EOM (end of month)
EOM is a term used both in sales and accounting, so we’ve decided to tackle both definitions.
What does EOM stand for in sales?
EOM (abbreviation for the end of the month) in sales is the monthly deadline for salespeople to achieve the goals set at the beginning of the month, e.g., close an expected number of deals and hit the quota.
The main challenge of EOM for salespeople is to keep to the chosen direction and avoid cases when they lose reality, trying to get as many wins as possible.
Typical EOM sales mistakes
Let’s consider some of the mistakes salespeople tend to make at the end of the month ― the ones that only lower their chances of closing more sales and hitting the quota:
1. Sales reps don’t select the right prospects
Being pressed for time, salespeople may resort to impulsive EOM selling. They may start pitching to everyone.
That’s a completely wrong approach. No matter how close your EOM goal is, remember you should contact only those prospects who are most likely to buy your product or service right away.
2. Sales reps neglect proper timing
You should be clever enough to align your EOM sales with the customer’s ability to pay. Most people get paid during the period between 25th and 30th every month. That’s usually the best time for them to spend money.
Try to tie your sales efforts with their perfect purchase timing. For example, you may make a discount and create the effect of urgency in your emails so that they won’t miss a chance to buy your solution.
3. Salespeople start pushing too hard
Approaching the EOM period, sales reps often forget the crucial sales rule: ‘In sales, you should listen more than speak.’ Don’t try to overdo it with words. Your prospects may count your expressiveness as a kind of pressure, which will only avert them from a purchase. Stick to your strategy of asking them critical questions, being empathetic and helpful.
EOM sales techniques and examples
To avoid widespread EOM mistakes, you may adopt several effective sales techniques that will help you remain professional and trusted during this stressful period. Each of them is supported by a sales email template for your inspiration:
Play with the price
Around 83% of customers claim they are more likely to purchase if they are offered a discount. It’s true, though not always when it comes to EOM B2B sales. Here you should be more prospective.
Work out a strategy where you’ll offer a discount to your prospects in the middle of the month. Four or five days before the EOM, contact them again and inform them that the price will be raised starting from the next month. This way, you may motivate your prospective customers to think twice and buy your solution at an old price.
Consider the following email template example:
Hello [Prospect name],
Since the month comes to its end, I would like to inform you about a new pricing structure that comes into action on [Date]. Starting from this day, the price of our [Pricing plan name] plan will rise to [How much].
You may still buy [Service or product] at a current price till [Date].
If you have any questions, feel free to contact me.
2. Involve your leaders in a conversation
You get targets from your sales leaders, so why not ask them to participate in a sales EOM closing challenge? If you ask them to write a message on behalf of their name, there will be more chances your prospects will react.
Customers appreciate attention and care, so a message from your company’s executive may sound like a sign of respect and push them to consider your offer more seriously.
Your sales leader’s email may look something like this:
Hello [Prospect name],
[Rep name] informed me about your current issue with [Problem] at [Prospect company]. So, I decided to contact you personally to answer any questions you might be having at the moment about [Your company name] solution.
I’m highly concerned about seeing our product as the right fit for the companies we work with, so I’m open to all your inquiries.
I look forward to hearing from you and will be pleased to provide you with all the information you are interested in.
[Executive name and title]
3. Ask reflection questions
When prospects object to your offer, which is not a rare thing, the deal gets stalled. It’s high time to break the ice and remind them you are still here to come in handy. Again, your goal is to drag words from a prospect, not bombard them with your visions about how wonderful your solution is. Be ready to ask questions that can help your prospects reflect on their need for your product.
Hello [Prospect name],
We chatted with you about [Your company name] offer two weeks ago, and you were not ready to accept it due to [Objection, e.g., lack of budget]. Since a new month is approaching, would it be right for me to suppose a free trial will be a good starting point for you right now to solve your [Share their pain point]?
If not, no need to worry. I can contact you in the future when this solution becomes a higher priority for you.
EOM sales are never easy. Just keep in mind that you won’t make them easier if you start accelerating your efforts and pressing prospects.
Now that it is clear what EOM means in sales and how to close your deals before the end of the month, let’s go ahead and find out what EOM stands for in accounting.
What does EOM mean in accounting?
EOM is an accounting term commonly used in two meanings.
- EOM may stand for the period (commonly the number of days) when a customer has to issue payment following the end of the month. For example, “net 14 EOM” means that payment must be made in full within 14 days following the end of the month.
- Likewise, EOM often presupposes the process of EOM accounting, i.e., procedures your company should do at the end of the month to ensure all financial operations have been completed and all financial reports have been prepared before a new month begins.
Benefits of EOM accounting
The end of month accounting procedures represent a step-by-step work with financial data, so the chances you miss any transactions, in this case, are zero-low.
Meanwhile, doing EOM accounting once in a blue moon may cost you long tedious hours afterward, when you’ll have to recheck all data. After all, you don’t want to experience the problems as PPG company once had, when a single error in expense recording cost them a $4 million downfall in net income.
Better decision making and forecasting
60% of small business owners feel they aren’t knowledgeable when it comes to accounting. Preparing the EOM report, an accountant will help your company decision-makers evaluate the current financial situation, come up with more effective business solutions, or sometimes initiate more strategic changes for your brand.
Another benefit of EOM accounting is that it helps your company predict revenue and strengthen its position on the market.
In case of regular EOM accounting, you keep financial data organized, accurate, and accessible. Thus, whenever your accountant needs information about your revenue, they may easily find it.
EOM accounting procedures
Successful EOM accounting rests on three procedures your company should complete regularly:
Account for necessary financial adjustments
It’s a common practice for your company to collect revenue and deduct expenses. However, at the end of the month, the number of transactions may not coincide with the time when original transactions have been made.
For instance, the company has paid a salary to its employees of $25,000 in total via bank transfer. However, the bank has issued additional commission that month, which cost the business $5,500 of unexpected expenses. As a result, the accountant had to correct the original entry and report $30,500 as a total sum.
Calculate account balances
When all financial adjustments have been made, your accountant should calculate the balances of each account your business holds. In other words, at the beginning of each month, the accountant records the opening balance and then adds deposits and subtracts all expenditures.
Make the end of month report
Once the balance of each account is calculated, all numbers should be recorded into your business’s accounting database. Based on these entries, an accountant should prepare the necessary reports to highlight the current financial position of your company. These reports should be presented to the management.
The way how well you control your sales and operate with your finances tells a lot about your future business position on the market. End of month sales help you analyze your monthly sales performance and come up with strategies to improve your sales efforts in general. Dealing with EOM challenges, you’ll have a better vision of what you should change in your company strategy at the moment to see your sales going up tomorrow. The rest won’t be a problem ― Snov.io will provide you with all necessary tools for your sales and revenue growth.