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CHAPTER. 9. Developing and Qualifying a Prospect Base. Prospecting. Prospecting = Identifying potential customers Prospect = Potential customer that meets the qualification criteria established by your company Prospect base = Made up of current customers and potential customers.

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  1. CHAPTER 9 Developing and Qualifying a Prospect Base

  2. Prospecting Prospecting = Identifying potential customers Prospect = Potential customer that meets the qualification criteria established by your company Prospect base = Made up of current customers and potential customers

  3. Importance of Prospecting • Every salesperson must cope with customer attrition • Average company may lose 15 to 20% of customer base every year

  4. Girard’s Ferris Wheel 9.1 FIGURE

  5. Prospecting Requires Planning Increase number of people who board the Ferris wheel Improve the quality of prospects Shorten sales cycle by determining which prospects are “qualified” Prospecting plans must be assessed often

  6. Sources of Prospects Referrals Centers of influence Directories Trade publications Trade shows and special events Telemarketing and email Direct-response advertising and sales letters Websites Computerized databases Cold calling Networking Educational seminars Prospecting by non-sales employees

  7. Referrals Prospect recommended by current satisfied customer or one familiar with product or service Endless chain = Ask contact who else could benefit from product Referral letters and cards Referral organizations = Facilitate networking Centers of influence

  8. Directories Hundreds of business and industrial directories are available. Many major trade associations publish directories. Be sure to use current copy or edition, because prospects shift firms; track people and companies.

  9. Popular Directories Middle Market Directory www.dnb.com TrackAmerica www.trackamerica.com Standard & Poor’s Corporation Records Service www.spcglobal.com Thomas Register of American Manufacturers www.thomasregister.com Polk City Directory www.citydirectory.com The Encyclopedia of Associations www.gale.com

  10. Trade Shows and Publications Trade shows and conventions Trade publications: Each industry has trade publications Trade associations: Join to gain access to potential buyers

  11. Telemarketing and Emails Telemarketing Identify buyers Generate contact lists for sales staff Qualify prospects Verify sales leads generated by other methods Conduct follow-ups Email marketing can be effective and productive if properly done.

  12. Direct Response and Sales Letters 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

  13. Websites Websites provide a cost-effective way for sales professionals to: Project personal image Provide additional information Generate leads from visitors to site Present product information Establish email lists

  14. Computer Databases • Systematically collect sales information • Match product features with needs of customers • Generate leads • Obtain prospect selection information for different market segments See the website

  15. Cold Calling Calling prospects without referrals New salespeople rely on this method to build prospect base Must be strategically planned Prelude to in-person appointment Way to introduce yourself and company to a prospect

  16. Networking Making and profiting from personal connections Networking guidelines Meet as many people as you can Tell them what you do Do not do business while networking Offer business card Edit contacts and conduct follow-ups

  17. Three Types of Networks 9.2 FIGURE

  18. Networking: LinkedIn • Designed for business people and professionals • Builds network of business contacts • Generates sales leads and contacts See the website

  19. Educational Seminars Provide opportunity to showcase product without pressure to buy Require extensive preparation Start value-added process Attend or be present at industry-sponsored seminars or offer your own

  20. Non-Sales Employees Non-sales personnel can be valuable source of leads Prospecting not necessarily exclusive task of sales force Non-sales personnel oftenneed training and incentives

  21. Combination Approaches Salespeople generally rely on combination of prospecting methods. Some methods have higher yield than others. Important to use CRM technology to help maximize efficiency.

  22. Qualifying Prospects Basic questions: Does the prospect need my product? Does the prospect have the authority to buy my product? Does the prospect have the financial resources to buy my product? Does the prospect have the willingness to buy my product?

  23. Collecting and Organizing Prospect Information Sales data can be collected and organized into Customer Relationship Management (CRM) systems. Examples of popular applications: Salesforce.com Oracle NetSuite Microsoft Harvey Mackay suggests a 66-question customer profile. See it at: www.harveymackay.com

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