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Prospecting—The Prospecting—The Lifeblood of SellingLifeblood of SellingProspecting—The Prospecting—The Lifeblood of SellingLifeblood of Selling

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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ChapterChapter

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ChapterChapter

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

The Sales Process Has 10 Steps

Steps Before the Sales Presentation

Prospecting—The Lifeblood of Selling

Where to Find Prospects

Planning a Prospecting Strategy

Prospecting Methods

The Sales Process Has 10 Steps

Steps Before the Sales Presentation

Prospecting—The Lifeblood of Selling

Where to Find Prospects

Planning a Prospecting Strategy

Prospecting Methods

Main Topics

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ChapterChapter

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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Prospecting Guidelines

The Prospect Pool

The Referral Cycle

Call Reluctance Costs You Money!

Obtaining the Sales Interview

Wireless E-mail

Prospecting Guidelines

The Prospect Pool

The Referral Cycle

Call Reluctance Costs You Money!

Obtaining the Sales Interview

Wireless E-mail

Main Topics

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The Sales Process Has 10 Steps

6 . Determine the objectives1. Prospecting

3. Approach

2. Preapproach

4. Presentation

5. Trial close

7 . Meet objections

8 . Trial close

9 . Close

1 0 . Follow-up

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Exhibit 7-1: 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. Preapproach - planning2. Preapproach - planning

1. Prospecting1. Prospecting

The sales process is a sequential series of actions

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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 as life insuranceReal estate

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Compensation for the Salesperson that Prospects is Often

Based upon 100% commissionIf you do not sell, you do not earn

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Some Prospect, Some Do Not

Many organizations do not prospect. Examples are large consumer goods firms as General Mills and Colgate

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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, office supplies paid

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

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The Prospector Has the Most Challenging Sales Career

This is the “order getter” whoFinds a lead

– Converts into a prospect

– Sells one day,

• And in the future

WOW! That is a challenge

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Prospecting - The Lifeblood of Selling

Qualified prospect is MADMoney to buy?Authority to buy?Desire to buy?

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Exhibit 7-2: Before the Sales Presentation

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Steps Before the Sales Presentation

Prospecting appointment planningRule of thumb

20% presentation

40% preparation

40% follow-up

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Prospecting—The Lifeblood of Selling

Prospect - qualified personProspecting - identifies potential customerLead - only know name

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Where to Find Prospects

Sources may be varied or fewPersons selling different services and goods

might not use the same sources

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Planning a Prospecting Strategy

Requires a strategyA skill that can be constantly improved

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Exhibit 7-4: Prospecting Methods that Work!

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Prospecting Methods

E-prospecting on the WebIndividualsOrganizations

Cold canvassingEndless chain—customer referralOrphaned customersSales lead clubs

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Prospecting Methods cont…

Prospect listsBecome an expert—get publishedPublic exhibitions and demonstrationsCenter of influenceDirect mailTelephone and telemarketingObservationNetworking

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Exhibit 7-5: The Processing System Within a Telemarketing Center

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Exhibit 7-6: Reports From a Telemarketing Centerto 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 prospect’s and customer’s door to help them.

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Referrals Are Used in Most

Prospecting Methods

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The Prospect Pool

LeadsReferralsOrphansYour customers

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Exhibit 7-7: 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 saleSell 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 cycleThe preapproach contact phaseThe presentation Product delivery contact phaseService and follow-up contact phase

– Customer service

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Exhibit 7-8: The Referral Cycle: When to Ask for Referrals

Preapproach

Serviceand

follow-up

Prospect

Pool

Productdelivery

Presentation

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Don’t Mistreat the Referral

Mistreatment can have a ripple effectThe 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 sell the referral, and gotten referrals, have the new customer contact the “referring customer” on experience with the salesperson

Now you have two customers giving referralsThis 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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Exhibit 7-9: The 12 Faces of Call Reluctance

Think you might suffer from call reluctance?

See if you fit 1 of the 12 classic types identified by researchers George Dudley and Shannon Goodson. They’re listed in order from most common to least common.

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Exhibit 7-9: The 12 Faces of Call Reluctance

1. Yielder - Fears intruding on others or being pushy

2. Overpreparer - Overanalyzes, underacts

3. Emotionally unemancipated - Fears loss of family approval, resists mixing business and family

4. Separationist - Fears loss of friends, resists prospecting among personal friends

5. Hyper-pro - Obsessed with image, fears being humiliated

6. Role rejecter - Ashamed to be in sales

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Exhibit 7-9: The 12 Faces of Call Reluctance

7. Socially self-conscious - Fears intruding on others or being pushy. Intimidated by upmarket customers.

8. Doomsayer - Worries, won’t take risks

9. Telephobic - Fears using the telephone for prospecting or selling

10. Stage fright - Fears group presentations

11. Referral aversions - Fears disturbing business or client relationships

12. Oppositional reflex - Rebuffs attempts to be coached

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Exhibit 7-9: The 12 Faces of Call Reluctance: How to Conquer the Fear

How to Conquer the Fear First and foremost, you must admit to having

call reluctance

Second, determine your call reluctance typeand adopt appropriate countermeasures

Third, follow up, keep plugging, make calls

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Exhibit 7-9: The 12 Faces of Call Reluctance: How to Conquer the Fear

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Obtaining the Sales Interview

Key factor in selling process is obtaining a sales interview

The benefits of appointment makingTelephone appointmentPersonally making the appointment

– Believe in yourself

– Develop friends in the prospect’s firm

– Call at the right time on the right person

– Do not waste time waiting

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Summary of Major Selling Issues

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

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Summary of Major Selling Issues cont…

Popular prospecting methodsCold canvasEndless chain methodsPublic exhibitions and demonstrationsLocating centers of influenceDirect mailoutsTelephone and observation

Salesperson must develop ways of getting to see the prospect