developing and qualifying a prospect base concepts and practices

Developing and Qualifying a

Prospect Base

Concepts and Practices

9-2

Prospect, Prospecting, and Prospect Base Defined

Prospect: a potential customer that meets the qualification criteria established by your company

Prospecting: identifying potential customers

Prospect base: is made up of current customers and potential customers

9-3

Importance of Prospecting

Every salesperson must cope with customer attrition

Customers move, firms go out of business, sales lost to competition

Average company may lose 15 to 20% of customer base every year

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Girard’s Ferris Wheel—Supply

FIGURE 9.1

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Girard’s Ferris Wheel—Loss

FIGURE 9.1CONTINUE

D

9-6

Prospecting Requires Planning

Increase number of people who board the Ferris wheel

Improve the quality of prospects

Shorten sales cycle by determining which prospects are “qualified”

Prospecting plans must be monitored continuously for effectiveness

9-7

Referrals

Prospect recommended: by current satisfied customer or one familiar with product or service

Endless chain: ask contact who else could benefit from product

Referral organizations: facilitate networking

Friends, family members, centers of influence: a person may not make decision but has influence on those who do . . . opinion leaders

9-8

Hancock’sLead

Generation

9-9

Business Network International

Visit the world’s largest referral organization

www.bni.com

9-10

Directories

Hundreds of business and industrial directories available

Many major trade associations publish directories

Be sure to use current copy or edition as prospects shift firms; track people and companies

9-11

Thomas Register

9-12

Trade Shows/Publications

Trade shows and conventions: your company may have a booth at key trade shows/expositions

Trade publications: each industry has trade publications that sales professionals need to read

Join trade associations: many salespersons join trade associations to gain access to potential buyers

9-13

Telemarketing

Telemarketing: the practice of marketing goods and services through telephone contact

To identify buyers and generate contact lists for sales staff

To qualify prospects To verify sales leads

generated by other methods

To conduct follow-ups

9-14

Direct Response and Sales Letters

Direct response advertising: often features inquiry cards or information requests via mail or telephone

Sales letters: send sales letters to decision makers, then follow up

9-15

Website

Websites provide cost-effective way for sales professionals to:

Project personal image

Provide additional information

Generate leads from visitors to site

Present product information

Establish e-mail lists

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Computerized Databases

In-house databases: your firm may already have a comprehensive database; sometimes referred to as the “house list” with details on customers, purchase patterns, and so forth

List sources: wide range of precise lists available from variety of sources

See www.infoUSA.com

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Computerized Databases

Purchasing databases or lists can be costly; price usually set on cost-per-thousand names

Not all relevant databases are equal; some “pull” better than others

Pull is the percentage of the list resulting in qualified prospects or actual sales

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Cold Calling

Simply calling prospects without referrals

New salespeople rely on these as they haven’t built referral base

Must be strategically planned

Prelude to in-person appointment

A way to introduce yourself and your company to a prospect

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Networking

Making and profiting from personal connections

Networking guidelines

Meet as many people as you can Tell them what you do Do not do business while networking Offer business card Edit contacts and conduct follow-ups

9-20

Three Types of Networks

FIGURE 9.2

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Educational Seminars

Provide opportunity to showcase product without pressuring to buy

Require extensive preparation

Start value-added process

Can attend or present at industry sponsored seminars or offer your own

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Non-Sales Employees

Non-sales personnel can be valued source of leads

Prospecting not necessarilyexclusive task of sales force

Non-sales personnel oftenneed training and incentives

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Combination Approaches

Salespersons generally rely on combination of prospecting methods

Some methods have higher yield than others

Important to use CRM technology to help maximize efficiency

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Qualifying Prospects

Key time-saving criteria:

Does the prospect need my product?

Can prospect make the buying decision?

Can prospect pay for the purchase?

Will anyone close the sale?

9-25

Organizing Prospect Information

Prospect as an individual

Prospect as a business representative

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Prospect Information

Harvey Mackay suggests 66-question customer profile.

See it at:

mackay.com

9-27

Prospecting and Sales Forecasting Plans

Important to balance time and organize contacts:

Prepare a list of prospects

Forecast potential sales volume for each new account, by product

Carefully plan the sales route to minimize time and cost