SPANCO is an abbreviation of 6 stages of a typical sales cycle, which usually occurs during every sales process. This framework was given to the sales community by Xerox. Even though the stages of the Sales Cycle in each industry may differ, the basic framework for most sales processes would typically fit within SPANCO.
SPANCO stands for:
S - Suspect
P - Prospect
A - Approach
N - Negotiate
C - Close
O - Order
Let's go through each stage in detail:
In this stage, the tentative customers of products are identified and segmented into subgroups based on demography and trends. These potential customers are gathered from multiple sources like directories, mail opt-in lists, networking platforms, referrals, etc. This may also include cross-sell or upsell opportunities with existing customers. Based on this list, a targeted marketing plan is designed to reach these potential customers.
In Euphoria CRM, there is a provision for running email and SMS campaigns to reach these potential customers.
Upon executing marketing campaigns for various potential customer groups, some individuals will express their interest in the product. These individuals are the prospects in the sales cycle. They are logged into the system, and a complete lead follow-up cycle is followed.
Euphoria CRM provides tools to automatically capture leads through campaigns or manually log the leads.
The logged leads are the input for this stage. The approach for handling leads differs from organization to organization. During this stage, customer requirements are evaluated, customer meetings are held, solutions proposed, and quotations/proposals are shared with the customer. Leads are quantified and classified based on various factors. Different contacts are identified.
Euphoria CRM provides features for a customized lead life cycle, depending on the implementation. All the data generated during the lead life cycle is captured, and leads are prioritized and classified.
This is a two-way process involving discussions between the customer and the sales team. This is one of the most crucial stages of the sales cycle, as it can make or break a sales deal. Competitors are evaluated, and how our proposal best suits the customer is considered. This stage determines whether the client will buy from you or not. Negotiations with the client regarding pricing and associated terms and conditions take place during this phase. It’s important to demonstrate that the value of your product is more than the customer’s payment.
Euphoria CRM allows for multiple revisions of proposals/quotes. The sales team continues to evaluate the lead from various risk factors and takes suitable actions.
At this point, the customer agrees to the terms and conditions of the proposal. The "Lead" is considered "Closed" and is converted into a "Deal". The customer then issues the purchase order.
Euphoria CRM allows the process of converting a lead to closure. A new deal is created, including new customer records and associated purchase orders in the system.
At this point in the sales cycle, the order is fulfilled to the customer’s satisfaction. The accounts team issues an invoice to the customer. At the end of the sales cycle, customer feedback is collected, and appropriate actions are taken to improve the sales process.
Euphoria CRM integrates with Tally for seamless invoice generation.
This is just one sales cycle. The sales team maintains a better customer relationship by staying in continuous communication with the customer using CRM. Building a long-term relationship with the client opens up opportunities for upselling and cross-selling, thus increasing the Customer Lifetime Value (CLTV) of that particular customer.