Effective Prospect Development Strategies for Sales Success

1. 9TH EDITION Selling Today Manning and Reece CHAPTER 8 DEVELOPING AND QUALIFYING A PROSPECT BASE

2. LEARNING OBJECTIVES-1 • Discuss importance of developing a prospect base • Identify and assess important sources of prospects • Describe criteria for qualifying prospects • Explain common methods of organizing prospect information

3. LEARNING OBJECTIVES-2 • Name characteristics important to learn about customers as both individuals and business representatives • Describe the steps in developing a prospecting and sales forecasting plan

4. PROSPECT AND PROSPECTING DEFINED PROSPECT—A potential customer that meets the qualification criteria established by your company PROSPECTING—Identifying potential customers

5. IMPORTANCE OF PROSPECTING • Every salesperson must cope with customer attrition --Customers move, firms go out of business, sales lost to competition --Average company may lose 15-20% of customer base every year

6. GIRARD’S FERRIS WHEEL—SUPPLY P REFERRALS FRIENDS DIRECTORIES TRADE SHOWS WEBSITES/DATABASES COLD CALLING NETWORKING P P P P See Figure 8.1

7. GIRARD’S FERRIS WHEEL—LOSS RELATIONSHIP FAILS BUSINESS FAILS BUYS FROM ANOTHER MERGER/ACQUIRED CUSTOMER MOVES DEATH OF CUSTOMER ONE TIME PURCHASER TECH CAUSES CHANGE P P P P P See Figure 8.1

8. PROSPECTING REQUIRES PLANNING • INCREASE NUMBER OF PEOPLE WHO BOARD FERRIS WHEEL • IMPROVE THE QUALITY OF PROSPECTS • SHORTEN SALES CYCLE BY DETERMINING WHICH PROSPECTS ARE “QUALIFIED”

9. REFERRALS • Prospect recommended–by current satisfied customer or one familiar with product or service • Endless chain–ask contact who else could benefit from product • Friends, family members, centers of influence–a person may not make decision but has influence on those who do…opinion leaders

10. DIRECTORIES/LISTS • Hundreds of business and industrial directories available • Each major trade association usually publishes directory • Be sure to use current copy or edition as prospects shift firms…track people and companies

11. THOMAS REGISTER

12. APPLICATION: NINTENDO In late 2002, Nintendo added a unique web-based campaign to its list to announce new game. Involved six e-mails. 1. Tease: It’s coming soon 2. Arrival: It’s here 3. Survey: Have you played? 4. Site: Updated site available 5. Puzzle: Solve this one 6. Bidding Auction: Here’s add-on Normally list receives 1-2 monthly contacts. This worked because relevant info presented at each step. Not in text. Source clickz.com.

13. TRADE SHOWS/PUBLICATIONS • Trade shows and conventions – your company may have a booth at key trade shows/expositions • Trade publications–each industry has trade publications that sales professionals need to read • Join Trade Associations –many salespersons join trade associations to gain access to potential buyers

14. APPLICATION: TRADE SHOWS • Thousands of manufacturers, buyers, and sellers attend the Consumer Electronics Show each year • Working or attending such trade events provides great opportunities for prospecting, qualifying, referrals, networking, and actual sales

15. TELEMARKETING • Telemarketing – employs phone outreach to accomplish many objectives --to identify buyers and generate contact lists for sales staff --to qualify prospects --to verify sales leads generated by other methods --to conduct follow-ups

16. DIRECT RESPONSE • Direct response advertising-often features inquiry cards or information requests via mail or telephone • Sales Letters—send sales letters to decision makers, then follow up

17. WEBSITE • Websites –provide cost-effective way for sales professionals to --project personal image --provide additional information --generate leads from visitors to site --present product information --establish e-mail lists

18. DATABASES • In-house databases –your firm may already have a comprehensive database…sometimes referred to as the “house list” with details on customers, purchase patterns • List sources—wide range of precise lists available from variety of sources --list brokerage firms, associations, governmental records, related but not directly competitive businesses

19. APPLICATION: DATABASES • Purchasing databases or lists can be costly…price usually set on cost-per- thousand names • Not all relevant databases are equal…some “pull” better than others • Pull is the percentage of the list resulting in qualified prospects or actual sales

20. COLD CALLING • Simply calling prospects without referrals --new salespeople rely on these as they haven’t built referral base --must be strategically planned --prelude to in-person appointment

21. NETWORKING • Making and profiting from personal connections • Networking guidelines --Meet as many people as you can --Tell them what you do --Don’t do business while networking --Offer business card --Edit contacts and conduct follow-ups

22. EDUCATIONAL SEMINARS • Provides opportunity to showcase product without pressuring to buy • Requires extensive preparation • Starts value-added process • Can attend or present at industry- sponsored seminars or offer your own

23. NON-SALES EMPLOYEES • Non-sales personnel can be valued source of leads • Prospecting not necessarily exclusive task of sales force • Non-sales personnel often need training and incentives

24. COMBINATION APPROACHES • Salespersons generally rely on combination of prospecting methods • Some methods have higher yield than others • Important to use CRM technology to help maximize efficiency

25. QUALIFYING PROSPECTS • KEY TIME-SAVING PROCESS • Does prospect need my product? • Can prospect make buying decision? • Can prospect pay for purchase? • Can anyone close sale? Is sale realistically possible?

26. ORGANIZING PROSPECT INFORMATION • PROSPECT AS INDIVIDUAL • PROSPECT AS BUSINESS REPRESENTATIVE

27. PROSPECTING AND SALESFORECASTING PLANS • IMPORTANT TO BALANCE TIME AND ORGANIZE CONTACTS • Prepare a list of prospects • Forecast potential sales volume for each new account, by product • Carefully plan the sales route to minimize time and cost Last slide Chapter 8.