Prospecting and Pre-approach Module 5
Prospecting The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salesperson’s market offering of products and services. Qualified Prospects Sales Leads Screening Procedures for Qualifying Leads
Importance of Effective Prospecting One Customer 100 Leads Many Leads Few Qualified Prospects Many Qualified Prospects Few Customers Suppose it takes 10 leads to generate one qualified prospect And suppose it takes 10 qualified prospects to generate one customer It will take 100 leads to generate one customer
Importance of Effective Prospecting One Customer 50 Leads The better the lead generation method, the higher the proportion of qualified leads. The more accurate the qualifying process, the higher the proportion of customers per qualified lead.
In-Class Exercise – Prospecting
Popular Prospecting Sources & Methods Personal Contact Observation Cold Canvassing Trade Shows Spotters Sales Seminars/Educational Forums
Popular Prospecting Sources & Methods Internal Sources Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide Web
Popular Prospecting Sources & Methods External Sources Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts
Turning Suspects/Leads Into Bona Fide Prospects Identify MAD Customers M oney to Buy A uthority to Buy D esire to Buy
Qualified Prospects... Can benefit from the sales offering Can benefit from the sales offering Have the financial wherewithal to make the purchase Have the financial wherewithal to make the purchase Play an important role in the purchase decision process Play an important role in the purchase decision process Are eligible to buy based on a fit within the selling strategy Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability Can be added to the customer base at an acceptable level of profitability
Nature and Importance of Qualification The nature of the qualifying task is different for various types of personal selling Salespeople must be resourceful and should devote time and effort to the search and qualification phase
Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish daily, weekly and monthly quotas for acquiring new prospects
Prospecting Plans are the Foundation for Effective Prospecting Set Goals Establish a regular daily schedule for conducting prospecting activities. Allocate Time
Prospecting Plans are the Foundation for Effective Prospecting Set Goals Track your results from using the different prospecting methods. Keep Records Allocate Time
Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate What is working for you? Compare results and use the methods that work best for you. Keep Records Allocate Time
Prospecting Plans are the Foundation for Effective Prospecting Set Goals Evaluate Develop confidence by knowing your products and believing that you offer the best solutions. Keep Records Allocate Time Stay Positive
Important Pre-Approach Information Examples include: Client name and pronunciation Risk/type of buying situation Communication style/profile of the buyer (may not be able to assess till several visits) What is the market position of the company Major competitor(s) of the company Industry condition/intelligence Challenges the organization may be facing Company characteristics – size, division, decision makers, etc.