CHAPTER 5

Strategic Prospecting and Pre-approach

The Strategic Prospecting Process

A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers.

Sales Funnel orPipeline: A representationof the trust-based sales process and strategic sales prospecting process.

Strategic Prospecting Process

Sales Leads or Suspects• Generated from Internal or External

Sources• Lead Generation Methods Should be

Managed

Qualifying Process• Need?• Financial Resources• Authority to Make Purchase Decision

Sales Prospect• Prioritize Prospect List• Initiate Pre-Call Planning

Ideal Customer Profile: The characteristics of a firm’s best customers or the perfect customer.

The Importance andChallenges of Prospecting

Customer-bases are not permanent, salespeople may lose customers due to: Low satisfaction Competition Economic fluctuation Other forms of attrition

The prospecting process is can be long It may take weeks to replace a lost customer

with a new one Revenue streams can fluctuate if “pipeline” isn’t managed

Prospecting isn’t easy and often includes a lot of rejection

IDENTIFYING LEADS

In-Class Exercise – Prospecting

Turning Suspects/Leads Into Bona Fide Prospects

Identify MAD Customers

Money to Buy

Authority to Buy

Desire to Buy

Qualified Prospects . . .

Can benefit from the sales offering

Have the financial wherewithal to make the purchase

Play (individual) an important role in the purchase decision process

Are eligible to buy based on a fit within the selling strategy

Are reasonably accessible and willing to consider the sales offering

Can be added to the customer base at an acceptable level of profitability

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

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

Developing a Strategic Prospecting Plan

Important Pre-Approach Information

Examples include:Client name and pronunciationRisk/type of buying situationCommunication style/profile of the buyer (may not

be able to assess till several visits)What is the market position of the companyMajor competitor(s) of the companyIndustry condition/intelligenceChallenges the organization may be facingCompany characteristics – size, division, decision

makers, etc.

CASE: STRONG POINT FINANCIAL SERVICES

In-Class Exercise