Some points I found interesting are knowing why bad Prospect qualification leads to wastage of Pre-sales efforts and also the amount of time and money lost at making a wasted effort in selling to a prospect who was not qualified. This kind of behavior happens when the time spent of good qualifications is not to the mark and the priority in terms of time&effort is Cold Calling and getting the demo going.
Guus, gave us an example:
Cost of pre-sales
Pre-sales is expensive! The costs are:
–Commercial intake 0.5 day;
–RFI 1 – 2 days;
–Intake for workshop 1 day (2 persons 0.5 day)
–Preparing the workshop 1.5 – 3 days;
–The workshop 2 days (2 persons 1 day)
–The second workshop 1 day (2 persons 0.5 days)
–Writing the offer 1 day
–Negotiations on terms and conditions 1 – 2.5 days
–Writing the contract 1 – 2 days
In total 10 – 15 days is € 10.000 – € 15.000, Would you spend € 10.000 on a stranger?
What happens usually after a failed attempt and spending time is that the sales team is blamed for bad strategy and qualification. The loss shown above is a clear indicator that we need to have a very good idea of who our customers are and their propensity to buy what we are selling.
Most of the customers will face issues relating to time and it is really good if a timeline can be drawn so that it helps both the customer and ourselves. A snapshot of how this needs to look is pasted below.
More next time. Have a fabulous weekend.