Sales Prospecting process ch. 5

• Attention and focus are raw materials for creativity and ingenuity.
• Sales prospecting requires creative problem-solving.

Sales Prospecting Facts

• 44% of salespeople quit trying to sell to a prospect after the first call.
• 24% quit after the second call.
• 14% quit after the third call.
• 12% quit after the fourth call.
• 94% quit by the fourth prospect call.
• 60% of sales are made after the fourth call.
• 94% don't give themselves a chance at 60% of prospective buyers.

Strategic Prospecting Process

• Strategic Prospecting - A process designed to identify, qualify, and prioritize sales opportunities to generate additional business.
• Prospecting - The first step in the sales process, which consists of identifying potential customers (PROSPECTS).
  • Goal of prospecting is to develop a database of likely customers (CRM Software) and systematically communicate in hopes of them becoming a customer.

Goal of Prospecting

• Generate new revenue.
• Meet sales quota.
• Develop the funnel of potential customers.
• Make up for client losses.
• Position you as a trusted advisor.
• Focus on the right accounts.

Sales Funnel/Pipeline

• A representation of trust-based sales and strategic prospecting in the form of a funnel.
  • The Sales Funnel has:
    • A start (lead and qualified prospect).
    • A middle (opportunity/presentation).
    • An end (proposal/sale).

Determining Sales Prospects:

• Sales leads or suspects: Organizations/individuals who might purchase the product/service from salesperson.
• Qualifying sales leads: Salesperson searches, collects, and analyzes information determining the prospect's likelihood of a sale.
• Sales Prospect: An individual/organization that has a need, budget, and authority to make the purchase decision.
• Ideal Customer Profile: The characteristics of a firm's best customers or the perfect customer.
• Strategic Prospecting Plan: A salesperson's plan for gathering qualified prospects.
• Tracking System: Part of the strategic prospecting plan that records comprehensive information about the prospect and methods used.

Keys to successful prospecting:

• Consistent prospecting helps ensure a solid client base.
• Client losses can be from competition, market/buying behavior changes or from dissatisfaction.

Prospecting Methods

• Cold Calling - Contacting a sales lead unannounced with little/no information.
• Social Selling - Leveraging social media to network and develop relationships.
• Referral - A name of a company or person given to the salesperson as a lead.
• Introductions - A variation of referral, salesperson asks the prospect or customer to prepare a letter to the potential customer
• Centers of Influence - Well-known and influential people who can help a salesperson prospect and gain.
• CRM System – Enters Prospects Names into the CRM System

Information to Gather

• Basic information about the buyer helps the salesperson understand the buyer from a personal perspective.
• Basic information about the company helps the salesperson determine the best questions.
• Information about the selling situation:
  • Includes type of purchase and motivation.
  • Current Supplier, buying process and available budget
• Log all information in the CRM, including all facts/details.

Sources of Information

• Online searches, online and print directories.
• Prospect Website.
• Social Media, Annual Reports, Trade and Business Press
• Professional Organizations, Company databases Contact with Prospect

Dealing with Rejection:

• Don't take it personally.
• Expect it.
• Be professional.
• Ask why.
• Send a last-minute proposal.
• Talk with your sales manager and teammates.
• Treat it as a necessary step.
• Be persistent, stick to routine, stay focused on the positives, and never give up.

Chapter 5 Summary

• Prospecting is extremely important to salespeople.
• Strategic prospecting is viewed as a sales funnel.
• Different methods for effective strategic prospecting have been developed.
• Plan helps salespeople improve their prospecting effectiveness.

Sales prospecting is a process to identify, qualify, and prioritize sales opportunities to generate additional business. The goal of prospecting is to develop a database of likely customers and systematically communicate with them, so they become paying customers. Only a small percentage of salespeople persist past the fourth call.