What's your B2B company's sales velocity? Unbeknownst to many sales reps, sales velocity is one of the most important metrics in the B2B industry. It goes beyond total sales to provide a deeper understanding of how much revenue your B2B company generates. Sales velocity takes into account lead quantity, average deal size, conversion rate and conversion time. By using this formula, you'll have a crystal-clear view of your B2B company's sales process and whether or not it needs improvement. Even with a low sales velocity, however, there are several tactics that you can deploy to increase it.
#1) Combine In-House With Outsourced Lead Generation
Combining in-house with outsourced lead generation will result in a higher sales velocity. As previously mentioned, lead quantity is one of the four factors from which sales velocity is calculated. Rather than generating all of your B2B company's leads in house, though, you should consider outsourcing them as well. Outsourcing involves a partnership with a lead supplier or lead generation specialist like SalesLeads. Through our research team, SalesLeads generated actionable sales leads through Project Reports that define the project and those working on the project. That means, they are ready for you to call and become engaged with the contacts associated with the sales lead.
By combining in-house with outsourced lead generation, you'll acquire more leads while subsequently achieving a higher sales velocity.
#2) Prune Invalid or Bad Leads
You should consider pruning invalid or bad sales leads from your B2B company's list of opportunities. Also known as lead sanitization, it can increase your B2B company's sales velocity. Invalid and bad leads offer little or no value. You can always contact a prospective buyer on your B2B company's list, but if his or her data is invalid or otherwise bad, chances are the prospective buyer won't make a purchase. In turn, your B2B company's sales velocity decrease. To avoid this headache, you must prune invalid or bad sales leads.
Examples of invalid or bad leads include the following:
#3) Recommend Add-On Products or Services
When discussing deals with buyers, try to recommend add-on products or services. There are add-ons for most types of B2B-related products and services. Whether you're selling commercial construction equipment, machines or tools, there are probably related products or services that you can recommend to buyers. If a buyer agrees to purchase an add-on product or service, the size of his or her deal will increase. And since deal size is a factor for sales velocity, this will help your B2B company achieve a higher sales velocity.
#4) Prioritize High-Budget Buyers
Another way to increase your B2B company's sales velocity is to prioritize high-budget buyers. Not all B2B buyers are willing to spend the same amount of money on their respective orders. Different buyers have different budgets. The larger a buyer's budget, the more money he or she will likely spend on your B2B company's products or services. Prioritizing high-budget buyers such as this will promote a larger average average deal size, thus allowing for a higher sales velocity.
#5) Reward Long-Term Buyers
Don't underestimate the importance of rewarding your B2B company's long-term buyers. Research shows that the average conversion rate when selling to existing buyers is about 60%, compared to just 5% to 20% for new buyers. You can encourage long-term buyers to stay with your B2B company by rewarding them. Many B2B companies have a loyalty rewards program for this purpose. As the name suggests, a loyalty rewards program is an incentivization program that rewards buyers for their loyalty. Alternatively, you reward long-time buyers by sending them exclusive discounts and promotions.
#6) Shorten Your Sales Cycle
For a higher sales velocity, you must evaluate the length of your B2B company's sales cycle. According to Geckoboard, the average sales cycle in the B2B industry is a little over 100 days. In other words, it takes B2B companies 100 days on average to close a deal with any given prospective buyer. A long sales cycle, though, will restrict your B2B company's sales velocity. The longer it takes you to close a deal, the lower your B2B company's sales velocity will be. A short sales cycle, conversely, will result in more closed deals and a higher sales velocity.
#7) Embrace Sales Automation
Embracing sales automation will inevitably have a positive impact on your B2B company's sales velocity. Sales automation involves the use of software, programs, services or other tools to automate sales-related processes. Statistics show that over half of all B2B companies currently automate at least some of their sales-related processes. With sales automation, you'll be able to contact and communicate with prospective buyers more quickly, which should lead to more deals and a higher sales velocity.
#8) Use an ABM Approach
You can increase your B2B company's sales velocity by using an account-based marketing (ABM) approach. AMB is an integrated sales approach that's defined by the sharing of resourcing between your B2B company's sales department and its marketing department. In some B2B companies, these departments operate independently of each other. Using an ABM approach means that your B2B company's sales department and marketing department will work together to engage and convert prospective buyers more quickly.
#9) Respond in Real Time
If possible, try to respond to prospective buyers' inquiries in real time. Real-time responses are preferred by prospective buyers. Most prospective buyers want to get an immediate answer to their inquires. The longer they are forced to wait, the lower the chance of them making a purchase. Real-time responses offer a solution. Responding to a prospective buyer's inquiry in real time means he or she won't have to wait for an answer. Maybe the prospective buyer wants to know if your B2B company offers a specific product, or perhaps a prospective buyer wants to know how long the delivery will take. Regardless, you should try to respond to inquiries in real time to accelerate your B2B company's sales velocity.
#10) Remove the Pressure
Avoid pressuring prospective buyers into buying your B2B company's products or services. As a sales rep, there's a fine line you must walk when promoting your B2B company's products and services. You want to explain the benefits of your B2B company's products or services -- but without being pushy. If you are too pushy or otherwise aggressive with your sales pitch, prospective buyers will feel pressurized, in which case they probably won't agree to a deal. You'll close more deals and achieve a higher sales velocity by removing the pressure from your sales process.