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Chapter

ProspectingThe Lifeblood
of Selling

McGraw-Hill/Irwin
ABCs of Selling, 10/e

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reser

Main Topics

The Tree of Business Life: Prospecting


The Sales Process Has 10 Steps
Steps Before the Sales Presentation
ProspectingThe Lifeblood of Selling
The Leaking Bucket Customer Concept
Where to Find Prospects
Planning a Prospecting Strategy
Prospecting Methods
Prospecting Guidelines
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Main Topics, cont...

The Referral Cycle


Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless E-mail Helps You Keep in Contact and
Prospect

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The Tree of Business Life:


Prospecting

True

Et
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ca
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ce
rv i
Se

T
T T
T T TT
T T T T
Builds

Relationships

Guided by The Golden


Rule, 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

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Exhibit 6-1: The Selling Process Has


10 Important Steps
The sales process is a
sequential series of
actions

1. Prospecting
2. Preapproach
3. Approach
4. Presentation
5. Trial close
6. Determine objections
7. Meet objections
8. Trial close
9. Close
10. Follow up
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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 insurance
Real estate

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Some Prospect, Some Do Not, cont

Many organizations do not prospect


Examples are large consumer goods firms, such
as General Mills* and Colgate*

* products and associated images used for illustrative purposes only


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Compensation for the Salesperson


that Prospects is Sometimes:

Based upon 100% commission if you do not sell,


you do not earn

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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 lead
Converts the lead into a prospect
Sells one day, and
Sells in the future too

WOW! That is a challenge

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Steps Before the Sales Presentation

Prospecting > Appointment > Planning


Rule of thumb
40% preparation
20% presentation
40% follow-up

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Exhibit 6-2: Before the Sales Presentation

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ProspectingThe Lifeblood of Selling

Prospecting identifies potential


customer

Lead name of a person or


organization (also referred to as a
suspect)

Prospect qualified person or


organization
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Prospecting The Lifeblood of Selling

Prospecting identifies potential customers


Lead might be a prospect
Prospect qualified person

Is prospect MAD? Does he or she have:

Q1. Money to buy?


Q2. Authority to
buy? Q3. Desire to
buy?

Then, prospect is Qualified

ProspectingThe Lifeblood of Selling

Sales Prospecting Funnel

All leads and prospects must be considered and filtered


through the MAD process before they become qualified
prospects

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The Leaking Bucket Customer


Concept

All salespeople lose X amount of sales and


customers per year. This is illustrated in the
Leaking Bucket Customer Concept:

Customers come into the top and leave through a hole


in the bottom

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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 6-4: Prospecting Methods that


Work!

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Prospecting Methods

E-prospecting on the Web


Individuals
Organizations

(1)Cold Canvassing law of averages


(2)Endless Chain customer referral

Customers and customer referrals best sources of


future sales

(3)Orphaned Customers
(4)Sales Lead Clubs
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Prospecting Methods, cont

Prospect Lists trade pubs, list-selling firms


Become an Expert get published
(5)Public Exhibitions and Demonstrations
(6)Center of Influence
Direct Mail
(7)Telephone and Telemarketing
Observation
(8)Networking (center-of-influence people)
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Exhibit 6-5: The Processing System


Within a Telemarketing Center

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Exhibit 6-6: 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 prospects and


customers door to help them

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Referrals Are Used in Most


Prospecting Methods

Eight of the twelve popular prospecting


methods directly ask for referrals.
Referrals can be directly used in:
Cold canvassing
Endless chain customer referrals
Orphaned customers
Sales lead clubs
Public exhibitions and demonstrations
Center of influence
Telephone
Networking

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The Prospect Pool

Leads
Referrals
Orphans
Your customers

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Exhibit 6-7: Components of the


Prospect Pool

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The Prospect Pool

Leads know very little or nothing about


Referrals learned from referrer
Orphans company records
Your customers most important prospects

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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 sale
Sell the product to person
Obtain prospect name(s) from person

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Exhibit 6-8: The Referral Cycle:


When to Ask for Referrals

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The Referral Cycle cont

The secret is to ask correctly during referral


cycle

The preapproach contact phase


Mention personal contact

The presentation
Build rapport (high-context cultures), explain agenda

Product delivery contact phase


Service and follow-up contact phase customer
service

Ongoing opportunities to maintain contact with customer

Dont mistreat the referral


Be professional
Follow through on what you have told referral

Dont 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
Call reluctance keeps you from:
Helping others
Earning what youre worth

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Obtaining the Sales Interview

Key factor in selling process is obtaining a sales


interview
The benefits of appointment making
Telephone appointment
Personally making the appointment
Believe in yourself
Develop friends in the prospects firm
Call at the right time on the right person
Do not waste time waiting

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The Telephone Appointment

Plan and write down what you want to say


Clearly identify yourself and your company
State the purpose of your call and outline how
prospect may benefit from the interview
Prepare brief sales message stressing benefits over
features and only enough info to stimulate interest
Do not take no for and answer be persistent
Ask for an interview so you can further explain
benefits
Phrase your appointment request as a question
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Wireless E-Mail Helps you Keep in


Contact and Prospect

Wireless E-mail helps keep the sales


representative mobile.

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Summary of Major Selling Issues

The sales process involves a series of actions


beginning with prospecting for customers
Find prospects to contact
Obtain appointments
Plan the entire sales presentation

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Summary of Major Selling Issues,


cont

Popular prospecting methods


Cold canvas
Endless chain methods
Public exhibitions and demonstrations
Locating centers of influence
Direct mailouts
Telephone and observation

Salesperson must develop ways of getting to see


the prospect

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