7 Terms Everyone in the Sales Industry Should Know
7 Terms Everyone in the Sales Industry Should Know
The world of sales, just like everything else, is continually evolving. The journey through trade by barter to reliance on SEOs and social media packages in modern sales of today describes the world of difference sales has made over the past few centuries.
It is because of all these changes that it is interesting to know that change doesn’t affect some basic parts of the sales world. Some techniques are too brilliant to need modification; some decisions equally require no variation. The same can be said about a few doctrines and terms that are essentially the unchanging skeleton of modern sales conversations and are somewhat necessary for prospecting sales professionals. Seven of these terms are listed below:
These are different forms of data that describes the buyer of a business product or service. These are usually obtained by various direct marketing strategies as well as some indirect marketing strategies like the use of the internet to send information regarding the business to random recipients.
A sales qualified lead on the other hand, is the term used to describe a buyer that has picked up interest enough to consciously seek for knowledge regarding the business product or service. In a sales job, the sales representative usually scores the leads as they come in by calling or emailing the lead to confirm interest in buying the product or service offered.
Sales prospecting includes the procedure involved in locating new customers or clienteles. Prospecting makes up a large part of the customer acquisition. Sales reps (also called ‘prospectors’) are actively involved in in the hunt for potential customers. Many organizations also hire a sales manager to manage the prospecting process. Once you get an inside sales team together, they can use these popular sales industry strategies to get started:
For most sales organizations, here are a couple of prospecting strategies are usually employed across of sales structures, they are not limited to:
Cold calling: making spontaneous phone calls to potential leads to interest him or her in hope of increasing sales.
Cold emailing: this strategy is only different from cold calling in the media used in disseminating the information or invitation to treat. In cold emailing, clever titles are fashioned to grab the recipients’ attention towards buying the products.
Social selling: this method takes advantage of the dependence of the new generation on the available forms of social media. It could involve directly establishing correspondence friends on Facebook or followers on Twitter related to your product.
3. Customer Acquisition Cost
This is the sum of all expenses used in both attracting new customers, obtaining leads and closing sales. In other words, it is the sum of both marketing and sales costs. Sometimes the sales process can be long and drawn out. Sales people and business development reps spend payroll dollars waiting around for prospects to call back or update them. It’s really important to qualify the leads as soon as they come in, so you can decrease your customer acquisition costs.
The Customer Acquisition Cost (CAC) is calculated by adding all marketing costs, salaries and wages, commissions, overhead costs and bonuses, and then dividing the resultant value by the total number of customers you get in the time duration. Sending all of your sales reps, whether inside sales or outside sales, through a complete sales training will help reduce long-term customer acquisition costs.
Easier to say than to do, Up-selling refers to success in convincing your lead from purchasing a less expensive product to more expensive sales. It is achieved usually by reducing the increasing the scale of value with increase in price a little exponentially. Companies that hire sales reps need to teach them how and why to up-sell additional products.
Return on investment evaluates the worth of all the investments in sales calls and decides if they are worth sacrificing. The investments weighed not only includes the money, time or labor put into the call, but also efforts not relatable directly with sales such as social media marketing etc. such will be evaluated against non-monetary gains such as consumer insights or public awareness.
This is essentially the bonus a prospector receives for every successful sale. Usually, this bonus is deducted as a percentage from the successful sale. Some companies hire sales reps strictly on commission only. The types of people in these positions are usually top tier sales talent.
One famous sales concept is that customers buy when they want to buy, not when you want to sell. Hence the importance of calculated customer relationship management(CRM). It involves strategies and processes involved in managing and analyzing customer interactions to increase sales by adjusting sales calls to fit all customers.
How important is it to you, to resolve your sales problem?