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Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling
Prospecting—The Lifeblood of Prospecting—The Lifeblood of SellingSelling
Chapter
Chapter
7
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Chapter
Chapter
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Main TopicsMain TopicsMain TopicsMain Topics
The Tree of Business Life: ProspectingThe Sales Process Has 10 Steps
Steps Before the Sales PresentationProspecting—The Lifeblood of Selling
Where to Find ProspectsPlanning a Prospecting Strategy
Chapter
Chapter
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Main TopicsMain TopicsMain TopicsMain Topics
Prospecting MethodsProspecting Guidelines
The Referral CycleCall Reluctance Costs You Money!
Obtaining the Sales InterviewWireless E-mail Helps You Keep in Contact and Prospect
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The Tree of Business Life: Prospecting
Guided by The Golden The Golden RuleRule, 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
IT C
Ethi
cal Service
Builds
T r
u e
Relationships
TT T
T T T TT T T T
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Exhibit 7-1: The Selling Process Has 10 Important Steps
10. Follow-up10. Follow-up
9. Close9. Close
8. Trial close8. Trial close
7. Meet objections7. Meet objections
6. Determine objections6. Determine objections
5. Trial close5. Trial close
4. Presentation4. Presentation
3. Approach3. Approach
2. Preapproach/planning2. Preapproach/planning
1. Prospecting1. ProspectingThe sales process is a sequential series of actions
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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 insuranceReal estate
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Compensation for the Salesperson that Prospects is Often:
Based upon 100% commission – if you do not sell, you do not earn
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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
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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
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The Prospector Has the Most Challenging Sales Career
This is the “order getter” who:Finds a leadConverts the lead into a prospectSells one day, andSells in the future too
WOW! That is a challenge
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Prospecting–The Lifeblood of Selling
Qualified prospect is MADMoney to buy?Authority to buy?Desire to buy?
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Exhibit 7-2: Before the Sales Presentation
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Steps Before the Sales Presentation
Prospecting > appointment > planning Rule of thumb
40% preparation20% presentation40% follow-up
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Prospecting–The Lifeblood of Selling
Prospect – qualified person Prospecting – Identifies potential customer Lead – only know name
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Where to Find Prospects
Sources may be varied or few Persons selling different services and goods
might not use the same sources
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Planning a Prospecting Strategy
Prospecting requires a strategy A skill that can be constantly improved
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Exhibit 7-4: Prospecting Methods that Work!
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Prospecting Methods
E-prospecting on the Web IndividualsOrganizations
Cold canvassing Endless chain – customer referral Orphaned customers Sales lead clubs
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Prospecting Methods, cont…
Prospect lists Become an expert – get published Public exhibitions and demonstrations Center of influence Direct mail Telephone and telemarketing Observation Networking
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Exhibit 7-5: The Processing System Within a Telemarketing Center
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Exhibit 7-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm
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Prospecting Guidelines
Three criteria are:1.Customize to each prospect
2.Concentrate on high potential customers fruit
3.Call back on no-buys
Always keep knocking on prospect’s and customer’s door to help them
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Referrals Are Used in Most
Prospecting Methods
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The Prospect Pool
Leads Referrals Orphans Your customers
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Exhibit 7-7: Components of the Prospect Pool
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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 saleSell the product to personObtain prospect name(s) from person
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The Referral Cycle, cont…
The secret is to ask correctly during referral cycleThe preapproach contact phaseThe presentation Product delivery contact phase
Service and follow-up contact phase: Customer service
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Exhibit 7-8: The Referral Cycle: When to Ask for Referrals
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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
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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
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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
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The 12 Faces of Call Reluctance
Think you might suffer from call reluctance? See if you fit 1 of the 12 classic types
identified by researchers George Dudley and Shannon Goodson (they are listed in order from most common to least common)
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The 12 Faces of Call Reluctance, cont..
1. Yielder - Fears intruding on others or being pushy
2. Overpreparer - Overanalyzes, underacts
3. Emotionally unemancipated - Fears loss of family approval, resists mixing business and family
4. Separationist - Fears loss of friends, resists prospecting among personal friends
5. Hyper-pro - Obsessed with image, fears being humiliated
6. Role rejecter - Ashamed to be in sales
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7. Socially self-conscious - Fears intruding on others or being pushy. Intimidated by upmarket customers.
8. Doomsayer - Worries, won’t take risks
9. Telephobic - Fears using the telephone for prospecting or selling
10. Stage fright - Fears group presentations
11. Referral aversions - Fears disturbing business or client relationships
12. Oppositional reflex - Rebuffs attempts to be coached
The 12 Faces of Call Reluctance, cont…
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The 12 Faces of Call Reluctance: How to Conquer the Fear
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Exhibit 7-9: The 12 Faces of Call Reluctance: How to Conquer the Fear
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Obtaining the Sales Interview
Key factor in selling process is obtaining a sales interview
The benefits of appointment makingTelephone appointmentPersonally making the appointment
Believe in yourselfDevelop friends in the prospect’s firmCall at the right time on the right personDo not waste time waiting
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Summary of Major Selling Issues
The sales process involves a series of actions beginning with prospecting for customersFind prospects to contactObtain appointmentsPlan the entire sales presentation
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Summary of Major Selling Issues, cont…
Popular prospecting methodsCold canvasEndless chain methodsPublic exhibitions and demonstrationsLocating centers of influenceDirect mailoutsTelephone and observation
Salesperson must develop ways of getting to see the prospect