Chapter Five

Prospecting and Pre-approach

Learning Objectives

1. Explain strategic prospecting. 2. Discuss why prospecting can be a challenging task for a salesperson. 3. Explain where salespeople find prospects. 4. Understand the importance of gathering and studying precall information.

Setting the Stage

Using Questions to Qualify Potential Customers
1. What are the two categories Mike Ciccheto uses to organize his prospects? 2. Why does Mike categorize his prospects?

Why Buyers Wont See Salespeople

1. 2. 3. 4. They may have never heard of the salespersons firm. They may have no need; they just bought the product category. The buyer may have their own deadlines on other issues. Buyers are constantly getting calls from salespeople and do not have the time to see them all. Gatekeepers in any organization screen their bosses calls and are often curt and even rude.

5.

Prospecting
Sales Leads Screening Procedures for Qualifying Leads

Qualified Prospects

The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salespersons market offering of products and services.

Popular Prospecting Sources & Methods

Personal Contact

Internal Sources
Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide Web

External Sources

Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts

Observation Cold Canvassing Trade Shows Bird Dogs (Spotters

Qualified Prospects . . .

Can benefit from the sales offering Have the financial wherewithal to
make the purchase

Play an important role in the

purchase decision process

Qualified Prospects . . .
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

Importance of Effective Prospecting

Suppose it takes 10 leads to generate one qualified prospect And suppose it takes 10 qualified prospects to generate one customer 100 Leads

You would need 100 leads to generate one customer. One Customer

Importance of Effective Prospecting

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. Improving the lead generation method so that 10 leads generates two qualified customers means you will need only 50 leads to One generate one customer. Customer 50 Leads

Gathering Precall Information: The Prospect

The prospects name and title

Correct spelling and pronunciation can be gathered by asking the receptionist or secretary or gatekeeper to verify information.

Gathering Precall Information: The Prospect

Is this prospect willing to take risks? Are they confident with their decision making?

May have to ask the prospect

Gathering Precall Information: The Prospect

Is the buyer involved in their community? Do they belong to clubs or professional organizations? Observe club or organizational honors displayed in the office.

Gathering Precall Information: The Prospect

Does the prospect have hobbies or interests they are proud of?

Observation of office.

Gathering Precall Information: The Prospect

What is the prospects personality type? Easy going? All business?

Observation and experience with buyer.

Gathering Precall Information: The Prospect

Where did this prospect grow up? Where were they educated?

Look for diplomas. Ask.

Gathering Precall Information: The Prospects Organization

What type of business are we dealing with?

Can be gathered from a directory and company web site.

Gathering Precall Information: The Prospects Organization

To what market does the company sell? Who are its primary competitors? What does the company make & sell? Annual reports and company web site.

Gathering Precall Information: The Prospects Organization

Who and how many vendors does the prospect presently buy from? How much and how long have they been purchasing from their supplier(s)? What challenges is the organization facing?

Salesperson may have to ask for this information.