Prospecting – The Lifeblood of Selling

1. Prospecting – The Lifeblood of Selling Chapter 7

2. 7 Chapter 7-2

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 • Where to Find Prospects • Planning a Prospecting Strategy

4. Main Topics • Prospecting Methods • Prospecting Guidelines • 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 7-1: The Selling Process Has 10 Important Steps 1. Prospecting The sales process is a sequential series of actions 2. Preapproach/planning 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 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 7-2: 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 7-4: 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 7-5: The Processing System Within a Telemarketing Center

23. Exhibit 7-6: 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 7-7: 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 correctly during referral cycle • The preapproach contact phase • The presentation • Product delivery contact phase • Service and follow-up contact phase: Customer service

30. Exhibit 7-8: 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