BMGT 204: Sales Strategies and Techniques

Chapter 6: Prospecting: The Lifeblood of Selling

The Golden Rule: Prospecting

• 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

The sales process is a sequential series of actions

10. Follow-up & Service

9. Close

8. Trial close

7. Meet objections

6. Determine objections

5. Trial close

4. Presentation •Product SELLs •Marketing Plan SELLs •Business Proposition SELLS

3. Approach

2. Preapproach/Planning

1. Prospect/Customer

Compensation for the Salesperson that Prospects is Often:

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

• Can be lucrative but highly competitive

Some Prospect, Some Do Not

• Many organizations do not prospect

• Examples are large consumer goods firms as General Mills* and Colgate*

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

The Prospector Has the Most Challenging 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

• That is a challenge

Steps Before the Sales Presentation

• Prospecting > appointment > planning

• Rule of thumb

• 40% preparation

• 20% presentation

• 40% follow-up

Exhibit 6.2: Before the Sales Presentation

Prospecting

Obtaining an appointment

Preapproach planning

Prospecting–The Lifeblood of Selling

• Prospect – qualified person

• Prospecting – Identifies potential customer

• Lead – only know name

The Leaking Bucket Customer Concept

• 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

Planning a Prospecting Strategy

• Prospecting requires a strategy

• A skill that can be constantly improved

http://www.youtube.com/watch?v=RmOcFund1AM

Prospecting Methods

• E-prospecting on the Web

• Individuals

• Organizations

• Cold canvassing

• Endless chain – customer referral

• Orphaned customers

• Sales lead clubs

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 Within a

Telemarketing Center

Prospecting Guidelines

• Three criteria are:

• Customize to each prospect

• Concentrate on high potential customers

• Call back on no-buys

• Always keep knocking on prospect’s and customer’s door to help them

Referrals 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 Pool

LeadsReferralsOrphansYour customers

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 person

• Obtain prospect name(s) from person

• The secret is to ask correctly during 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:

When to Ask for Referrals

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

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

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 Interview

• Key factor in selling process is obtaining a sales interview

• The benefits of appointment making

• Telephone appointment

• Personally 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