How To Shortcut Your Sales Cycle: Prequal vs Discovery vs Demo

Yesterday I was running a session with one of my sales teams.

We were going through a restructuring of their initial sales cycle, and something exciting came up.

When I started working with them, we defined the sales cycle as splitting discovery and demo.

But as I listened to more calls and understood better, something new came up.

They weren't running discovery calls properly, but more pre-qualification and then doing demos.

So we redefined and implemented the pre-qual + disco/demo approach.

Today, I want to discuss the nuances of this stage of the sales cycle, including the pre-qual and discovery + demo, when to split them, and when to combine them.

But first:

What are Prequalification and Discovery?

Prequalification is typically a short phone call to quickly assess whether you're speaking with the right person and whether the potential customer is a good match for your product.

The discovery call is a deeper conversation. Often, this is done via video meetings like Zoom or Google Meet, which explore the prospect's needs, goals, and pain points in detail.

Why Differentiate Between Prequalification and Discovery?

The main difference between these two stages is the value of what you're selling and the complexity of your sales cycle.

Your goal is speed and efficiency for products or services with a lower Average Contract Value (ACV) under €1,000.

It is ideal to run a brief prequalification call followed by a combined discovery and demo.

This approach reduces unnecessary meetings and streamlines the sales cycle, shortening your sales cycle.

On the other hand, if you sell products with a higher ACV (typically above €3-5K), the sales cycle becomes more complex.

Separating the discovery call and the product demo is important in this scenario.

How to Structure a Prequalification Call

A prequalification call should last no more than five minutes.

It is typically done over the phone and targets four simple criteria known as BANT:

• Budget: Does the prospect have a clear budget for your solution?
• Authority: Are they the decision-makers, or do they have significant influence?
• Need: Do they genuinely need your product?
• Timeline: When do they intend to implement your solution?

Simple questions you might ask include:

• "Why are you interested in our product/service?"
• "How do you usually purchase solutions like ours?"
• "Have you set aside a budget, or how much are you currently spending?"
• "When would you ideally start using this product?"

After this quick check, schedule the combined discovery and demo if the prospect fits your criteria.

Combined Discovery and Demo

For quick sales, this combined session should ideally last about 30 minutes, broken down as follows:

• Discovery conversation (5 minutes): Quickly reconfirm and explore the details from your prequalification.
• Brief introduction or pitch using slides (5 minutes).
• Product Demo (15 minutes): Show clearly how your product meets the identified needs.
• Pricing discussion (5 minutes).
• Agreeing on next steps (5 minutes).

This approach allows you to close the deal during this session or swiftly identify if further discussions are required.

Separated Discovery and Demo

Combining discovery and demo sessions can be ineffective for larger, more complex sales.

Here, separating them into distinct calls makes sense:

• Discovery Call (30 minutes): Deep dive into the customer's needs and qualifications, clearly understanding their context and requirements.
• Demo and Proposal (30-45 minutes): Tailor your product demonstration based on insights from the discovery call.

Benefits and Risks

The quicker approach (prequalification followed by combined discovery and demo) speeds up your sales cycle.

This can lead to faster closings and a smoother experience.

However, it also carries a higher risk of poorly qualified prospects and potentially more lost deals.

Choosing the correct approach depends entirely on your specific product and business needs.

Small ACVs can combine the two approaches. Bigger deals, however, need to follow the normal discovery and demo playbook.

Understanding and implementing this distinction appropriately is key for developing your sales playbook.

Thanks for reading this far. I will see you all next week!