Prospecting—The Lifeblood of Selling

1. Prospecting—The Lifeblood of Selling 6 Chapter

2. 6 Chapter

3. Main Topics • The Tree of Business Life: Prospecting • The Sales Process Has 10 Steps • Steps Before the Sales Presentation • Prospecting—The Lifeblood of Selling • The Leaking Bucket Customer Concept • Where to Find Prospects • Planning a Prospecting Strategy • Prospecting Methods • Prospecting Guidelines

4. Main Topics, cont... • The Referral Cycle • Call Reluctance Costs You Money! • Obtaining the Sales Interview • Wireless E-mail Helps You Keep in Contact and Prospect

5. The Tree of Business Life: Prospecting Guided by The Golden Rule,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 T T T Service Ethical T T T T T T T T Builds T r u e Relationships T C I

6. Exhibit 6-1: The Selling Process Has 10 Important Steps 1. Prospecting The sales process is a sequential series of actions 2. Preapproach 3. Approach 4. Presentation 5. Trial close 6. Determine objections 7. Meet objections 8. Trial close 9. Close 10. Follow up

7. 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 insurance • Real estate

8. Compensation for the Salesperson that Prospects is Often: • Based upon 100% commission – if you do not sell, you do not earn

9. Some Prospect, Some Do Not, cont… • Many organizations do not prospect • Examples are large consumer goods firms, such as General Mills* and Colgate* * products and associated images used for illustrative purposes only

10. 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

11. 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 • WOW! That is a challenge

12. Steps Before the Sales Presentation • Prospecting > appointment > planning • Rule of thumb • 40% preparation • 20% presentation • 40% follow-up

13. Exhibit 6-2: Before the Sales Presentation

14. Prospecting–The Lifeblood of Selling • Prospect – qualified person • Prospecting – Identifies potential customer • Lead – only know name

15. Prospecting–The Lifeblood of Selling • Qualified prospect is MAD • Money to buy? • Authority to buy? • Desire to buy? • Sales Prospecting Funnel • All leads and prospects must be considered and filtered through the MAD process before they become qualified prospects

16. 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

17. Where to Find Prospects • Sources may be varied or few • Persons selling different services and goods might not use the same sources

18. Planning a Prospecting Strategy • Prospecting requires a strategy • A skill that can be constantly improved

19. Exhibit 6-4: Prospecting Methods that Work!

20. Prospecting Methods • E-prospecting on the Web • Individuals • Organizations • Cold canvassing • Endless chain customer referral • Orphaned customers • Sales lead clubs

21. Prospecting Methods, cont… • Prospect lists • Become an expert – get published • Public exhibitions and demonstrations • Center of influence • Direct mail • Telephone and telemarketing • Observation • Networking

22. Exhibit 6-5: The Processing System Within a Telemarketing Center

23. Exhibit 6-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm

24. Prospecting Guidelines • Three criteria are: • Customize to each prospect • Concentrate on high potential customers fruit • Call back on no-buys • Always keep knocking on prospect’s and customer’s door to help them

25. 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

26. The Prospect Pool • Leads • Referrals • Orphans • Your customers

27. Exhibit 6-7: Components of the Prospect Pool

28. 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

29. The Referral Cycle, cont… • The secret is to ask professionally at each phase of the referral cycle • The preapproach contact phase • The presentation • Product delivery contact phase • Service and follow-up contact phase: customer service

30. Exhibit 6-8: The Referral Cycle: When to Ask for Referrals

31. 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

32. 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

33. 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

34. 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

35. Wireless E-Mail Helps you Keep in Contact and Prospect • Wireless E-mail helps keep the sales representative mobile.

36. Summary of Major Selling Issues • The sales process involves a series of actions beginning with prospecting for customers • Find prospects to contact • Obtain appointments • Plan the entire sales presentation

37. Summary of Major Selling Issues, cont… • Popular prospecting methods • Cold canvas • Endless chain methods • Public exhibitions and demonstrations • Locating centers of influence • Direct mailouts • Telephone and observation • Salesperson must develop ways of getting to see the prospect