Sales Funnel Basics,

Lead Generation and

Prospecting

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may be copyrighted and extracted from books. It is being presented for
information only and the recipient or viewer must NOT use this for 43, Trans Indus
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Buyers follow their own buying cycle. We can’t change this but we
can seek to accelerate it and bias it towards my solution

How buyers buy

Recognition Consensus Recognition Evaluation Decision

Implement Value
of need to of need to of need for of to partner
changes realised
change change outside help options with me

How we can help them through the buying process

Highlight Help Focus on Influence Make it easy Deliver as Highlight

industry prospects benefits of decision to buy from promised Company’s
events to build outside help making us value-add
Share internal Effectively criteria Ask for a
reference consensus position Use pre- Reference
stories ourselves proposals
to clarify
thinking

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How we sell - The selling process
The selling process provides a similar framework for developing prospects and for
tracking and managing opportunities

How sellers sell consulting services and solutions

Target
Sell
Issues, Call and Develop Develop Present Close
Additional
Prospects & Qualify Strategy Offer Offer Sale
Work
Clients

Selling milestones

4. & 5. Pre-proposal
2. Qualified 3. Advanced 6. Proposal
1. Discussion requested/ 7. Delivery
Discussion opportunity submitted
submitted

Conversion probabilities:
5% 20% 40%/50%/60% 80/100%/Signed

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How we sell - Targeting important issues
We sell by identifying issues that are important to our potential clients and to which we can
offer attractive solutions

The prospecting process

Identify Define Calculate Define Define Schedule

target issues our service prospecting target prospecting time to
offering needs market approach make the
calls

Driven by: Identify the How much are Who would be Who do we Call
- industry combination of we willing to interested? know? Spark their
events our invest? Who might be Who can interest
capabilities How many willing to pay? provide us
- re-use of that best fits Ask for
client work calls do we Who has the with referrals? referrals
the identified need to make?
Identified from need money?
research

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Sales Funnel Terminology

Lead / Suspect / Opportunity Lead conversion ratio

• A potential customer who has been • Lead to prospect conversion
identified
Prospect Qualifying ratio
• A lead who has been contacted • Prospect to QP conversion
• Who has given an appointment Closing Ratio
• To whom an email or sales collateral • Number of qualified prospects you
has been sent
need to work on to close just one
Qualified Prospect opportunity
• Person who has been met • Typically depends on a sales person,
• Who fits the ideal customer profile NOT on the company
• Sales order value can be ascertained
only here Sales forecast
• Know and met influencer, decision • Sales order value of qualified
maker, coach prospects
Customer • This is not the same as your funnel
• Who has confirmed the sale value
• Has signed some legal document
• Has paid the advance

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Qualified Prospect

Does the prospect, and the prospect's company, match the profile of a
good fit for the sales rep's solutions?
Does the prospect have a need the sales rep's solutions can address
effectively?
Does the sales rep's company have a solution that is a fit to meet the
prospect's needs?
Does the contact have the ability and openness to make a change in a
reasonable time frame?
Is the prospect in a position to significantly influence, recommend or make
decisions?
Does the sales rep know the decision maker and the decision making
process?
Does the prospect have the budget or access to a budget for a solution to
the defined need?

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Sensitivity Analysis

Average Sale Value

• Total amount sale last year / total
number of sales
Amount you need to sell
• Amount set as personal goal
• Depends on the fixed salary and
your variable commission of the
sale

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Sales variables

Average sales order

• sell more per sale, you make more money, or can reduce the number of QP
per day
• Addition sales and services
Length of the sales cycle
• Need to have a judicious mix of large, medium and small sales

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The Numbers

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Implication

Improve the ratios Average sales order

• Depends on how intelligently you sell • Sell more per sale, you make
• Improve cold calling techniques more money, or can reduce the
• Find the QP data as soon as possible number of QP per day
• Additional sales and services
• Do not do wishful thinking / ego
• If sales cycle varies, need to
• Be disciplined / do your numbers have a judicious mix of large,
▪ Make your calls
▪ Move the prospect in the sales cycle medium and small sales
▪ Each day you miss, you double the number of
qualified leads required
Decrease sales cycle
• Use referrals
• Create self-qualifications
▪ People should call you / give you cards
• Decrease number of meetings
▪ Every meeting costs time
• Travel, waiting, meeting
▪ How many persons involved in the decision

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Time management

If a presentation goes beyond 40 minutes

• You are losing this sale (bored the prospect)
• You are losing another sale as you cut down on the number of sales per day
• Always aim for 20 minutes
▪ Add waiting time, social chit chat, interruptions = another 20minutes
▪ 20 minutes to set up and go to the next appointment
Appointments should be made at least 1 week in advance
• More slots open
• Preferably on a Monday
Calling vs appointments
• Call on Friday, set appointments for Monday to Friday
• Call 2 hours each day, maybe in between appointments
• Call half the time to set appointments
• The other half to generate referrals
▪ Set the call dates to referrers

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What can we do better

Project management What is your product

• What process • FAB
• What activities • USP
• What purpose How will you generate leads
• What collateral Who are your referrals
• What role
▪ How would the team be structured Why should the cold leads buy
• UBP 1
Monitoring
• What, how, who Why should the referrals refer
• UBP 2
RAID
• Contingency plan Why should the contacts listen
• UBP 3
What are your numbers
• UBP for coach, decision maker,
• Sales cycle
influencer
• Average sales value
Segmentation strategies
• Conversion ratios
What are the negotiating variables

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Lead Generation

Please do not reproduce without consulting the presenter. Some material

may be copyrighted and extracted from books. It is being presented for
information only and the recipient or viewer must NOT use this for 43, Trans Indus
commercial purposes unless the information is available in the public Basappanpalya, Tathaguni
Bangalore. 560062. INDIA
domain. www.chandra-kant.com
If you have just joined as a sales person

Use one year historical data to do If new territory and no data

the numbers analysis • Talk to marketing, product managers,
sales service, technical support and
• Your predecessor manager
• Your fellow sales people • Reason for creating this territory and
▪ Your manager may be able to help the expectations
you • Identify what needs the product
• Your own past data satisfies and what type of industries
need it
• Your competitor
• Based on size, location, end customer
• Your customer data or other segmentation
▪ Size of customer may indicate ▪ (See left)
• Sales cycle • Join a local networking body
• Sales value ▪ Talk to some potential customers
▪ Solution fit ▪ Talk to existing customers in another
• Different type of customers territory
• Different type of solutions ▪ Validate your and your companies
assumptions
• Give feedback and renegotiate your
numbers
• Every person you meet, get referrals

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Lead generation

Purpose
• to gain access into an account with
a contact who has decision-making
authority or is an influencer
Segmentation (different strategies)
• Geography
• Industry classification
• Line of business
• Solution aligned (if different
solutions)
• Size
▪ Total number of employees
▪ Number in specific departments
▪ Number of offices
▪ Revenue
▪ Expenditure / budgets
• Customer growth rate
• Purchase patterns (cyclic)
Define best-odds and poor-fits

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Lead generation
Define the top 5 best odds
Focus on top 2 for next 6 months
• No time to focus on 5 segments
• Need to learn, generate, convert, close
and support
• Identify the top prospects in the 2
segments
Identify lead generation activities
• Should fit as many segments and top
prospects
▪ Direct mail: requires tweaking for the
segments and sub-segments
• Target multiple contacts per company
Plan the campaign
• Typical response rate is 1% or less
• Multiple activities at the same client
▪ Keeps your profile high
• Sub-segment
Get the marketing guys involved
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Events
• Why should they come
• Time, location
• Competitors (shoo)
• Purpose should be clear
• webcasts
Cold Calling
• If need not identified by buyer,
difficult to take your calls
▪ First call becomes very important
• One person at a time
▪ Best use of your time?
• Difficult to find time
Referrals
• customers, prospects, partners
• Just ask: discuss best odds
▪ Give them qualification criteria
Campaign planning

Goal of campaign Project plan

• Awareness, how measure • What are the chunks
• Number of leads • Who is the owner
▪ Qualification criteria • What is the exit criteria
Target market / segment • What is the expected time period
Audience in the segment • What can go wrong
• What level of people • What is the critical path and what are
• What type of people the dependencies
What information do you want of
the people
What is your offer
• What problem are you addressing
• How will it solve the problem
Competition
What is the follow up action
What is the budget

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Lead generation

Centers of Influence (CoI) Disgruntled customers or prospects

• people who can lead you directly to who said no, or who went to another
prospects and sales vendor
• Banker, lawyer, barber, dealers Competition overflow
• A person who meets other persons Family, friends, acquaintances
as part of his profession
Vendors
• Can help pre-qualify
• Do quid-pro-quo Staff members
• Acknowledge leads and give hand Strangers in a plane?
written notes of thanks, personal Referred people
phone call
▪ Birthdays, anniversaries etc. Ask often
▪ Call cycle: talk more to those who Ask specifically
give more business
WHAT IS YOUR ELEVATOR PITCH
• Seek permission for reference
▪ Try to get a written endorsement (UBP)
▪ Or to give an initial call Track your referrals
• Reward them

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Lead Generation
Only by talking to our network can we uncover client needs that we have the capabilities to
meet
Prospecting in our networks
• All of us have a professional network
• People we know from former
employers, past projects, social
contacts, etc.
• Ask yourself:
▪ Who do I know that I haven’t spoken
to recently?
▪ What can I do to maintain contact
with people in my network?
▪ Would anyone else in Company be
interested in an introduction to my
contacts?
• Our network is a hugely valuable and
underused resource - Make that call
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Prospecting using references
• Prospecting is all about creating interest
• Most direct way to establish curiosity is to
use a reference
▪ explain how another person in the
same industry as the buyer, with the
same title, has already figured out the
solution to a problem the buyer is
likely to have.
"This is [name] with Company. We focus
on working with clients in [segment]. One
of the chief concerns that we are hearing
from other [CIOs] is their frustration with
[critical issue].
"We have been able to help our customers
deal with this issue and I would like an
opportunity to share with you how."
Lead generation

Join trade organisations Trade Shows

• Joining is not enough • Main aim is not brochure distribution
• Work in committees ... Waste
▪ Get assertive • Talk and qualify
▪ Make your contribution known ▪ Get referrals
• Get to know the leadership ▪ Don’t just get cards
▪ They know everyone else • Bring people inside
What about social service ▪ Have a space to sit and talk
organisations • Snack bar, rest rooms
▪ Share feedback
• Can meet a wide variety of people
and at different levels, even CEOs Seminars and workshops
Political party • You are the expert
▪ Enhances your image and credibility
Write
• Jointly with others can put you in
• Articles, blogs, books, letters to good company
editors
• Ask referrals to refer for a seminar
• Notes, cards
• Follow up with participants
• Newsletters

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More on referrals

Not just name, designation and Non-responding referrals

phone number • Refer back to the contact
• What is a good time to call • Get additional contact numbers
• Family, recent activity, problems • Find out if he is out of town or busy
▪ Do not reveal you know them • Chase by various means
▪ Don’t show off your relationship
• Keep contact informed
• If you get shown a business card,
• Tell prospect you need to get back to
copy every thing or take a photo
the contact
• Ask for a personal introduction, a
• Do not drop but call after 1-2 months
phone call or a letter
TARGET MULTIPLE CONTACTS IN
Following up
THE SAME COMPANY
• Keep your contact in the loop how
• People leave
the conversation went
▪ Every conversation / voicemail / • Each may have a different role
email: thank again • May help in going around obstacles
• If you send an email, cc the contact

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emails

The Opener -Subject + first 20 words Copy

Subject Line • Tone – serious or fun
• Ask a question • 40 words
• Make a list ▪ to pique their interest
▪ 5 reasons why… ▪ get them engaged
• Surprise your readers • Pain point
▪ Why I hate life… ▪ Acknowledge their current reality of
• Offer a discount emails and demand for time
▪ 5 % off if you register today
• WIIFM - benefit
• Personalization
▪ Mr / Ms X…and one of the above • Bullet for easy scanning
Email metrics • Proof read
• Sent • CTA
• Delivered • Make it mobile friendly
• Bounced
• Open rate
• Click rate
• Unsubscribe rate

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Example

Subject: Trade Show App I don’t care about your

Dear Gabbar: hopes

I hope you are having a great day!

translate all verbiage
My company XYZ provides online and mobile apps that provide attendees
with an opportunity to plan and connect for the conference before leaving for the
event! It's a way to create buzz, communicate with your attendees, network, schedule
meetings in advance, and exchange information.
Networking is important at events; however, we do have some clients that go
with just a basic app that strips all of the interactive features out of it. We can
accommodate a solution that is right for your event. We power lot similar conferences
of call to action
like yours and I guarantee you would find it beneficial.
To learn more visit our website http://xyz.com/videos and watch a short video.
Please let me know when we can arrange for a demonstration over the phone. Feel
free to call if you have any questions. My number is 603-555-1212.

Sincerely Yours,

Basanti

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Example

Subject: The Atlanta Conference

John,

You can reduce no-shows up to 50% by keeping attendees informed and

involved with our mobile app.

If you like, I can send you a brief overview of how the app works.

Jane Smith

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Example

Hey [first name],

I hope this email finds you well! I wanted to reach out because [explain how we
got their contact information and how we relate to them: talked to a colleague,
saw your company online, etc...].
[Name of Company] has a new platform that will help: (your team at)
[Organization Name]. [One sentence pitch of benefits). We do this by:
- Benefit/Feature 1
- Benefit/Feature 2
- Benefit/Feature 3 [optional]
Let's explore how [name of your software] can specifically help your
business. Are you available for a quick call [time and date].
Cheers,
Sig

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Convincers

Social Proof
• prospect sees proof that his colleagues
are receptive to your ideas – peer
pressure
Provide A Reason (Because I Said
So)
Include The Frog - humour
Choose Your Numbers Wisely
• Include digits in the subject line
• Use statistics and data
• Three is the magic number
Keep It Short and Simple
Use Their Name More Than Once
Be Specific

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