We document the steps in a sales process to see the amount of time it takes from the first time you make contact with a customer to making a sale. An example of this occurs when you do estimates or provide quotes. Track from beginning to end, how long it takes for the estimate to be prepared for the customer to review and accept and for the work to start. These steps could happen in an hour, day, week, month or year.
It is this important to understand how long and how complex, these steps are and determine if you have factored enough of your time to make a sale in the price.
Another reason we track this is to ensure that necessary forms are developed and a tracking system is in place to follow the number of quotes provided and the sales that result.
If contracts are being signed as part of a sale, these need to e drafted and reviewed by a lawyer to ensure your business is protected from liability and gives you remedy in the event of non-payment by a customer. The quote and estimates forms should also be reviewed by a business expert.
Looking at the length of a sales process gives insight into how often a sale takes place and is used to forecast sales.