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9-1
Developing and Qualifying aProspect Base
Selling TodaySelling Today10th Edition
CH
AP
TE
R Manning and Reece
9
9-2
Learning ObjectivesLearning Objectives
• Discuss the importance of developing a prospect base
• Identify and assess important sources of prospects
• Describe criteria for qualifying prospects
• Explain common methods of organizing prospect information
9-3
Learning ObjectivesLearning Objectives
• Name some characteristics that are important to learn about customers as individuals and business representatives
• Describe the steps in developing a prospecting and sales forecasting plan
9-4
Prospect, Prospecting, and Prospect Base Defined
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
9-5
Importance of ProspectingImportance 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
9-6
Girard’s Ferris Wheel—SupplyGirard’s Ferris Wheel—Supply
FIGURE 9.1
9-7
Girard’s Ferris Wheel—LossGirard’s Ferris Wheel—Loss
FIGURE 9.1
CONTINUED
9-8
Prospecting Requires Planning
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
9-9
ReferralsReferrals
• 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
9-10
Hancock’sLead
Generation
Hancock’sLead
Generation
9-11
Business Network InternationalBusiness Network International
Visit the world’s largest referral organization
www.bni.com
9-12
DirectoriesDirectories
• 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
9-13
Thomas RegisterThomas Register
9-14
Trade Shows/PublicationsTrade 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
9-15
TelemarketingTelemarketing
• 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 leadsgenerated by other methods
• To conduct follow-ups
9-16
Direct Response andSales Letters
Direct Response andSales 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
9-17
WebsiteWebsite
• 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 e-mail lists
9-18
Computerized DatabasesComputerized 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 www.infoUSA.com
9-19
Computerized DatabasesComputerized 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
9-20
Cold CallingCold 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
9-21
NetworkingNetworking
• 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
9-22
Three Types of NetworksThree Types of Networks
FIGURE 9.2
9-23
Educational SeminarsEducational 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
9-24
Non-Sales EmployeesNon-Sales Employees
• Non-sales personnel can be valued source of leads
• Prospecting not necessarilyexclusive task of sales force
• Non-sales personnel oftenneed training and incentives
9-25
Combination ApproachesCombination 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
9-26
Discussion QuestionsDiscussion Questions
• If you were selling ACT! contact management software, how might you develop a prospect list?
• If you were a personal investor, how might you develop a prospect list?
• If you worked for an international shipping company, how might you develop a prospect list?
9-27
Qualifying ProspectsQualifying 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?
9-28
Organizing Prospect Information
Organizing Prospect Information
• Prospect as an individual
• Prospect as a business representative
9-29
Prospect Information
Prospect Information
Harvey Mackay suggests 66-question customer profile.
See it at:
mackay.com
9-30
Prospecting and Sales Forecasting Plans
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