1. Developing and Qualifying a Prospect Base
Concepts and Practices

2. Prospect, Prospecting, and Prospect Base Defined
Prospect: a potential customer that meets the qualification criteria established by your company
Prospecting: identifying potential customers
Prospect base: is made up of current customers and potential customers

3. 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 to 20% of customer base every year

4. Girard’s Ferris Wheel—Supply
FIGURE
9.1

5. Girard’s Ferris Wheel—Loss
FIGURE
9.1
CONTINUED

6. 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 monitored continuously for effectiveness

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 organizations: facilitate networking
Friends, family members, centers of influence: a person may not make decision but has influence on those who do opinion leaders

8. Hancock’s Lead Generation

9. Business Network International
Visit the world’s largest referral organization

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

11. Thomas Register

12. 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

13. Telemarketing
Telemarketing: the practice of marketing goods and services through telephone contact
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

14. 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

15. 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 lists

16. Computerized 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, and so forth
List sources: wide range of precise lists available from variety of sources
See

17. Computerized 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

18. 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
A way to introduce yourself and your company to a prospect

19. 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

20. Three Types of Networks
FIGURE
9.2

21. Educational Seminars
Provide opportunity to showcase product without pressuring to buy
Require extensive preparation
Start value-added process
Can attend or present at industry sponsored seminars or offer your own

22. 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

23. 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

24. Qualifying Prospects Key time-saving criteria:
Does the prospect need my product?
Can prospect make the buying decision?
Can prospect pay for the purchase?
Will anyone close the sale?

25. Organizing Prospect Information
Prospect as an individual
Prospect as a business representative

26. Prospect Information
Harvey Mackay suggests 66- question customer profile.
See it at:
mackay.com

27. Prospecting and Sales Forecasting 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