Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling

Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling

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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

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Main TopicsMain TopicsMain TopicsMain Topics

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

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Main TopicsMain TopicsMain TopicsMain Topics

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

Prospect

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The Tree of Business Life: Prospecting

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.

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Ethi

cal Service

Builds

T r

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Relationships

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T T T TT T T T

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Exhibit 6-1: The Selling Process Has 10 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. Pre-approach/planning2. Pre-approach/planning

1. Prospecting1. Prospecting

The sales process is a sequential series of actions

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Steps Before the Sales Presentation

Prospecting > appointment > planning Rule of thumb:

40% preparation20% presentation40% follow-up

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Exhibit 6-2: Before the Sales Presentation

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Prospecting–The Lifeblood of Selling

Prospect – qualified person or organization Prospecting – identifies potential customer Lead – name of a person or organization (also

referred to as a suspect)

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A qualified prospect is MAD

He or she has:Money to buyAuthority to buyDesire to buy

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The Prospector Has the Most Challenging Sales Career

This is the “order getter” who:Finds a leadConverts the lead into a prospectSells one day, andSells in the future too

WOW! That is a challenge.

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Some Prospect, Some Do Not

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

Examples are:Financial services, such as life insuranceReal estate

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Some Prospect, Some Do Not, cont…

Many organizations do not prospect. Examples are large consumer goods firms as

General Mills* and Colgate*.

* products and associated images used for illustrative purposes only

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Compensation for the Salesperson that Prospects is Often:

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

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Compensation for the Salesperson 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.

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Where to Find Prospects

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

might not use the same sources.

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Planning a Prospecting Strategy

Prospecting requires a strategy. It is a skill that can be constantly improved

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Prospecting Methods

E-prospecting on the Web IndividualsOrganizations

Cold canvassing Endless chain – customer referral Orphaned customers Sales lead clubs

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Prospecting Methods, cont…

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

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Exhibit 6-4: Prospecting Methods that Work!

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

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

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Prospecting 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 prospects’ and customers’ doors to help them.

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Referrals Are Used in Most Prospecting Methods

Eight of the twelve popular prospecting methods directly ask for referrals.

Referrals can be directly used in: Cold canvassing Endless chain customer referrals Orphaned customers Sales lead clubs Public exhibitions and demonstrations Center of influence Telephone Networking

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The Prospect Pool

Leads Referrals Orphans Your customers

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Exhibit 6-7: Components of the Prospect Pool

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The 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 personObtain prospect name(s) from person

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The Referral Cycle, cont…

The secret is to ask correctly during referral cycle:The pre-approach contact phaseThe presentation Product delivery contact phase

Service and follow-up contact phase: Customer service

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

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Don’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.

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Treat the Referral Like a Customer

Once you have sold the referral, and gotten more referrals, ask this 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!

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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.

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Call Reluctance: How to Conquer the Fear

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Obtaining the Sales Interview

The key factor in selling process is obtaining a sales interview.

The benefits of appointment making:Telephone appointmentPersonally making the appointment

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

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Wireless E-mail Helps You Keep in Contact and Prospect

No one needs constant contact with the home office, customers, and prospects more desperately than a sales representative.

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Summary of Major Selling Issues

The sales process involves a series of actions beginning with prospecting for customers:Find prospects to contactObtain appointmentsPlan the entire sales presentation

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Summary of Major Selling Issues, cont…

Popular prospecting methods:Cold canvasEndless chain methodsPublic exhibitions and demonstrationsLocating centers of influenceDirect mailoutsTelephone and observation

Salesperson must develop ways of getting to see the prospect.

End of Chapter 6End of Chapter 6End of Chapter 6End of Chapter 6

Chapter

Chapter

6

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.