Settling the sales process and making profitable deals is the engine of companies’ progress. To make this possible, deal management is a process in business. It consists of defining the parameters of contracts and using them in negotiations to close deals on terms that benefit the company. This is a complex process that must consider many important factors. In this article, we will discuss deal management’s concept in more detail.
What is deal management?
As already mentioned, deal management identifies, monitors, and analyzes important parameters related to the deal. The range of parameters is quite wide and can include anything. The main goal of the deal management process is to ensure that the agreement is profitable for the seller, offering maximum sales profit and return on investment. But quality deal management professionals will also consider a company’s market share, how the deal will affect it going forward, and feel all revenue, not just revenue from an individual product. Deal management involves the entire sales process because if agreements are made without analyzing the details, they can be very costly in the long run.
Deal Management Process.
For deal management to be truly successful, professionals must adhere to certain steps. In general, these can be divided into three stages:
- Planning the process
Look back and see from the outside how your deal management team conducted the buying and selling process: from the past to today. To understand how well you completed the transaction, answer the following leading questions:
-Who is responsible for each stage of the closing process?
-Which of these steps did you get the highest return?
-At what point did your team have problems?
-What resources were involved during the management of the deal?
-What resources should you provide to your team to improve deal closing efficiency?
- Implementation of the process
During this process, it’s important to leverage technology solutions to keep track of all your deals. Dedicated software can help you more easily identify where each of your arrangements is, and you can customize your search for potential discounts that fit your criteria. Professional deal management software provides automated reports on risk, revenue, sales milestones, closed deals, and more. Use informative dashboards to track your sales process and find profitable opportunities.
- Tracking deal performance
The importance of a successful deal cannot be overstated. That’s why you need to monitor its effectiveness and adjust it constantly. If a sale goes awry and fails, look into its reasons, and make sure it doesn’t happen again.
Tips for Better Deal Management
Below we will highlight two useful tips to help make the deal management process more effective:
- Make sure you’ve gathered all the data you need – It’s important to have the right data for a successful opportunity. The list of such data includes information about potential customers, their transaction history with your business, engagement, demographics, interests, etc. In addition, pay special attention to possible problems with the transaction to determine the chances of closing
- Communicate with decision makers – When a company decides to make a purchase, more than one person is involved in making certain decisions. That’s why it’s important to connect with at least two parties to the deal who can influence the decision
One of the best transactional software is the virtual data room. Not only does it provide top-notch security, but it also provides monitoring, automatic reporting, and collaboration functions.