Learning Objectives After reading this chapter, you should understand: 2 The steps in the personal...

Learning Objectives

After reading this chapter, you should understand:

22

The steps in the personal selling The steps in the personal selling process.process.

The importance of prospecting.The importance of prospecting.

How to qualify leads as prospects.How to qualify leads as prospects.

Several prospecting methods.Several prospecting methods.

The steps in developing a prospecting The steps in developing a prospecting

planplan. .

Stages In the Personal Selling Process

The professional selling process is a continuous, interacting, and The professional selling process is a continuous, interacting, and overlapping cycle of seven stages:overlapping cycle of seven stages:

Prospecting and qualifying prospectsProspecting and qualifying prospects

Planning the sales call (the preapproach)Planning the sales call (the preapproach)

Approaching the prospectApproaching the prospect

Making the sales presentation and demonstrationMaking the sales presentation and demonstration

Negotiating prospect resistance and objectionsNegotiating prospect resistance and objections

Confirming and closing the saleConfirming and closing the sale

Following up and servicing the accountFollowing up and servicing the account

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

6. 6.

7. 7.

Why Buyers Won’t See Salespeople

1. They may have never heard of the salesperson’s firm.

2. They may have no need; they just bought the product category.

3. The buyer may have their own deadlines on other issues.

4. Buyers are constantly getting calls from salespeople and do not have the time to see them all.

5. Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.

Prospecting

The process of identifying, qualifying, and The process of identifying, qualifying, and prioritizing organizations and individuals that prioritizing organizations and individuals that have the need for and potential to purchase have the need for and potential to purchase the salesperson’s market offering of products the salesperson’s market offering of products and services.and services.

Qualified Qualified ProspectsProspectsQualified Qualified ProspectsProspects

SalesSalesLeadsLeadsSalesSalesLeadsLeads

Screening Screening Procedures Procedures

for Qualifying for Qualifying LeadsLeads

Prospecting Plans are the Foundation for Effective Prospecting

Set GoalsSet Goals

Establish daily, Establish daily, weekly and weekly and

monthly quotas for monthly quotas for acquiring new acquiring new

prospectsprospects


Set GoalsSet Goals

Establish a regular Establish a regular daily schedule for daily schedule for

conducting conducting prospecting prospecting activities.activities.

Allocate TimeAllocate Time


Set GoalsSet Goals

Track your results Track your results from using the from using the

different prospecting different prospecting methods.methods.

Keep RecordsKeep Records



Set GoalsSet Goals

EvaluateEvaluate

What is working for What is working for you? Compare you? Compare

results and use the results and use the methods that work methods that work

best for you.best for you.




Set GoalsSet Goals

EvaluateEvaluate

Develop confidence Develop confidence by knowing your by knowing your

products and products and believing that you believing that you

offer the best offer the best solutions.solutions.



Stay PositiveStay Positive

The Importance of Prospecting

• Prospecting, the initial stage, is necessary for several reasons: • Need to increase total sales.Need to increase total sales.

• Customers switch to other suppliers.Customers switch to other suppliers.• Customers’ businesses are taken over by another Customers’ businesses are taken over by another

company.company.• Customers have only a one-time need for the product.Customers have only a one-time need for the product.• Relationships with some customers deteriorate, and Relationships with some customers deteriorate, and

they stop buying from you.they stop buying from you.• Your buying contacts are promoted, demoted, Your buying contacts are promoted, demoted,

transferred, or fired, or they retire or resign. transferred, or fired, or they retire or resign. • Customers move out of your territory.Customers move out of your territory.

• Customers go out of business.Customers go out of business.• Customers die.Customers die.

Importance of Effective Prospecting

OneOneCustomerCustomer

100 100 LeadsLeads

Many LeadsMany Leads

Few QualifiedFew Qualified ProspectsProspects

Many Qualified Many Qualified ProspectsProspects

Few CustomersFew Customers

Suppose it takes 10 Suppose it takes 10 leads to generate leads to generate

one qualified one qualified prospectprospect

And suppose it And suppose it takes 10 qualified takes 10 qualified

prospects to prospects to generate one generate one

customercustomer

It will takeIt will take100 leads100 leads

to generateto generateone customerone customer

Importance of Effective Prospecting

OneOneCustomerCustomer

50 50 LeadsLeads

The better the lead generation method, the The better the lead generation method, the higher the proportion of qualified leads.higher the proportion of qualified leads.

The more accurate the qualifying process, the The more accurate the qualifying process, the higher the proportion of customers per higher the proportion of customers per qualified lead.qualified lead.

Qualifying the Prospect

• Moving from a “lead”, to a qualified prospect

• Lead - is just a name

• Prospect - researched for money, and authority, and desire.

• Qualified prospect - evaluated prospect along with personal information

Cultivate prospects who pass the MAD test:

oney

uthority

esire

Sources or Methods of Prospecting

• Why we lose customers• Customer’s company goes out of business• Competitor takes your customer• Customer moves or dies• Merger or downsizing• Customer-salesperson relationship deteriorates

• Referrals• Have person make the initial contact for you• Learn how to ask for a referral! • Why people don’t give referrals• Referrals tend to be horizontal

• Centers of Influence– Believes in you and what you are selling– Is influential with a significant number of

people– Is willing to give you names on a regular

basis– The names given to you are at least

partially qualified prospects

• Group Prospecting– Follow up with interested prospects– Trade shows, speaking engagements

Methods of ProspectingMethods of Prospecting

• Planned Cold Calling– At least one out of seven

will be receptive– Treat cold calls as a

supplement. Don’t neglect other techniques

– Preplan cold calls– Limit waiting - 15 minutes is

a good gauge!

– Remain enthusiastic


• Direct mail or fax– Prospects do read well-targeted direct mail– Mailing is only as good as the list– Sources of lists to consider:

• Membership rosters• City directories• Yellow pages• White pages• Religious groups• Past customers

– Create your own newsletter


• Joining Civic Groups– Carefully select the groups you join– Work for positive visibility– Set contact goals for each organization meeting– Maintain an information file on the contacts made in

each organization– Use “remeet” goals to help you develop closer

relationships with people– Use active listening to learn more about the financial

goals and needs of others– Look for appropriate opportunities for further

business-oriented discussions


• Networking - active cooperation, i.e. ‘tips’

– There are formal groups that you can join– Sharing information makes good sense

• Using Directories - Goldmines if used correctly• Moody’s Industrial Manual• Poor’s Register of Directors and Executives• The Dun and Bradstreet Reference Book• The Thomas Register of American Manufacturers• Contacts Influential


• Company Initiated Prospecting– Telemarketing Activities– Advertising Response

• Direct Mail• Newspaper

• Past Customers• Go over list of inactive accounts

• Develop and create a Web site• Streamline the sales process• Affiliate program marketing• Turn web leads into online sales


• Trade Shows


•Selecting the right trade show is criticalSelecting the right trade show is critical•On the spot sale versus lead generationOn the spot sale versus lead generation

•Pre-show training and post-show follow-upPre-show training and post-show follow-up•Display planning to get high visibilityDisplay planning to get high visibility

•Staffing the booth to handle informationStaffing the booth to handle information

• E-prospecting


Sales leadsSales leads

http://www.infousa.com/http://www.infousa.com/

http://www.business.com/search/rslt_default.asp?http://www.business.com/search/rslt_default.asp?r4=t&query=prospecting+sales+leadsr4=t&query=prospecting+sales+leads

http://www.zapdata.com/http://www.zapdata.com/

snowboarding trade magazinesnowboarding trade magazine

http://www.transworldsnowboarding.com/snow/snowbiz/http://www.transworldsnowboarding.com/snow/snowbiz/0,13010,,00.html0,13010,,00.html

Qualified Prospects . . .

Can benefit from the sales offeringCan benefit from the sales offering

Have the financial wherewithal to make the purchaseHave the financial wherewithal to make the purchase

Play an important role in the purchase decision processPlay an important role in the purchase decision process

Are eligible to buy based on a fit within the selling Are eligible to buy based on a fit within the selling strategystrategy

Are reasonably accessible and willing to consider the Are reasonably accessible and willing to consider the sales offeringsales offering

Can be added to the customer base at an acceptable Can be added to the customer base at an acceptable level of profitabilitylevel of profitability

ALWAYS ALWAYS IMPORTANT IMPORTANT TO CONVERT TO CONVERT

LEAD TO A LEAD TO A QUALIFIED QUALIFIED PROSPECTPROSPECT

Handling Objections• 2 Types of Objections

– Misunderstanding– Valid Objection

• An objection is simply a request for more information.

– Do not be afraid of the objection!

Valid Objections

• A valid objection is triggered by fear of making a wrong decision– Typically the last step in the

buying process– Welcome them as a sign that

they are getting ready to decide to move forward.

Handling Objections• Common Objections

– “Not enough time”– “Don’t have any money”– “I want to think about this”– “I need to talk this over with my spouse”

Objections

• People will always have concerns before they buy product or enroll.

• Concerns vary from person to person– “I don’t like to sell”– “I don’t have enough time”

Welcome Objections• Objections are way for a

prospect to express their desires

• Turn an objection into a objective– Restate, in a question form,

the objection in the form of an objective.

Objection/Objective Example

• “It takes too long to get the product”• “So, our objective is to get you the products

when you want them, correct?”


• “Your prices are too high.”• “So, you want to get proper value for your

money, right?”


• “I don’t have enough time”• “So, you want to make sure your time is used

wisely, in a way that you get the best return on investment of your time, correct?”


• “I don’t want to sell to my family and friends.”• “So, you want to maintain your relationships,

correct?”• “Yes”• “If you commit today, we can make sure you learn

how to maintain your relationships and build a business that enhances the relationships. That’s reasonable isn’t it?”


• “Is this a pyramid scheme?”• “So, your concern is that you are doing

something that is legitimate and lawful, correct?”

• “Yes”• “Do you know what a pyramid scheme

is?” ..and carry on..

We believe that objections are requests for more information.

• Encourage objections, especially the hidden or unspoken ones

• A person will not buy or enroll until the his concerns are satisfactorily handled.

If a person doesn’t buy or enroll then ask:

• “Is there anything else that concerns you?”

• “What else may be stopping you from moving ahead?”

Handling Objections1. Listen to the objection.2. Clarify it: “As I understand, you do like the marketing

plan and you think the products are great, so it’s the money that would keep you from starting right now?”

3. Identify with them: “I know how you feel…”4. Never argue5. Explain your answer6. Verify you cleared every objection thoroughly.

“Does this answer your question?” or “Does this take care of it?”

7. Close

Handling Objections

• Communication is 55% body language– LISTEN!

• Your prospect believes he is right. • Understand his point of view so you can overcome

objection.– PROVIDE PROOF!

• Deliver strong proof in a way that does not discredit the prospect in the process

– Tell a story– offer testimonial– do a demo– use data, ie average incomes.

Close• Close Quickly• Confirm their pain and the

intensity• Review benefits

– Freedom– work less-earn more– save pictures forever

• Primitive brain remembers beginning and end.

• Ask for feedback. – What do you think?

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