In a world where you can get the answer to almost any question you have simply by asking your smartphone, it can be hard to wait.
And in sales, nothing can be more frustrating than a long, dragged out sales cycle where getting a straight and final answer seems next to impossible.
We all are told to strive for shorter sales cycles. Sales velocity is of the utmost importance, and transactional selling is becoming the gold standard. Short sale cycles increase revenue and maximize team efficiency. A sales rep’s energy should be focused on those deals where they can get a yes or no faster, right?
Well, not always. In reality, that long sales cycle is worth your time. Here’s why.
Big Deals Have a Long Sales Cycle
Big deals take a long time to close. If a company is going to dish out top dollar for your product/service, they need to make sure they’re going to see a return on their investment.
Oftentimes this involves a lot of back and forth between the salesperson, the prospect, and various other key stakeholders in the company. Because of this, big deals require more effort than usual, as salespeople conduct more activities with more people during an especially long sales cycle.
Because of the added complexity that comes with the demands of big deals, they are also lost significantly more often than average-sized deals. With more key players and bigger commitments comes more objections. A salesperson could pour all of their energy into a deal that is eventually lost because of a reason out of their control.
There’s just nothing you can do about it.
So with all this downside, is that long sales cycle even worth it? Yes!
Long Sales Cycles are Worth Your Time
Even though big deals with long sales cycles require so much time and energy, they are worth the risk – the potential payoff is that high.
To be more specific, the average annual contract value of a deal in the top quartile is 2.6 times the average annual contract value of an average deal.
So even though big deals have a long sales cycle and require more effort, the time spent working them returns 1.7 times the revenue for the effort expended.
In the end, they’re worth the risk.
To see more data that justifies taking a chance on big deals, check out our free guide: Are Big Deals Worth It?