A complex sale is usually related to a longer buying journey. This means that both the business and the consumer need to invest more time, energy, and money to complete a deal.
Which is easier: convincing a consumer to buy a blouse for R$25 or making him take out car insurance with monthly installments of R$200 for 12 months?
There’s no catch: convincing a customer to spend R$25 on a blouse is easier.
Even if the consumer needs insurance (even more than the blouse), it is likely that he will invest more time to compare the options that are available, evaluating different criteria such as price, quality, and service, and considering the pros and cons of each option to that has access. How To Start A Successful Courier Business?
The customer’s effort is greater and, consequently, the effort that the company needs to make to sell will be proportional.
It is from this example that we begin to explain what complex sales are.
What are complex sales?
Complex sales are types of transactions in which a company’s commercial team needs to direct greater efforts to win over a consumer.
Among the main characteristics of a complex sale are:
- Long sales cycles,
- Highest average ticket,
- Multiple decision-makers involved,
- High Customer Acquisition Cost (CAC).
A simple sale has exactly the opposite characteristics. The products have a lower value, the acquisition cost is lower and the sales cycle is shorter.
In addition, they are usually associated with the purchase of products or services that are simple to perform.
Businesses like these need to generate a greater volume of sales to guarantee the revenue necessary for the maintenance of the company. Therefore, the investments made by the companies are closely linked to the stage of attracting customers to the sales channels.
When making a simple contract, the consumer usually arrives at the purchase channels with the intention of acquiring, attracted, for example, by an ad or a well-mounted window. What is Remarketing: See How to Increase Your Sales with Remarketing
As they are low-cost products, the buyer does not spend as much time on research and may even make an impulse purchase.
Even in cases where the sales cycle is longer, there is usually not the same investment by the company in the search for conversion.
Sales actions in these cases are closely related to marketing strategies such as email, SMS, social networks, ads, and remarketing.
It is an interaction that can be done, to a large extent, through marketing tools, which allow the segmentation of communication, but which work in an automated way.
Even when carried out in person, simple sales are associated with one-off contacts, which may or may not be maintained later.
When we compare this type of process to contracting more complex services, as in the case of car insurance, it is easier to understand the difference between a complex sale and a simple sale.
In complex sales, it is not enough to invest in great attraction and marketing actions, or in punctual service provided during a customer visit to your store. 8 Frequently Asked Questions About Starting a Business
There needs to be an involvement of the sales team and closer – and longer – work for the conversion of this consumer.
In addition to the price, it is important to note that the impact of a wrong hire is much smaller in a simple sale than in a complex sale.
That is, if the customer buys a blouse that is going to stay in the closet, the consequences are few, basically related to the R$25 that represented the cost of the product.
However, making a mistake when taking out car insurance can have many disastrous consequences for the customer.
In addition to being a high-cost service, wrong hiring can cause even more damage. Imagine if the customer is unable to get the assistance they need in the event of theft or involvement in a more serious accident that resulted in the total loss of the vehicle.
A poorly contracted insurance can mean a huge loss to the consumer.
All these factors combined make a sale either complex or simple.
It is important to highlight that it is a consumer behavior that directs what is a complex or simple sale.
It seems easy to understand these concepts, but these differences will guide the way companies’ sales processes should be built.
The importance of adapting the sales process to the business
Carrying out a complex sales process within a company that should have a simple operating model tends to lead to lost sales and increased unnecessary costs.
Furthermore, trying to adapt a complex sales cycle into a business model that is not aligned with it may seem absurd.
Imagine having a customer at your store who wants to buy a pair of jeans and you propose to have a 40-minute meeting. In it, your objective is to understand the needs and pains of the consumer’s day-to-day and what uses he intends to give the item. Only after this conversation, do you offer an ideal model of pants for that consumer. The best Apple headphones of 2022
Unfeasible, improbable, and completely out of context, isn’t it?
From this example, it is important to understand that there is no better or worse model.
What exists is the suitability of your company to the type of product or service you sell and the way in which it should be marketed.
The example of a complex sale being carried out within a company that must execute a simple business process is absurd, do you agree?
However, it is still very common to see companies with complex sales adopt simple sales processes that do not align with the behavior of the customer they serve.
If a customer reaches the base of an insurance company through general content on the subject and is immediately approached by a salesperson to hire the service, there is a misalignment between the business model and the sales process is applied.
By doing so, it is likely that the sale will not happen or that customers who were not yet ready to buy will be converted, increasing the churn rate (turnover) and reducing the ability to retain customers.
It is worth considering that within a recurring sales company, the customer’s lifespan is one of the main indicators to be considered to measure the success of an operation.
Low retention rates cause the business to be incapable of scalable growth, which is always gaining and losing customers, without being able to retain them.
However, this is far from the only problem with the wrong execution of a sales process.
When complex sales aren’t executed correctly, your salespeople waste a lot of time with users who aren’t ready to buy and let qualified sales opportunities go unnoticed.
This time could have been better spent if reps were interacting with qualified prospects, who were already in more advanced stages of the buying journey and decision process.
That’s why a company that wants to achieve high sales performance must consider the multiple stages of a sales process and its different types of funnels.
How to make complex sales?
To manage complex sales you will need to deal with creating different processes, managing and following the different stages of the customer journey, from before to after conversion. For this, it is possible to develop a sales machine structure, as shown in the image below. Did you like the name? It really is inspiring, but it will take a lot of effort and organization.
However, the result will be highly commercial performance in companies that deal with complex, recurring sales with a high average ticket. So if you’re up for it, keep reading and understand how to apply. To create a complex vending machine, you will need to consider two main scenarios: acquisition and expansion.
In the acquisition stage, your company is looking to convert the customer and this will include actions of:
After-sales, your company expands its operations with already converted customers through:
- Contract management.
For each of these steps there is a specific funnel that will organize:
- The processes that need to be carried out, step by step,
- The playbook of each phase, which will be used to guide the company’s professionals on what to do during the relationship with the lead, prospect, or customer,
- The metrics that need to be tracked so that there is the possibility of continuous improvement in the business process, and more.
The goal is for consumers to advance, step by step, funnel by the funnel, to conversion. Afterward, the focus is to build customer loyalty and expand their participation within the company.
To truly build your sales machine, in all these stages there is one element in common: the need for constant monitoring of indicators and data.
They will allow the identification of bottlenecks and barriers that are hindering the passage of a lead from one stage to the next stage of the funnel.
By identifying these obstacles, the company has the ability to act quickly to solve the aspects that are preventing the natural flow between the stages.
This dynamic is vital to achieving high sales performance, ensuring that the company will quickly solve the problems that are preventing it from growing.
All stages and complex sales funnels
But, after all, what to do within each of the steps represented above? What are the goals that your company must meet within each funnel? Below, we will present a summary of each phase so that you can have an overview of how effectively managing complex sales works. It is important, however, that you access the links indicated in each step, to learn more about the funnel that your company needs to build. It is also essential that you have a sales platform to make all this management possible. Without technology, you are unlikely to reach high performance.
It is the funnel that will capture leads for your contact base and carry out the work of educating and nurturing them, in order to prepare them for the commercial sector. It usually deals with users at different stages of the buying journey. Your sales team should not worry about this funnel, which is the responsibility of the marketing sector.
The leads that complete the marketing funnel and the contacts generated through outbound sales actions reach the pre-sales funnel to be qualified. This sector is responsible for verifying that the lead has a fit with the business and the ability to buy. Again, your salespeople aren’t involved, simply because you don’t want them to waste time with prospects who aren’t ready to buy yet. Leave that to the SDRs professionals and prepare your sales team for efficient performance in the next funnel.
Now your sales team comes into play to convert the qualified leads that arrive from the previous funnel. Within the sales funnel there are several stages that form the pipeline and will help you identify which prospects to prioritize while ensuring support for everyone, advancing them through the stages until conversion.
CS – Onboarding funnel
After joining your customer base, contacts should continue to receive support from your company. Now it’s time for customer service or customer success to take over the funnel. In onboarding, the goal is to help your customers implement the contracted solutions, ensuring that they have a good experience with the solution and the brand.
CS – Ongoing funnel
Loyal and satisfied customers offer good opportunities for expansion through upgrade strategies, for example. For this, however, your company must follow a step-by-step process in order to offer the best possible experience and still make the most of the growth possibilities.
CS – Contracts funnel
In this phase, you will make strategic use of contracts to increase the company’s gains with customers at any stage of the complex sales process, taking advantage of strategies such as upsell and cross-sell.
It works as a wild card, being an important ally in the quest to create a sales machine.