Sales and Its Impact on Customer Retention and Growth
Sales are activities concerned with the total number of products or items sold in a particular targeted time frame. The sale of a product to a customer is also generally considered to be a sale. The term ‘sale’ has several meanings and can be used to refer to different types of events, such as a payment in kind or a product being offered at an attractive price. The sales concept can also be used to explain certain concepts in business, including pricing, promotion, and market research. In fact, it can even be used as a verb: to sell. The basic function of sales is to increase the value of the goods bought by the customers, which then increases the income of the sellers or company.
For most companies, sales are conducted in two phases, the primary sales phase, during which the company makes an investment, and the secondary sales phase, after the investment has been recurred. Sales in the primary phase can be considered as an expansion of the company’s activities. During this stage, the company needs to increase its clientele through advertising, public relations, and promotional activities. These activities should attract potential customers and increase the company’s sales. After the investment has been recurred, sales professionals will need to continue to encourage potential customers to purchase the products being offered.
One of the main elements of the sales process is prospecting. Prospecting involves asking questions designed to get valuable information about the products, processes, and/or services offered by the business. Asking questions in this manner encourages the potential customer to learn more about the company, increasing the likelihood that they will buy the products being offered. This process is typically done by sales professionals called sales leads, who talk to prospects on a one-on-one basis and attempt to determine what type of customer they have the most chance of buying from. A key strategy is to establish a relationship with the prospect so that when they purchase a product from the company, it will have the least amount of hassle or complication.
Another strategy used during selling is warm calls. Warm calls are telephone sales techniques that use personalized selling techniques to generate interest in potential customers. When using warm calling techniques, sales professionals will often identify themselves by name, develop a personal connection with potential clients, and ask personal questions aimed at gaining information about the potential client. The goal of warm calls is to create a positive feeling between the potential client and the professional sales professional. By offering information about the products and/or services offered, the professional will provide the potential customer with a solution to a problem.
Social media is another area of focus for many sales professionals today. Social media, which includes Facebook, Twitter, YouTube, and LinkedIn, has changed how sales are conducted. The increased number of sales leads generated from social media has resulted in increased sales activity. This is because with each interaction, whether it is through sales pitch sales message, or warm call, prospects are given a link that will take them to the sales page or sales representative’s website. While a number of salespeople are using social media effectively to generate sales, others are not, and in an effort to not lose out on sales opportunities they are not taking advantage of social media.
The sales process is the key to sales success, however with the changing marketplace, it is imperative for sales professionals to remain versatile in their approach. There is a tendency for people in sales to become “set in their ways,” or get in their own way. Because of this, many sales professionals have developed “one-size-fits-all” mentality, believing that they know what works and that their specific business is the only one that can meet a specific client’s needs. Sales professionals must remember that they are service seekers and that what may work for other buyers may not be a good fit for them. In order to increase the likelihood of success and customer retention, sales professionals must explore new strategies and find new means of engaging the buyer to increase sales meaning.