Sales, in general, is a complex process that requires proper strategies designed and executed in the right way to make it a success. B2B sales follow a sales funnel process which is a step-by-step procedure every prospect goes through before they turn into your customer. Every prospect you get today may not become your customer tomorrow. Follow up only the qualified leads to save your time and efforts. In order to identify a qualified prospect, IBM developed a qualification criterion called BANT (Budget, Authority, Need, and Timing) in the 1950s. It is one of the oldest and widely used techniques to identify qualified leads for your business. Let’s see in detail what is BANT in sales and how effective it is today in 2022.
# Objectives of BANT
The main goal of the BANT methodology is to reduce the time taken for a sale to happen. As we all know, each client is unique. They may not possess similar characteristics and each client takes a different time to decide. We should keep this in mind before we choose any technique to follow. Understand your client’s requirements and business deeper to make them stay longer with you. How well you understand your lead is more important than the number of leads you get. BANT is a methodology that helps you in this process. Now, let’s see the BANT sales process in detail:
Budget: Can the prospect afford your product/service?
It may seem a simple question but money is the critical factor when it comes to qualifying a prospect. Only when the prospect passes this question, you could consider them for the next step in this BANT sales process. If a prospect keeps asking for a lower price than your product value, it’s high time you should stop chasing them. Once they become your client, you can consider giving offers or initial free trials. But that doesn’t mean that you should always reduce your product value. Make sure your prospect’s budget aligns with your company’s product/service.
Authority: Does the prospect possess enough authority to decide on the purchase?
During the first-ever discovery call, you have with your prospect try to understand their hierarchy and find out the people involved in deciding your product purchase. You can’t rely on passing the information because it extends the process further and there is a chance of misleading or confusion. Try to include the authorities in the very next call/meeting to finalize and close the deals faster.
Need: Does the prospect need my product/service? Does it solve the problem they face?
Once you get a prospect, you should analyze their problems during the initial discussion itself. This will give you a clear picture of the client’s pain points and you will be able to figure out whether your product can address them effectively. If you are not sure of these criteria, then it is not advisable to proceed further because poor fits are a struggle for both ends. Unless you fulfill the client’s needs completely, the sale is difficult.
Timeline: How soon can the prospect need your product? Is it an urgent need for their company?
Time is gold, as they say, here we can say timeline. There will be prospects who need your product in a week or a month or next year. Give priority to the early birds as they need your product on an urgent basis. Closing the deal sooner is always better when it comes to B2B sales. The longer the process, the lower the probability of a sale. In some cases, there will be a need in the future. For example, the client might be planning to purchase next year. In that case, it is necessary to be in touch with them and follow up with new enhancements of your product/service to push them to make a decision.
#How effective is BANT in 2022?
The sales process has gone through a phase of rapid transformation over the years, especially in B2B. Now in 2022, it is possible to get a sale done even in a single call and a few clicks. Hence there is a common question about whether the BANT sales method is effective today in 2022. Salespeople say “Yes, it is!”. You need to update it by adding more meaningful questions through which you can get detailed information about your prospects. But the basic framework of this method is still useful in qualifying the prospects during the discovery call. Also, the salespeople say it is easy to follow by the newcomers in sales and remain effective from day one till today.
The only thing to be noted here is that BANT is a very basic qualification criterion. It can be used to identify qualified prospects. But to take them further into your business, you need to investigate more about their business needs and how they work. Unless you know the details, even if they become your client there is a high chance that they end up soon if the business synergy doesn’t profit them. So try to add more detailed sub-questions under each topic of BANT.
Endnotes
Be it sales, marketing, or any other functionality of business, the old methodologies are facing criticism and the underlying question is whether these are effective in today’s digital world. We can’t say they are ineffective only because they are old. BANT is one such old methodology but salespeople follow it even today in business. Even though they are good, we can’t use old techniques as such today. We need to update and use it to fit our business needs. Hence, we can say BANT in sales is here to stay but with some enhancements according to the changing business environment.
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