portfolio and cross-selling Forecast demand centrally, based on direct / channel sales pipeline Centralize inventory and just-in-time distribution Challenges Needs
- 6. Direct Sales / Sales Management Large number of prospects High cost of sales Low revenue per customer Ineffective channel sales team Improve collaboration with channel partners to increase reach and reduce cost of sales Track movement of opportunities through pipeline to identify bottlenecks Provide on-time sales support to channels Challenges Needs
- 7. Channel Partners / Distributors Not enough opportunities Unpredictable demand Long lead times for procurement from principal Work with principals to generate demand and qualify leads Share sales pipeline data with principals, allowing more accurate demand forecasts Just-in-time procurement facilitated by accurately forecasted centralized inventory Challenges Needs
- 8. Support and Fulfillment Incomplete, inconsistent or un-viable order specifications High discounting Inappropriate fulfillment and credit terms Delayed collections Monitor sales offers for technical and commercial viability Take away responsibility of creating and configuring offers Provide online customer outstanding and credit viability information to sales Challenges Needs
- 9. Customers / Business Partners Sales process of suppliers not matching buying process Unresponsive sales process Unavailability of requisite items in stock Long delivery times Engage with suppliers early in buying cycle Prioritize suppliers based on responsiveness Assign higher value to suppliers capable of on-time deliveries Provide online feedback of required delivery schedules Challenges Needs
- 10. Current Solution Options Spreadsheets Simple, easy to use mechanism of collecting sales information Ready-made Sales Automation System Comprehensive features starting from contact management, opportunity management and CRM
- 11. Implementation Challenges Lack of user adoption Sales executives and channel partners are not amenable to reporting sales data Most implementations fail due to lack of adoption No direct gains in sales performance System use not directly translated into enhanced sales performance Users tend to view these systems as an obstacle to work Inappropriate metrics Sales metrics analyse past performance and statistical forecasts Lack of operational metrics that assist day-to-day decisions
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