Prospecting—The Lifeblood

of Selling

Chapter 6

6C

hapterC

hapter

Main TopicsMain Topics

The Tree of Business Life: Prospecting The Sales Process Has 10 Steps Steps Before the Sales Presentation Prospecting—The Lifeblood of Selling The Leaking Bucket Customer Concept Where to Find Prospects Planning a Prospecting Strategy Prospecting Methods Prospecting Guidelines

Main Topics, cont...Main Topics, cont...

The Referral Cycle Call Reluctance Costs You Money! Obtaining the Sales Interview Wireless E-mail Helps You Keep in Contact and

Prospect

The Tree of Business Life: The Tree of Business Life: ProspectingProspecting

Guided by The Golden The Golden RuleRule, remember:

People buy from those they know and trust

Prospecting is not easy unless you focus on helping, not selling

People who trust you give referrals

Referrals take the burden of prospecting off the salesperson

Referrals are earned through integrity, trust, and character

IT C

Ethi

cal Service

Builds

T r

u e

Relationships

TT T

T T T TT T T T

Exhibit 6-1: The Selling Process Has Exhibit 6-1: The Selling Process Has 10 Important Steps10 Important Steps

10. Follow up10. Follow up

9. Close9. Close

8. Trial close8. Trial close

7. Meet objections7. Meet objections

6. Determine objections6. Determine objections

5. Trial close5. Trial close

4. Presentation4. Presentation

3. Approach3. Approach

2. Preapproach2. Preapproach

1. Prospecting1. ProspectingThe sales process is a sequential series of actions

Some Prospect, Some Do NotSome Prospect, Some Do Not

Many salespeople prospect, both those selling business-to-business and those selling to consumers

Examples are: Financial services as life insurance Real estate

Compensation for the Salesperson Compensation for the Salesperson that Prospects is Often:that Prospects is Often:

Based upon 100% commission – if you do not sell, you do not earn

Some Prospect, Some Do Not, cont…Some Prospect, Some Do Not, cont…

Many organizations do not prospect Examples are large consumer goods firms, such

as General Mills* and Colgate*

* products and associated images used for illustrative purposes only

Compensation for the Salesperson Compensation for the Salesperson that Does Not Prospect is Often:that Does Not Prospect is Often:

Based upon mostly salary with a small bonus and expenses such as car and office supplies paid

If you do not sell you still get paid, but not for very long

The Prospector Has the Most The Prospector Has the Most Challenging Sales CareerChallenging Sales Career

This is the “order getter” who: Finds a lead Converts the lead into a prospect Sells one day, and Sells in the future too

WOW! That is a challenge

Steps Before the Sales PresentationSteps Before the Sales Presentation

Prospecting > appointment > planning Rule of thumb

40% preparation 20% presentation 40% follow-up

Exhibit 6-2: Before the Sales PresentationExhibit 6-2: Before the Sales Presentation

Prospecting–The Lifeblood of SellingProspecting–The Lifeblood of Selling

Prospect – qualified person Prospecting – Identifies potential customer Lead – only know name

Prospecting–The Lifeblood of SellingProspecting–The Lifeblood of Selling

Qualified prospect is MAD Money to buy? Authority to buy? Desire to buy?

Sales Prospecting Funnel All leads and prospects must be considered and filtered

through the MAD process before they become qualified prospects

The Leaking Bucket Customer The Leaking Bucket Customer ConceptConcept

All salespeople lose X amount of sales and customers per year. This is illustrated in the Leaking Bucket Customer Concept: Customers come into the top and leave through a hole

in the bottom

Where to Find ProspectsWhere to Find Prospects

Sources may be varied or few Persons selling different services and goods might

not use the same sources

Planning a Prospecting StrategyPlanning a Prospecting Strategy

Prospecting requires a strategy A skill that can be constantly improved

Exhibit 6-4: Prospecting Methods that Exhibit 6-4: Prospecting Methods that Work!Work!

Prospecting MethodsProspecting Methods

E-prospecting on the Web Individuals Organizations

Cold canvassing Endless chain customer referral Orphaned customers Sales lead clubs

Prospecting Methods, cont…Prospecting Methods, cont…

Prospect lists Become an expert – get published Public exhibitions and demonstrations Center of influence Direct mail Telephone and telemarketing Observation Networking

Exhibit 6-5: The Processing System Exhibit 6-5: The Processing System Within a Telemarketing CenterWithin a Telemarketing Center

Exhibit 6-6: Reports From a Telemarketing Center Exhibit 6-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firmto Other Marketing Groups Within the Firm

Prospecting GuidelinesProspecting Guidelines

Three criteria are:1. Customize to each prospect

2. Concentrate on high potential customers fruit

3. Call back on no-buys Always keep knocking on prospect’s and

customer’s door to help them

Referrals Are Used in MostReferrals Are Used in Most

Prospecting Methods Cold canvassing Endless chain customer referrals Orphaned customers Sales lead clubs Public exhibitions and demonstrations Center of influence Telephone Networking

The Prospect PoolThe Prospect Pool

Leads Referrals Orphans Your customers

Exhibit 6-7: Components of the Exhibit 6-7: Components of the Prospect PoolProspect Pool

The Referral CycleThe Referral Cycle

Obtaining referrals is a continuous process without beginning or end

Referral cycle – when and how to ask for referrals The parallel referral sale

Sell the product to person Obtain prospect name(s) from person

The Referral Cycle, cont…The Referral Cycle, cont…

The secret is to ask professionally at each phase of the referral cycle

The preapproach contact phase The presentation Product delivery contact phase Service and follow-up contact phase: customer

service

Exhibit 6-8: The Referral Cycle: Exhibit 6-8: The Referral Cycle: When to Ask for ReferralsWhen to Ask for Referrals

Don’t Mistreat the ReferralDon’t Mistreat the Referral

Mistreatment can have a ripple effect The mistreated referral tells your customer – you

may lose both! Remember to follow the Golden Rule

Treat the Referral Like a CustomerTreat the Referral Like a Customer

Once you have sold the referral, and gotten more referrals, ask the new customer to contact the referring customer on her experience with the salesperson

Now you have two customers giving referrals This can create an endless chain of referrals

quickly filling your prospect pool with only customers and referrals

Now, no more cold calling

Call Reluctance Costs You Money!Call Reluctance Costs You Money!

Call reluctance refers to not wanting to contact a prospect or customer

For many salespeople, owning up to call reluctance is the most difficult part of combating it

Call reluctance keeps you from: Helping others Earning what you’re worth

Obtaining the Sales InterviewObtaining the Sales Interview

Key factor in selling process is obtaining a sales interview

The benefits of appointment making Telephone appointment Personally making the appointment

Believe in yourselfDevelop friends in the prospect’s firmCall at the right time on the right personDo not waste time waiting

Wireless E-Mail Helps you Keep in Wireless E-Mail Helps you Keep in Contact and ProspectContact and Prospect

Wireless E-mail helps keep the sales representative mobile.

Summary of Major Selling IssuesSummary of Major Selling Issues

The sales process involves a series of actions beginning with prospecting for customers

Find prospects to contact Obtain appointments Plan the entire sales presentation

Summary of Major Selling Issues, Summary of Major Selling Issues, cont…cont…

Popular prospecting methods Cold canvas Endless chain methods Public exhibitions and demonstrations Locating centers of influence Direct mailouts Telephone and observation

Salesperson must develop ways of getting to see the prospect