The Master Sales Strategies for Business Funding Pros
When to use it?
Before presenting terms of the Approval.
What does it sound like?
Let me make sure I’ve gotten everything. You need (insert x amount) by (insert x date) to (insert x use of funds) so you can (insert x business outcome). Did I miss anything?
Ex.
Let me make sure I’ve gotten everything. You need $35,000 by 5/15 to get the material ordered for this job so you can turn this project over by 5/30. Did I miss anything?
How it works?
Of all the deals in your pipeline, what percentage do you actually close?
Sales close ratios let you know how effective you are as a sales rep. As a great way to measure performance, the higher the close ratio, the better you are at converting opportunities in the pipeline into revenue.
How exactly do we measure the Close Ratio for Funding Pros?
The Close Ratio is typically calculated by dividing the number of actual closed deals by the number of lead opportunities the sales rep had during a given time period.
A simplistic approach to take for Funding Pros is to divide the number of actual Funded deals by the number of leads that actually had Approvals out on them.
Ex.
Funding Pro had 10 deals with Approvals out on them last month.
He/she funded 4 of them.
Closing Ratio for last month was 40%.
Other variables can come into play from the Approval Stage to the Funded Stage in the Sales Process, but this is the simplest way to measure this important metric.
According to one of Hubspot’s 2020 research studies, analyzing over 8,900 companies sales teams across 28 industries, here are some notable close ratios by industry:
What are your 2021 closing ratio goals?
-FundingStrategist
What does it sound like?
“I had a bad experience with something similar.”
Where does it typically show up?
Prospecting Call: making contact with a lead for the first time.
What do we do with it?
Turn around. Key Objective: to turn around the objection, engage the lead further, and continue to guide the lead through the sales process to ultimately close and fund!
How do we turn it around?
What is B2B Sales?
B2B, short for Business to Business, refers to companies that sell their products/services mainly to other businesses, rather than consumers. There are mainly three types of B2B sales: supply sales, distribution sales, and service sales.
Supply Sales
In supply sales, a business provides another with products it routinely needs to operate. Think office supplies, equipment, workwear, etc. Companies usually provide these orders in bulk and require management authorization.
Distribution Sales
In distribution sales, a wholesaler sells products in large quantities to another company, which turns around and sells these products to consumers at a markup. Think a manufacturing company and a retailer, like a supermarket.
Service Sales
In this case, instead of a physical product, one business provides a service to another. Think software, legal counsel, accounting services, business finance advising, etc.
What is B2C Sales then?
B2C sales (Business to Consumer) is when a business sells its products directly to the individual consumer. It refers to any sales process that sells directly to cosumers, like GAP, Amazon, Zappos, Netflix, etc.
Where do B2B and B2C share similarities?
Both B2B and B2C sales require comprehensive knowledge and extensive experience about product, customers, and servicing them. In both sales models, the process is centered around the customer. The primary goal between sales reps in both B2B and B2C is transforming the prospect into a customer.
Also, in most cases, customers in both models are considerably well-versed in the products they intend to purchase. With the advent of the internet, customers typically make an effort to gather as much information about products so they can make sound decisions at the time of purchase.
Key Similarities
How do they differ?
MEDDICC was pioneered by Jack Napoli, when he was at technology company PTC, in order to better pipeline and close bigger deals. Other sales qualification frameworks got them from $0 to $100M no problem, but from $100M to $1 billion, there needed to be a better process created upfront.
In SAAS, MEDDICC has been a great framework for products that require transformation of behavior or incredibly high sales prices. For Funding Pros, MEDDICC can be helpful in working with bigger deals, where the decision maker is not necessarily the owner of the company (office manager, bookkeeper, CFO, etc.), and what you have to offer isn’t exactly the kind of bank financing products they’ve been used to.
This is where really understanding exactly how a prospect buys, why they would buy, and who’s championing you internally is crucial to moving these type of bigger deals forward.
MEDDIC stands for:
Metrics – What is the economic impact of the solution?
Economic Buyer – Who has profit and loss responsibility for this?
Decision Criteria – What are their technical, vendor and financial criteria?
Decision Process – Then what happens / Define validation and approval?
Identify Pain – What are their primary business objectives?
Champion – Who will sell on your behalf?
Competition – Who are we competing against and why?
Here are examples of MEDDICC questions that have routinely been used:
Metrics
How would you measure the success of your project?
Which metrics are you already using to achieve your objectives?
Economic Buyer
What does success look like for you?
Who, in addition to yourself, is involved in making this decision happen?
Decision Criteria
How do you typically arrive at these decisions?
How do you typically calculate the ROI for a project like this to justify the investment?
Decision Process
Which personnel are involved and what are the steps to reach the decision?
What does the approval process for a program like this typically look like?
Identify Pain
How quickly do you need to act on this decision?
What are implications of not getting this done?
Champion
How does this person have influence?
What is his/her personal interest?
Competition
Who are we competing against?
What about them is appealing?
How can you start tailoring this approach to some of the bigger deals in your pipeline?
-FundingStrategist