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Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling

Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling

Chapter

Chapter

7

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

Chapter

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Main TopicsMain TopicsMain TopicsMain Topics

The Tree of Business Life: ProspectingThe Sales Process Has 10 Steps

Steps Before the Sales PresentationProspecting—The Lifeblood of Selling

Where to Find ProspectsPlanning a Prospecting Strategy

Chapter

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Main TopicsMain TopicsMain TopicsMain Topics

Prospecting MethodsProspecting Guidelines

The Referral CycleCall Reluctance Costs You Money!

Obtaining the Sales InterviewWireless 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

IT C

Ethi

cal Service

Builds

T r

u e

Relationships

TT T

T T T TT T T T

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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. ProspectingThe 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% commission – if you do not sell, you do not earn

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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 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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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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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 > planning Rule of thumb

40% preparation20% presentation40% follow-up

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Prospecting–The Lifeblood of Selling

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

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

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Exhibit 7-6: 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 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

Leads Referrals Orphans Your 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 phase

Service and follow-up contact phase: Customer service

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Exhibit 7-8: 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 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

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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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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 are listed in order from most common to least common)

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The 12 Faces of Call Reluctance, cont..

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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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

The 12 Faces of Call Reluctance, cont…

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The 12 Faces of Call Reluctance: How to Conquer the Fear

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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 yourselfDevelop friends in the prospect’s firmCall at the right time on the right personDo 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