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Prospecting – The Lifeblood of Selling

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2 Prospecting – The Lifeblood of Selling
Chapter 7 Prospecting – The Lifeblood of Selling McGraw-Hill/Irwin Fundamentals of Selling, 10/e Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

3 7 Chapter 7-3

4 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

5 Main Topics Prospecting Methods Prospecting Guidelines
The Referral Cycle Call Reluctance Costs You Money! Obtaining the Sales Interview Wireless Helps You Keep in Contact and Prospect

6 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 Ethical Service T T T T T T T T Builds T r u e Relationships T C I

7 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

8 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

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

10 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

11 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

12 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

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

14 Exhibit 7-2: Before the Sales Presentation

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

16 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

17 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

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

19 Planning a Prospecting Strategy
Prospecting requires a strategy A skill that can be constantly improved

20 Exhibit 7-4: Prospecting Methods that Work!

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

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

23 Exhibit 7-5: The Processing System Within a Telemarketing Center

24 Exhibit 7-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm

25 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

26 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

27 The Prospect Pool Leads Referrals Orphans Your customers

28 Exhibit 7-7: Components of the Prospect Pool

29 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

30 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

31 Exhibit 7-8: The Referral Cycle: When to Ask for Referrals

32 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

33 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

34 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

35 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

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

37 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

38 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

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