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i think that each type has strengh point as example:
the short term cycle help to get our cash back in the short run to reinvest it as soon as possiple
the long term cycle help us to reorganize our working stategies ,think more about the future
depends on the product, the size of the company, the busniess cycle, and that targeted customer, also when the brofit should be in "income"
For me long sales cycle.
i believe longer sales cycles give us the opportunity to adjust our strategies,target a more precise customer base,build our relational sales strategies and strengh,adjust our tactical approaches,understand better market forces affecting sales,get more exposure,and due to market and politics fluctuation longer cycles gives us a chance to get beck in the game if we were forced out.
I guess it totally depends on the product value and need of the customer.
I used to work for company which used to sell products in software which are low value easy to afford and quick decision making so in couple of sales calls/meetings I used to seal the deal , now I deal with Hitech ,technology and precision products which is high value and low demand so sales cycle goes sometimes upto years to close a deal so continous follow ups, update on developments, regular meetings (apart from phone follow ups and emails ) are neccessary and during this time you build a good rapport with customer so that its very easy understanding , then there are other factors which makes it longer to close a deal like if its a government tender where price bid is opened after technical evaluation.
There is stiff competition so you have to beat the competition for successful order and evalaution takes its own sweet time so many factors add on for long cycle sales process.
Both are equally important as long cycles need more pateince and short ones need more volumes.
Time to sell is cost to the business entity. More the time, more the cost of selling.
Can any business entity afford prolonged long sales cycle for it's low revenue, low margin products?
Would it be realistic to have a small sales cycle for high value product (high revenue), high margins? Generally No buyers take quick decision where sales value is high.
Therefore the preference of choice based on time of sales cycle does not remain with any one except for opting the the sales type based on your interest and skill sets.
In todays turbulent markets where there is red blood stratetgy adopted by the companies its very difficult to have long sales cycles. As innovation is the key to success companies are manufacturing new products so as to be competitive and achive the goals.
To have economies of scale companies need long sale cycle as the ROI will be good and they can utilise their resources efficiently. As said above in todays time its very diificult to have long sales cycle as your competitor will kill you.Therefore short sales cycle is the rule of the game in current enviornment.
a mix of both is the best. Define which products go with a long life cycle and in line with gross profit mix, decisions can be made to balance sales and profit revenues.
I think there are interesting points to both types of sales.
- I prefer a longer sales cycle, some clients like to have a lot of information about the brands or product and have a lot of technical questions. Others are more interested in the personal benefits of a product, and with a longer cycle, I have the time to spend letting them know about the features that make this the right product for them.
- I like to get right to the point about my product's features and benefites to show the client what is the best for him. what i need is product knowledge about what i am selling, I really enjoy the quicker pace of a shorter sales cycle.
