I wrote an article for Social Enterprise magazine in the UK encouraging them to adopt what I called “Sales Methodologies” – basically a sales process, along with the teaching of sales skills. The article should give readers an understanding of how the sales process fits into the sales person’s working life.

I never posted it on my SalesItch.com blog (which is more for sales people rather than sales managers) but this seems like an appropriate place to post the key points from it.

Sales Methodologies – An Introduction

A sales methodology is a set of clearly defined processes and tools designed to help the individual or team emulate the best practice of others.

A good sales methodology is built on research and observations of the actions of top sales people. It should answer three important questions :

What should I do now?
A sales methodology provides a clear sales process through which all your deals or “opportunities” will pass, ensuring appropriately rigorous attention is given to each opportunity. The process is divided into stages running from discovering a new “lead” to the eventual signing of contracts. Most importantly, at each stage the methodology should provide tools to help you analyse and understand this particular opportunity and to develop and execute a plan of action.

For example, after an initially exciting first conversation with a prospective customer, a business owner uses a checklist to assess just how valuable and likely an opportunity it potentially is. Answers to the checklist reveal a number of weaknesses in the opportunity. Consulting her methodology she identifies the appropriate next steps, and is provided with scripts, tools and techniques to support her as she continues selling.

Why do it this way?
A strong sales methodology provides business owners with an understanding of why, and under what circumstances, people buy. No methodology can provide instructions on what to do in every situation, so managers who are equipped with an understanding of the fundamentals of selling are better able to improvise in situations where help is not immediately at hand.

How much business are we going to “close”?
Of particular interest to most business owners is probability rating. This is the practice of giving a percentage rating to the opportunity, representing the likelihood of that opportunity concluding in a sale. The percentage is related to the stage that the opportunity has reached in the sales process. By multiplying the financial value of the opportunity with the percentage rating a value can be attributed to that particular opportunity at that moment in time. By aggregating this number for all the opportunities currently in process, a manager can predict how much revenue will result from his or her activities.