Marketing Agency Sales Process: How to Boost Revenue

Marketing Agency Sales Process

Congrats. You’re ready to start selling!

Marketing goals and objectives have been thoroughly explained and delegated. Your sales team and their reps are ready to get cracking! You put your feet up and let them do their magic.

And then a month passes.

You check in with your team, hoping for some stellar, brag-worthy conversion reports. But all you get are some suggestions for a few website changes and a proposal to change the company’s logo!

Wtf.

Cue panic attack. This CANNOT be happening.

Where are my brag-worth conversion reports, damnit!

After quelling your panic and reining in your frustration, it hits you:

Did I walk them through the sales process steps? Are they aware of the entire sales process?

Whoops. Well, this is embarrassing.

When reps don’t know the sales process steps, a conversion rate angel loses its wings. And this lack of knowledge is a common sales process mistake that your sales rep may be making.

So, if you’re expecting sales growth but are overwhelmed with choosing the right ways to do it, we’re here to help.

ScaleTime offers results-driven development for your digital marketing agency, allowing you to optimize your systems and maximize your revenues.

Sound fun? It sure is, amigo. Let’s get started!

Marketing Agency Sales Process

Meet a Customer’s Needs With Digital Marketing

Digital marketing is now every business’s go-to for the latest trends, news, and updates for optimizing the sales process and obtaining robust conversion rates.

Meeting your customers’ needs by accessing the best digital marketing techniques anywhere, anytime, with anyone is an essential step to turbo-charging your business growth.

With the right digital marketing techniques and strategies, your brand will obtain increased visibility online, and ensure that more people (and paying customers) see you!

In addition, mobile devices, smartphones, apps, and other channels help connect you to potential clients and your target audience.

Result? More sales, bruv.

How do you know who’s a member of your target audience?

Marketing Agency Sales Process

Your target audience is the individuals or entities most likely to become your customers. These are the people who fit the profile for the type of person who would most like your brand and purchase your offerings.

All sales managers should know how to identify the brand’s target audience and put all their marketing efforts into making those particular individuals notice and purchase the deliverables you are offering.

Inbound marketing, social media marketing, and other digital platforms make your agency more public and accessible and are used to attract and engage your audience.

At first, your target audience might be on the small side. But once you determine who you’re selling to, you can find additional digital marketing avenues for expanding your reach and tapping into more audiences who will convert into profitable customers.

Mapping Out Your Sales Process

The road to customer success is not a smooth-sailing one. There will be bumps and many obstacles along the way. But with the help of a standardized sales process, you can get your sales team going and your revenue increasing.

So how will your agency go from here to there?

Sales process flowchart guide

We’ve come up with this Sales Process Flowchart Guide, where we discuss the various steps of a sales process and tips in building a sales strategy with a handy-dandy sales flowchart!

Sales reps and project managers, rejoice for your life is about to get easier.

All right, here’s an example of an actual flowchart:

Marketing Agency Sales Process

As you can see, this flowchart is broken up into small chunks of tasks that comprise all the necessary sales process steps.

The sections are also categorized into various shapes and colors to differentiate processes, subprocesses, and decisions. Arrows point out the direction of the next stage, while documentation is often indicated to put into writing the activities performed in a specific step.

Overall, the sales process flowchart is composed of 7 steps:

  1. Sourcing leads
  2. Contacting new leads
  3. Determining the sales cycle
  4. Creating and preparing sales collateral
  5. Taking note of questions and arguments
  6. Closing deals
  7. Caring for current clients

Now that you can see in a visual representation what the sales process looks like, the next step is to create a sales process that works for your business.

How to Create an Agency Sales Process and Get Results in 7 Steps

Marketing Agency Sales Process

Step 1: Source Your Leads

Leads must have specific demographic attributes your target customers most likely to find your products or services of interest.

So, to get to your leads, you need to get the target market right.

All right, but how do you figure out those specific demographic attributes?

Get your sales team to check on prospecting and qualifying the target audience and create marketing projects to generate their demographic information.

Then, place them in a secure, organized database like a Customer Relationship Management or CRM, and track your leads’ engagement, interactions, and updates on contact numbers and demographic location.

A CRM can also monitor customer relationships and evaluate whether they are quality leads.

Other than this, you also need to make sure your product or service offered has undergone a product-market fit. Or at the very least, the presence of strong demand in the market today.

Another factor is the price tolerance of the offered product or service. This is the amount buyers are still willing to pay for your offering, instead of selecting another competitor’s product or service.

Step 2: Contact and Qualify New Leads

Understanding how to qualify new leads is critical for knowing whether or not your agency has a quality group of leads or if you need to reevaluate your existing lead generation strategy.

Here are a few factors to consider when sorting the quality leads wheat from the chaff.

Stakeholders

Stakeholders are people or entities with a vested interest in your company’s success. They understand they are affected if the company fails, so they do everything to keep it thriving.

There are influential stakeholders, investors, internal stakeholders like employees, and external stakeholders like suppliers and trade associations. Your company stakeholders can all create a change in the agency’s overall marketing strategy and educate and empower people with the strategy’s effectiveness.

Authority

Lead generation is straightforward when individuals see you as an authority or if they know you are knowledgeable, especially when it comes to addressing their needs.

Also, holding an authoritative position also gives you the power to sway purchasing decisions without being seen as an aggressive salesperson or a retail dictator.

On the other end of the spectrum, having leads that engage with your business because they find your brand authoritative will ultimately expedite the sales process. That is, IF your sales reps properly pitch those leads!

An authority figure for many businesses is the finance manager, budget consultant, or the business owner.

Needs

When your leads immediately need what you’re currently offering, then you’re in luck. A thirsty man in the desert won’t give you no side-eye when you offer him a glass of cold water for five grand.

Basically, if your leads have an immediate, urgent need for your products, they’re not going to think twice about buying.

But most likely, you’re not offering an essential, urgent item. So, the entire sales process is going to take a bit longer. In lieu of this, marketing managers and sales reps must ask leads certain questions to determine how quickly the individual is likely to buy and exactly where they are in the buyer’s journey.

Questions like:

  • What are your challenges right now?
  • Is it worth it to you to spend money to overcome those challenges?
  • How much money? What’s your budget?
  • How soon do you need to solve your problems?

Etcetera, etcetera.

Keep in mind though that leads, whether quality or not, can also refer your agency to someone they know who needs your services.

Also in the future, the need for your services may arise. So leads you’ve already engaged and conversed with are more likely to remember you and contact you for help.

The point is to open the dialogue with anyone who has raised their hand, and keep that dialogue open for the lead’s future needs.

Timeline

Leads are often bound by a timeline or a specific period that either hinders or allows them to turn from a lead into a profitable customer.

Whether the challenges they face can be solved right now or not, they face other problems whose answers your products or services cannot provide.

This may be more important to them, so they put purchasing from you on hold for the meantime.

It is also important to note that when contacting leads, you don’t want to just ask a few questions so you can tick off some arbitrary boxes.

The point of talking to leads is to actively listen and understand their needs, wants, goals, and challenges to create and offer suitable products and services.

This takes us to the next step:

Step 3: Determine the sales cycle

Having sourced and qualified your leads, determining how you will engage them is the next step in the sales process.

One of the sales process steps includes having specific touch points in the sales cycle. touch points are the type of encounters you have with prospective buyers.

A touch point in the sales cycle might not always take the form of directly talking to a lead. In some instances, a touch point might be an action your sales or marketing reps take to get your in front of quality leads.

  • In today’s digital, always on-screen world, a sales touchpoint can be something like:
  • A website query
  • An email subscription
  • Question on a transaction

Most touch points occur on handheld devices like a mobile phone connected to the internet. However, some leads still prefer the traditional route with face-to-face interactions or coffee dates. If possible, a good mix of both digital and traditional touch points is ideal.

Additionally, a touchpoint can also be sales calls like a warm or scheduled call. Or a discovery call with a lukewarm lead that lets you know more about a potential buyer after they’ve indicated they want to learn more about your brand.

Email follow-ups can also be touch points that can boost the approach stage of the sales process.

After a successful discovery call, assign leads to a contact or account manager to personally manage and check on their status and follow up with them confidently.

Step 4: Create sales collateral

The real work may start with sourcing leads. But the creative part of preparing a presentation for them is also a project.

A presentation of sales collateral includes introducing yourself, your brand, and unique offerings. This step is a make or break for you and an opportunity to say something about what you do and what customers love about your business.

Some common forms of sales collateral include:

  • Capabilities decks — These are visual presentations for investors. You flash visuals while you talk about your agency’s growth and where it’s heading.
  • Proposals— Proposals are documents which outline your proposed solution to a specific client.
  • Sales decks— These are presentations for prospective clients that need convincing to commit to a purchase.
  • Sales sheets — Sales sheets are flyers or a one-pager that discuss the customer’s challenges and the solutions your product or service offers.
  • Contracts— The written agreement between the buyer and the agency.

Sales collateral helps you convey the benefits and advantages potential clients will get when they start working with you. Collateral is a storytelling guide for your clients to help them grasp and deepen their understanding of your organization.

Step 5: Document Questions and Objections

One of the unavoidable steps in the sales process is facing obstacles and handling objections. You’re talking to a person with a brain, remember? They’re going to ask questions and have some concerns you’ll need to overcome if you want to make them a client.

So, marketing managers and sales reps must know how to deal with concerns the potential client may raise, pain points from investors, and questions from prospects. The challenge here is to act under pressure.

Easiest way to do that? Acknowledge the questions and objections and present specific solutions to objections, questions, and concerns.

Many managers and sales reps will just nod their heads during a presentation and forget what they are nodding for, but this should not be the case. Take time to jot down as many questions as possible and not just rely on memory on portions of the pitch or the agreement that need clarifying.

This way, the potential client knows you’re engaged and determined to win their YES(es) at the end of the day.

Step 6: Close the Deal! And track metrics 

After gracefully answering the prospects’ concerns, now’s your time to shine and close that deal.

First, negotiate with the revised conditions and terms and let them know you’re willing to agree.

Next, steer them in the direction of having a done deal.

Ask about their review and payment process and the timeline that goes along with it.

Next, confirm details like invoices, contract finalization, and endorsement with the sales operation team.

The last sales process step of onboarding and tracking clients is just around the corner for a project manager.

Why is it important to also track metrics after closing the deal?

Sales metrics monitor your agency’s progress. They allow you to see exactly who and what marketing techniques are working.

Accessing and analyzing this critical data allows you to reassessing the current sales process to see if it is still suitable for your business’s needs or needs updating.

Sales metrics also tell you about the customer and how advantageous they are to your agency’s bottom line. Obtain reports on relevant sales or marketing agency processes like the sales conversion rate, customer lifetime value, and customer retention rate.

Step 7: Continue Nurturing Customers

The sales process doesn’t end once your lead becomes a prospect and then a paying customer.

Customer success lies in your ability to retain existing clients and open an opportunity for cross-selling other related products or services. Or up selling the existing ones that they have previously purchased.

Customer success isn’t all about obtaining bigger and better profits. It’s also about offering something of value to foster a deeper relationship.

Keep in mind that customers want to be constantly taken care of and treated like kings and queens. So constant check-in with the client creates a great aftersales approach.

Days after the purchase, check in with clients to know if they’re content. Check in again a few weeks after purchase for issues or concerns.

Months after the purchase, check in with the client again to see if they’re still happy with their purchase and if they are, then ask for a referral. They’re more likely to give one if they’re satisfied!

Optimizing Your Marketing Agency Sales Process

Refine Your Sales Process Continuously

Now that you’ve created a suitable sales process for yourself, implement it with your marketing agency and test it. Again and again.

Give yourself one chance, and if you’re not happy with it, tweak it according to the reports from your marketing team. Measure the results again and fine-tune the sales process steps to improve the weaker parts that need improving.

Some questions to ask:

  • Is my outbound sales working for me?
  • Do my social channels target content creation for new clients?
  • Will expansion to one platform level up my content marketing and close more deals?
  • Is my marketing budget enough for current client work?

If you’re ready to max your revenue and optimize your sales process, ScaleTime is here for your agency.

Know what you’re selling, understand your goals and define your metrics, delegate sales and track your sales process progress with our Sales Toolkit.

Align Your Sales Process with the Buyer’s Journey

Pushing for sales and hard-selling is now a thing of the past. Likewise, sales tactics that aren’t based on the buyer’s needs are no longer as effective as they once were.

For success in today’s world, you’ve gotta align the sales process with the buyer’s journey.

A buyer’s journey is the path people take when making a purchase.

Even when if you’re looking at an impulse buy, the client still silently undergoes the process of becoming aware, considering, and deciding to purchase.

This journey challenges sales reps to better understand the buyer’s needs and know when to influence their thinking and decision-making at the right time with the tactics that will have the most impact.

Marketing Agency Sales Process

The buyer’s journey is composed of 3 stages:

1. Awareness stage — This is where the buyer acknowledges or recognizes they’ve got a problem.

SALES ACTION:

Help the client. This is the stage where you inform and educate clients but not in a pushy way. Instead, provide them with the resources that can help them.

2. Consideration stage — This is when the buyer thinks about and contemplates the options they have to solve the problem.

SALES ACTION:

Make clients understand how your products and services solve their problems. Studying how competitors affect buyers at this stage will also help gauge how you can successfully influence their perception.

3. Decision stage — This is the stage where the buyer decides and selects the answer to the problem

SALES ACTION:

Clarify any objections they might have to make your selling position unique. Assist buyers in selecting and choosing the right product and service for their needs.

Once the marketing team understands the buyer’s journey and behavior at certain places in it, it becomes much easier to incorporate the sales process, influence their decision, and select the right product or service for them.

Measure Results

To optimize the process, measure the results of the implemented steps.

For example:

  • Who are the prospects that moved to the next stage of the sales process?
  • What has made them move to the next step?
  • What can you do to improve these numbers?

Set benchmarks for conversions if you’re the founder, so they know what to hit when you bring on a sales team. Check on your competition’s performance and identify which areas you are good at and which areas to improve.

Always make the sales metrics visible to the sales team. This will create transparency and help motivate and inspire the sales team members in their performance, enhance their production, and design better sales strategies.

Sales Process vs. Sales Methodology

Marketing Agency Sales Process

As one of the final notes, remember not to confuse the sales process with sales methodology. These are concepts commonly interchanged but are separate yet related sales concepts.

The sales process is the steps and tasks needed to acquire new clients and close more deals. The sales process steps are the what of the sales team.

On the other hand, the sales methodology is the how or the framework that makes up sales processes and techniques. Sales methodology is the driving force behind recognizing a marketing agency’s need to expand through sales.

Also, it’s essential to consider the perfect methodology that works well with your sales team. This will significantly impact the sales process and attract and retain profitable clients.

Key Takeaway

Not all clients are quality clients, and not all marketing strategies will work in your favor.

Therefore, it is essential to consider carefully planning the sales process steps, using appropriate sales methodology, reviewing and assessing key performance indicators, and improving the entire marketing agency sales process to build strong relationships with your leads, prospects, existing and new customers.

Action steps:

  • Pinpoint your qualified lead demographics
  • Identify your target market and create marketing materials that resonate with your target audience
  • Determine your specific sales cycle
  • Map the buyer’s journey, and create sales collateral to close the deal
  • Track your metrics. Analyze, optimize, and repeat

Get quality sales with our Streamlined Sales Process for marketing agencies and watch your digital marketing agency grow and take on new heights!

Contact us today to learn more.

Marketing Agency Sales Process

How to Build a Marketing Sales Process Flowchart

Are your sales teams drifting?

Do your salespeople and your marketing department ask you hundreds of questions every day?

Do you feel like you need a little more organization?

You’ve come to the right place. 

You’ve probably heard terms like sales funnels and b2b sales process flowchart.

“Yes, Juliana, very nice names but…How do I create them?” Relax, don’t get overwhelmed.

I have some good news: although many think that a marketing and sales process flowchart is difficult or something only professional strategists do, it’s easier than you think. 

And in this article, I’m going to tell you some tips, tricks, and sales processes template examples that you can use to get it done fast (they will help you even if you don’t have much experience in project management).  

You are welcome 😉

What Is a Marketing and Sales Process Flowchart?

The first thing to do is to have a basic understanding of exactly what you are going to do when you create sales process flowcharts. 

Like any other business process, there are a set of steps that you will do every time you go through the sales cycle with a customer. These will apply regardless of what you are trying to sell them and how big the sale is. 

So if you want to have success and maximize revenue, I recommend that you take note when building your sales strategy:

  • Prospecting and qualifying – you don’t want to go further with unqualified leads! Quality matters, always.
  • Pre-approach – warm them up to the idea that you’ve got the answers to their questions
  • Approach – once you have early rapport, introduce yourself!
  • Assessing needs – what does your prospect need, and how can you deliver it?
  • Presentation – it’s time to unveil your master plan!
  • Dealing with objections – there will be some, so don’t panic!
  • Commitment – the moment your prospect decides to go with you
  • Follow up – because the sale isn’t closed until there’s money in the bank! 

Every single sale in every single industry will follow a similar process to this. A sales process flowchart just formalizes it, so everyone on your sales team knows exactly how to proceed. 

With these sales process steps, your project management team can track each project from before the sale even happens. This way, the sales rep and PM can work together in harmony.

Making a Flowchart

Of course, your sales flowchart will need to break all those steps down into smaller chunks, so that your sales and marketing team always know what to do next. 

Sales flowcharts use a system of shapes and interconnected arrows to indicate which action should be taken when a prospect takes a particular action. Each type of process should be a different shape, and ideally a different color, so they’re easy to differentiate. These include:

  • Start – the start of the whole process
  • Process – what you are going to do
  • Subprocess – when there is another step or steps to be taken to complete a process
  • Decision – when you or your client makes a decision
  • Document – when processes, decisions, and other important information needs to be formalized in writing

Your sales flowchart should visually represent how you will approach, nurture, convince and close a sale. They make it easy for any employee, new or old, to determine what they should do next. This makes it easy to move the sales process along and helps to save time and money. 

Having a marketing sales process flowchart will be for your team like when the castaway finally sees land and stops swimming adrift. Yes, that much.

How to Build Your Own Sales Process Flowchart

Ok, let’s get down to the important stuff – start the action!

While there are sales process flowchart templates out there, this is a very personal and company-specific process. A good sales process will be based specifically on the products and services you offer and take into account your internal business administration processes. 

So, for instance, when your sales team needs to generate a quote number or process a purchase order, there will be a step on your sales flowchart that corresponds to that task. 

A B2B sales process flowchart tells your team what they need to do, and when, but it also makes it easy to track, project manage and measure results. 

So, to create a sales flowchart that is specific to your company and the products and services you sell, you might do the following:

  • Determine when and how you would find and qualify leads
  • Create an offer that would encourage them to opt-in
  • Create an automated process that shares high-value information
  • Identify a point at which you switch from automation to a human salesperson – usually when a prospect requests more information
  • Create steps to find out what a prospect’s pain points are, and how your offerings address them
  • Develop a quote and follow up the process
  • Identify when / if you will abandon the sales process – because sometimes, a customer just won’t take the next step
  • Create a new process to capture and manage orders
  • Integrate with payment and accounting systems
  • Develop a follow-up and after-sales process

Each step of the individual sales and marketing flowchart will be different, but it will always start at the very beginning of the new client relationship and cover all the steps until the sale is done, the product delivered, and the check-in the bank. 

There are many applications, both paid and free, that allow you to build your sales flowcharts in a very simple way. Make friends with the tools, they will undoubtedly save you from this one.

Formalized Processes Make Efficient Teams

You know I’m a big fan of efficiency (and I think all business should be). 

The biggest reason you should have a standardized sales process is so that you can quickly and easily replicate steps that have succeeded in the past. 

As you scale your sales department, a strong sales process lets everyone know exactly what they need to do to qualify more leads, nurture them, negotiate a favorable contract, and then close the sale. 

But this doesn’t start and end quickly. You might have to adjust your sales process when you first start developing it, as you learn more about what works and what does not. 

A formal process also makes it easy to onboard new sales reps and provide them with tools that you know work in your industry and for your company. 

Your sales and marketing teams will know how to go from one step to the next. Both departments will work in line and the day-to-day problems will disappear, and so will your headaches.

I always say that time is money, and without a doubt, a Marketing Sales Process Flowchart will save you time and maximize your revenue.

So, if you haven’t already started working on this, start applying some project management principles to sales, and discover how much it can improve your sales pipeline. 

Come on, it’s time to start kicking ass!

Top KPIs for Optimizing Your Sales Process

The best part of owning an agency? 

It’s all the stuff that happens outside the day to day of your agency – travel, watching your kids play sports, creating cool shit. 

It’s letting go and letting your business run like a lean, mean, well-oiled machine. Ahh, priceless! But priceless or not, we have to get a grip on our numbers — the sales process. 

If you don’t have one in place yet, grab our free Sales Process Toolkit. We’ll walk you through it step-by-step. 

To keep your agency running smoothly and scaling, you must keep track of all your processes, the people, and the performance. Today, we’re going to dive into the agency sales process with the KPIs you need to measure success. 

“But Juliana, don’t I just measure revenue when it comes to sales? My sales are great!”

Well, that’s good to hear, and it’s true — your sales process is measured in revenue. 

But that’s not all. 

Measuring revenue is one thing.

Measuring other top KPIs will help you optimize it, get straight A’s across your sales scorecards, and identify room for growth

And remember, you want to keep your agency running smoothly. These top sales KPIs will help you do just that. Let’s take a look at the metrics that’ll help you develop an excellent agency sales strategy. 

Why you need data to go from good to flat-out great: Sales accountability 

If you haven’t already, you need to start making decisions based on data, not feelings. The more we use data to make decisions, the more objective our choices will be. Ultimately, this will make our business more agile. 

The thing is, inaction costs money. When we don’t have the data we need, we won’t act. So, having data makes it easier for us to act and to make accurate decisions. 

Am I saying eff it to feelings? No. Sometimes it’s good to listen to our gut. 

But looking at the data instead of relying just on feelings will save us time and money in the long run while keeping sales accountable to raw, hard numbers. 

Profitability: The King KPI

All right, there are different types of profitability. But let’s keep it simple so we can get a grip on our actual sales numbers. What’s the simplest profitability KPI?

Sales minus costs. 

That’s where you get your bottom line or your profit margins. When you look at this super simple metric, it gives you the ability to identify and cut the fat. 

So, why is this important? It all goes back to sales accountability. When you’re able to see where things are dragging, you can cut that out and make your business more agile and profitable. 

Customer Acquisition Costs KPI (CAC)

Everyone and their uncle claims to be a marketer nowadays. No matter what, though, marketing is getting super competitive. Measuring how much it costs to get a new customer will help you keep these costs reasonable. 

Here’s how you measure it:

CAC = costs related to getting new customers divided by the number of customers.

And here’s an example:

Let’s say a SaaS company spends 20K on a marketing campaign and customer acquisition expenses. They get 3500 new customers from this campaign. 

So, 20,000 divided by 3,500 is 5.71. It costs the company $5.71 (CAC) to acquire each customer through this campaign. 

Average Sales Cycle Length KPI

“How long is this lead going to take to close? Oh crap. I don’t know if I can keep the lights on next month. Good thing I like Ramen. ”

Measuring the average sales cycle length will make your sales forecasts more predictable. Get a certain number of leads, and you’ll know what your numbers will look like down the line. 

This KPI can help reduce the whole feast or famine thing. If you measure this KPI and decide to reduce it, you can boost your revenue growth. 

Keep in mind that if you sell to small business owners, your sales cycle will be shorter than if you sell primarily to enterprises. Also, customized products and services will have a longer sales cycle than something pre-made. 

Where you get your leads is also going to impact this KPI. Outbound lead generation where there’s low purchase intent will equal a longer sales cycle. To make sure you get an accurate picture, segment the equation down to:

  • Lead source
  • Prospect size
  • Product sold

First step:

Add the (X#) of days from the first contact to customer conversion for all deals = Total (X#) of days for sales combined. 

Next step:

Total (X#) of days for all sales combined divided by (X#) of deals = (X#) of days to the average sales cycle. 

It’s essential to measure average sales cycle KPI before diving into the next — SQL, or Sales Qualified Leads, to win conversion rate. 

SQL to Win Conversion Rate 

Sales and marketing need to be aligned to keep the entire sales process running smoothly. 

Sales Qualified Leads (SQLs) represent those prospects that have expressed enough interest in your business to officially enter the sales process.

Measuring SQL to win helps your teams stay on the same page regarding the volume and lead quality that marketing passes off to the sales team for sales proposals. 

With this KPI, you’ll know conversion rates and gain the insight needed to pinpoint opportunities to improve your agency sales cycle. This KPI will improve sales accountability. 

How so?

It helps uncover efficiency deal closers and if there are any problems with the quality of sales opportunities. Conversion rates can indicate whether or not there’s something wrong with lead generation efforts. So, here’s how to measure it:

(X#) of deals won divided by (X#) of sales qualified leads equals the (X#) win conversion rate.

Measuring Sales Process KPIs: Key Takeaways and Action Steps

All right, it’s execution time. The first step, grab a copy of your P&Ls going back the last six months. 

“Uhhh, what are P&Ls? Don’t think I have those . . . “

Then that’s your first step. You need the data from your profits and losses (P&L’s) for the last six months to even begin measuring your sales KPIs. It won’t take too long, and you should be doing P&Ls once per month. 

Okay, got your P&Ls? Calculate your profitability and find your profit margin. 

Do it per client or per service if you’re a full-stack agency. This will help you identify the clients or services that are costing too much. 

“I’ve got some loss leaders, but I upsell!”

Well, okay then. Include upsells in your total revenue. 

The key takeaway? Be ruthlessly honest with yourself, especially when reviewing profitability per client. Remember, it’s basing decisions on data and not emotions that are going to make you scale. 

Use your sales process KPIs to get hyper-intentional about how you design your business, make decisions, and overall, run your agency. 

Now, go out there and kick some as$, Gladiator!

Download our Sales Process Checklist!

How to make sales hiring less confusing

“Any tips for making sure we don’t derail during this time? I 
already feel like we’re changing strategies by the second (internally and client-facing) and I want to make sure

1) messaging is consistent

2) the team doesn’t feel overwhelmed with this very quick change and need for action.


Does that make sense??” [sic] 
asks Kate, a project manager of my beloved client.

It does if:

Your facebook feed is filled with Corona memes to distract you from

Your news feed that is FUD-filled (fear, uncertainty, doubt – so you don’t have to urban dictionary) with echoes of the last recession

Your WhatsApp is blown up by frantic friends and family away

You’re not sure which clients are sticking around, even if you feel like you have them under legal lock and key 

And worse… you are in a confined space with those closest to you while trying not to kill each other. 🤬You wish you could SOS yourself out of a Vampirina tranz because kids are home all day

Oh and did I mention it’s happening to your employees and clients, too?

Now that I have made you feel super warm and fuzzy 😉 I promise there is hope! 

Download our Sales Process Checklist!

In times of crisis, people look for leadership. 

> If you are reading this, you are a leader. 

> Step into it. 

> Own it. 


 The best crisis management we can model is the Situation Room of the United States (setting aside your feelings about the current administration)

It’s an effective way of managing crisis because it swiftly and effectively deals with the volatility by managing:

·         Information: parsing and prioritizing data that’s incoming from various sources

·         Dissemination: to whom and how to share relevant and urgent communication

·         Action: deploying and implementing tactics despite a barrage of new information coming at you (i.e revenue and resource changes)

·         Support: making sure the nation (in your case – clients and team) feel supported throughout

Five simple things to implement your own “Situation Room”:


1.        The Situation Room – needs to take place in real life (preferably with social distancing in this case). Whether that is a Slack channel, Zoom huddle or your team sneaks into a football field and then stands 6 feet apart (jk), you need a time and place to gather the info with the Gladiators you appoint.


2.      Opening and closing debriefs – there is a phenomenal amount of info to digest between closing shop and opening … then it cycles throughout the day. This is crucial to pivot and/or course-correct quickly.


3.      Create a change board in your project manager – this is a project or board where new ideas that flood from you and the team get placed to be approved, denied or delayed based on resources and urgency. This will help keep track of all competing projects and ideas.


4.     Measure the capacity of both hours and emotional stress –  this is a prime time for people to be on edge and overwhelmed. Track hours for the good of everyone’s sanity. Support your people by checking in. Are their families healthy? Will they have wifi outages (SE ASIA)? Do they need to make appointments to go to supermarkets(certain South American countries)? Stay informed… Any new data will: Affect workflow. Affect productivity. Affect your business.


5.      Lastly, Lead.

 

          In your industry. 
          In your business. 
          In your home. 

As a kid, my stepdad would constantly ask me “Are you a leader or a follower?” That is ingrained in my head. Be the reliable, constant, future thinker your team and clients need you to be. 

If you need to silently scream into a pillow, reach out and I’ve got your back. 

Leadership is the manifestation of Expansion, Empathy, and Empowerment. 

Kick some ass and let me know if you have any questions. 

Legit, send me an email – I read them all (I’m unfortunately addicted and stuck at home), I promise to respond. 

Let’s grow together. 

Download our Sales Process Checklist!

Is your CRM System Leaving Money on the table?

“Any tips for making sure we don’t derail during this time? I
already feel like we’re changing strategies by the second (internally and client-facing) and I want to make sure

1) messaging is consistent

2) the team doesn’t feel overwhelmed with this very quick change and need for action.


Does that make sense??” [sic] 
asks Kate, a project manager of my beloved client.

It does if:

Your facebook feed is filled with Corona memes to distract you from

Your news feed that is FUD-filled (fear, uncertainty, doubt – so you don’t have to urban dictionary) with echoes of the last recession

Your WhatsApp is blown up by frantic friends and family away

You’re not sure which clients are sticking around, even if you feel like you have them under legal lock and key

And worse… you are in a confined space with those closest to you while trying not to kill each other. 🤬You wish you could SOS yourself out of a Vampirina tranz because kids are home all day

Oh and did I mention it’s happening to your employees and clients, too?

Now that I have made you feel super warm and fuzzy 😉 I promise there is hope!

Download our Sales Process Checklist!

In times of crisis, people look for leadership.

> If you are reading this, you are a leader.

> Step into it.

> Own it.


 The best crisis management we can model is the Situation Room of the United States (setting aside your feelings about the current administration) It’s an effective way of managing crisis because it swiftly and effectively deals with the volatility by managing:

· Information: parsing and prioritizing data that’s incoming from various sources

· Dissemination: to whom and how to share relevant and urgent communication

· Action: deploying and implementing tactics despite a barrage of new information coming at you (i.e revenue and resource changes)

· Support: making sure the nation (in your case – clients and team) feel supported throughout

 

Five simple things to implement your own “Situation Room”:

  1. The Situation Room – needs to take place in real life (preferably with social distancing in this case). Whether that is a Slack channel, Zoom huddle or your team sneaks into a football field and then stands 6 feet apart (jk), you need a time and place to gather the info with the Gladiators you appoint.
  2. Opening and closing debriefs – there is a phenomenal amount of info to digest between closing shop and opening … then it cycles throughout the day. This is crucial to pivot and/or course-correct quickly.
  3. Create a change board in your project manager – this is a project or board where new ideas that flood from you and the team get placed to be approved, denied or delayed based on resources and urgency. This will help keep track of all competing projects and ideas.
  4.  Measure the capacity of both hours and emotional stress – this is a prime time for people to be on edge and overwhelmed. Track hours for the good of everyone’s sanity. Support your people by checking in. Are their families healthy? Will they have Wi-Fi outages (SE ASIA)? Do they need to make appointments to go to supermarkets (certain South American countries)? Stay informed… Any new data will: Affect workflow.  Affect productivity. Affect your business.
  5. Lastly, Lead; In your industry. In your business. In your home. As a kid, my stepdad would constantly ask me “Are you a leader or a follower?” That is ingrained in my head. Be the reliable, constant, future thinker your team and clients need you to be.

If you need to silently scream into a pillow, reach out and I’ve got your back.

Leadership is the manifestation of Expansion, Empathy, and Empowerment.

Kick some ass and let me know if you have any questions.

Legit, send me an email – I read them all (I’m unfortunately addicted and stuck at home), I promise to respond.

Let’s grow together.

Download our Sales Process Checklist!

How to Price Your Services: 4 Service Pricing Strategies

how to price your services: Pricing strategies

Yes, it’s a tough one.

At some point, we’ve all asked ourselves, “How much should I charge for my services?”. 

Crying, despair, indecision. Well, I think I’m exaggerating.

But the reality is that in most cases, the answer is a big question mark.

It can’t be too high. 

It can’t be too low either.

Unfortunately, there is no magic pricing formula. It would be a lifesaver for many business owners.

The key? Finding the right balance as you determine pricing.

But it’s not that simple. And that’s why I wrote this beautiful and inspiring article in which I want to give you some tips on how to price your services.

I’ve got good news for you: there are several established service pricing strategies you can use to set your prices.

Another thing you have going for you? Services prices are never set in stone. You’re always in control and can make changes when you need to. 

Let’s get started.

Download our Sales Process Checklist!

Pricing a service is not the same as pricing a product

It may seem obvious. But there’s a reason I want to dwell on this for a few seconds.

Yes, service businesses provide services. Wow, I bet you didn’t even know that.

Here’s the thing: services are intangible. That’s what makes it difficult for small business owners to price a service.

There’s all this emotional clutter that comes with monetizing your services. 

It’s like you are putting a price on yourself and for service providers, you are. It’s your discipline, your years of study, and or practice. 

The amount of experience and crap you have to put up with to go out into the world and say, “This is how much MY TIME costs.”

In some cases, such as doctors or dentists, there are industry rate guidelines for pricing services, but often it’s about the actual cost and what the market can bear. 

Before You Start Working on Pricing

We’re going to get to the specific types of pricing you might use to price your services in a moment, but before we do, there are a few things you should consider. 

How Scarce Is the Service?

There are some services, like dog walking or house painting, which have a relatively low barrier to entry. Almost anyone can start these kinds of businesses with minimal investment, and there are no special qualifications or licenses required to offer them. 

On the other hand, a service that requires special training, equipment, and licensing, like plumbing or accounting, or one that requires a scarce skill, like web development, is much harder to start. 

When there is less competition in your field, your skills will probably be more in demand, and you will be able to price your services higher with value-based pricing. 

This might even apply if you are the only person offering a particular service in your area, either because you have some sort of exclusivity deal, or because you are the only company that does what you do in your town. This can add perceived value to your customers.

As a general rule of thumb, the more options customers have to shop around, the more dialed in your pricing needs to be, and the lower your desired profit margin will probably be. 

What Is Everyone Else Charging?

The next big question you need to answer is what everyone else is charging for similar services in your area. You don’t necessarily have to match their pricing if you are offering additional value, but this lets you gauge what the upper and lower limits in your area are. 

It’s important to note that price alone should never dictate your pricing. If everyone just starts undercutting each other, you’ll be in a race to the bottom before you know it, and that’s not good for anyone’s business. 

What Kind of Service Do You Provide?

The next thing you should think about is what kind of service you provide. Is it a daily requirement, or something that is an absolute necessity? Examples of this might be services like auto repairs or plumbing, which people require to be able to use their car or live in their house. 

Or are you offering a luxury service, that people purchase purely because they want it? Some examples could be high-end nail services, beauty treatments, or interior decorating. 

People who are buying luxury services might be willing to pay a little more for them because they know that they’re buying an indulgence. While people who are looking for a service that is a necessity might not have the money to spare, so price might be their primary consideration. 

Will You Offer Additional Incentives to Buy from You?

Finally, think about whether you will build any incentives to buy from you into your service. 

People might pay considerably more for a service if they have the option to pay it off over time. Even if the price itself is much higher, if the installments are more affordable, that’s a big attraction to potential customers. 

If you are selling frequently used services, you might find that offering a loyalty card or points program is a good incentive to buy from you. An example might be offering a customer their tenth dance lesson or fitness session free. This way, you can encourage repeat business, which might be worth the cost of the free offer. 

You might also be able to build referrals into your business model, by offering customers a discount if they encourage friends and family to sign up for your service. You would earn a little less per customer, but it’s a great way to build up your order book with word-of-mouth marketing. 

All of these extra considerations could affect how you price your services, but while you think of them, let’s get into the nuts and bolts of pricing services. 

What you have to take into account to set a fair price

pricing strategy

It’s nearly time to look at the four most common pricing strategies for services, but before we do, there are a few pricing basics you need to make sure you include in your considerations and calculations. 

Overhead Costs

Every business has what is known as overhead costs. These are costs that aren’t directly related to providing the product or service, but still need to be paid. They differ for every business, but they always need to be factored into your pricing. Overhead costs might include:

  • The cost to rent an office space
  • Your business license and permits
  • Utilities and telephone costs
  • The cost of office equipment and furniture
  • Stationery and office supplies
  • Marketing and advertising costs
  • The cost of software and online services you use

All of these costs have to be paid whether you make a sale or not, but you still have to recover them when you make a sale. So, it’s a good idea to have a clear understanding of what it costs to run your business before you ever make a sale. 

Cost Plus Pricing

Cost-plus pricing is the simplest way to price services. You calculate the direct costs of providing the service, add your fixed costs and overhead costs, any indirect costs, and the markup you want to charge on the service. 

So, if you were providing a painting service, you would calculate the materials and paint you need to use, add a precalculated portion of your overhead costs, plus direct labor costs, and then add your markup to the result. 

It’s important to note that fixed costs and overhead costs can get a little trickier if you have more than one crew or team working on projects. So, for instance, once you have calculated your fixed costs and overhead costs, including the salaries of administrative and non-field staff, you still need to divide that by the number of days in a year or the number of working hours. Then you need to further divide that by the number of crews you have worked. 

So, if you have four painting crews working for you, each one of them would cover a quarter of your fixed costs, plus direct labor, and material costs. 

This does make it a little more complicated to calculate costs using the cost-plus method, but it also means that your price to your customer can be a little lower, or you can make a little more profit when you have more people working for you. This is why growth is such a good thing for businesses! 

The 4 Major Pricing Strategies for service businesses

price and services

Finally, it’s time to take a closer look at which pricing model you could use to price your services. It’s worth noting at this point that you don’t always have to choose just one. 

Sometimes, companies offer vastly different types of services to different types of customers, or they might choose to price below a certain value using one method, and above that value with another. 

It’s your company, and it’s entirely up to you. The only hard and fast rule is that you need to make sure you’re making a profit, and price your services so that customers are willing to buy them. 

Adjust and tweak these as necessary, and make sure you review your pricing and profits regularly. You need to make sure that you’re always making enough to keep your business going, and money in the bank. 

#1 Hourly Rates

Pricing services based on hourly rates is a very simple way to work out pricing, and you can always be sure that you will be compensated for the time you spend working on a customer’s project. 

This type of pricing works best when there are no material costs to factor into the equation. 

Be warned, however, many customers will expect an estimate of how many hours the job will take, and while small fluctuations are expected, big differences might be a subject of contention. So, if there are any changes or any scope creep along the way, you will need to be very proactive about keeping your customer in the loop. 

#2 Retainers

Retainers are another great pricing strategy for a service business. They are easy for customers to manage, and they guarantee you a certain amount of revenue from every client every month

Lawyers and other professionals often use retainers to price their customers and include a maximum number of hours in their contract. Any additional time or work is priced at an hourly or per task rate. 

In some cases, when clients sign a contract for retainer-based services, they might require some exclusivity – which means you might not be able to work with their direct competitors. 

Since retainers mean a guaranteed minimum from each client every month, it becomes a lot easier to plan and manage overhead expenses. 

#3 Flat Fees or Lumpsum Pricing

Flat fee or lumpsum pricing is a price that is based on the entire job, at a single, one-time fee. 

So, for instance, you might quote a client to build an entire website, or to install their whole backyard fence for a single price. 

This type of pricing is a little easier to calculate since you just add everything together and then add your markup, but if there are changes or additions along the way, you might end up doing more than you bargained for. 

If you choose to offer a flat fee, be very specific about what is included, and what’s not. So, for instance, you might specify a website of a maximum of 5 pages or a fence of 200 feet, and that additional work will be quoted and charged separately. 

#4 Variable Pricing

Variable pricing could apply to any of the aforementioned types of pricing. 

Variable hourly pricing could be a discounted hourly rate when the quantity of work exceeds a few hours. Retainer clients might also get a discounted rate if they book above a certain amount of work per month, and lumpsum clients might pay less for bigger projects. 

This is usually at the business owner’s discretion, but some also have company policies that govern this. 

So, they might have one rate for any work under a predetermined number of hours or value, and then another rate for anything above. It’s best to be consistent though because it can be very hard to keep track of too many variables! 

Some companies also get around this problem by offering quarterly rebates. So, clients all pay the same rate upfront, but if they meet a predetermined target, they are sent a rebate check to refund a portion of their spending. This is a good strategy because it encourages customers to spend more money, so they can earn their rebate! 

No One Size Fits All Solution, but here are some of the tactics we use at ScaleTime

  1. Figure out the market you want to cater to ranging from accessible to affluent.
  2. See what your competitors are charging in that market. There will most likely not be too keen to give out pricing to you, but you can always have a friend or associate ask for pricing on competitive services.
  3. Insert yourself in the market and start putting your price point in the hands of potential clients. If there is no pushback, you are probably pricing too low. If there are no buyers, chances are your price is too high for your offering or market.
  4. If you are not comfortable saying your prices, your leads will know, they will smell blood and they will pounce.

Pick a comfortable price and stick to it. How do you price your services? Don’t follow a magic pricing formula that doesn’t exist. Set your prices the way that makes the most financial sense – No apologies!

You are the one that gets to go out into the world and say, “This is how much MY TIME costs.”

Download our Sales Process Checklist!