End of Quarter, run like hell?
As Sales teams - and their Management - gear up for end of quarter closing, Finance & Sales Operations may want to take a closer and deeper look at the long term benefits of this quarter end rush.
Drop price to 'get the deal in' enable Sales to reach target, but at what cost? Discounts eat margin when you most need it! Last minute deals are costing your company more money than you may think of and here's why:
1. Sales focus on the deals they can influence, not necessarily the deals that are ready to close. Bringing those deals takes away time, focus and energy from your Management, your Legal and your pre-Sales team;
2. Sales are leaving 80% of their sales funnel abandoned for a good 10 working days (include the first days of the next quarter!), wide open for your competitors to move further in;
3. Last minute deals often get closed at a 30-35% discount rate, and they're the biggest ones in your pipeline.
How to turn the tide:
1. Focus on your customer's buying process, not your sales process. Question every 'But this deal is at 80%!' as it is (only) in the eyes of the beholder...;
2. Train and coach Sales to develop an 'always on' customer centric attitude, bringing far more benefit than a discount ever will;
3. Go for weekly forecasts and ban all closing dates that read 31/3, 30/6, 30/9 and 31/12 from the sales funnel.
Increase margin, improve implementation capacity and bring value over discount.
If your Sales Team can use a hand to turn the tide, drop us a note on firstname.lastname@example.org