Chapter 6

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 Prospecting:
The Lifeblood of Selling

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 Learning Objectives

6-1:  Define the sales process, and list and describe its 10 steps in
the correct sequence. 
6-2: State why it is important to prospect. 
6-3: Describe the various prospecting methods. 
6-4: Ask for a referral anywhere during the referral cycle. 
6-5:  Make an appointment with a prospect or customer in
person or by telephone or by e-mail.

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 The Core Principles: Prospecting

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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 The Selling Process Has
10 Important Steps
Our focus is on prospecting The sales process is a
sequential series of actions
1. Prospect/Customer
2. Preapproach/Planning
3. Approach
4. Presentation
5. Trial close
6. Determine objections
7. Meet objections
8. Trial close
9. Close
10. Follow-up and Service
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 Prospecting

First step in the selling

process
What is a prospect:
• Qualified person or
organization that has
the potential to buy
your good or service.

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 Prospecting: Lifeblood of Sales

Why is prospecting
important:
• To increase sales
• To replace customers
that will be lost over
time

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 Why Is Prospecting Important To Business? 1

Developing new customers creates revenue

• Firms needs to sell products and services to create
revenue
• Revenue funds firm’s strategies and activities
• Ongoing expenses in conducting business
• Pays for salaries of everyone in firm

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 Prospecting Process: The Basics 1

1. Lead generation: Developing a list of potential customers

• Lead: Person/firm with potential to become a customer

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 Sales Prospecting Funnel
All leads and prospects must be considered and filtered through the
funneling process before they become qualified prospects

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 2. Qualifying a lead: Steps salesperson uses to evaluate
lead
Salesperson uses predefined criteria to determine:
Does lead have the money to buy
Does lead have the authority to buy
Does the lead have the desire to buy

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 Prospecting Process: The Basics 2

Lead Qualification and Scoring:

• Lead scoring system: Give Grades to each lead based
on range of criteria
• Helps salespeople understand which leads becomes
prospects
• Categorizes prospects into groups

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 Where to Find Prospects

Sources may be varied or few

Depends upon:
• Industry, organization, selling context and type of
customer the sources may vary

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 Prospecting Methods Vary & Depend On
Context
1. E-Prospecting
2. Cold canvassing
3. Endless chain – customer referral
4. Orphaned customers
5. Sales lead clubs
6. Prospect lists
7. Get published
8. Public exhibitions and demonstrations
9. Centre of influence
10.Direct mail
11.Telephone and telemarketing
12.Observation
13.Networking

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 Prospecting On the Web

Salespeople use Internet E-mail Marketing

• Purchase lists of potential customers
• Learn about potential buyers
• Emails opportunities to gauge
• Contact potential buyers interest and potential response
Social Media
• Communicate products and services
• Showcase testimonials from existing
customers
• Learn about potential customers &
their needs
Online Events
• Webinars, demonstrations, on-
demand videos
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 Cold Canvass

Contacts prospects via phone, Examples:

sales, mail
• Home security
salesperson goes door-to-
door visiting
neighborhoods

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 Endless Chain Customer Referral

Referral: Person or organization recommended

Individual who makes recommendation believes
salesperson has valuable solution to offer others
• Ask “do you know of any other individuals/firms that
might be interested in finding out about our
product?”

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 Orphaned Customers

Customers whose salesperson left company,

inactive accounts, customers who have not
purchased for a long time
Determine why customer stopped buying
• Re-establish contact

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 Develop A Prospect List

Develop a strong understanding of current

customers
Apply understanding to other groups that
meet/require similar solutions
• Who are my ideal prospects/customers
• What characteristics do most of my existing
customers share
• What kind of organizations (households) or
industries do they belong to
• What changes, trends are they encountering
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 Publish Articles, Blogs, Content That
Potential Customers May Find Valuable
Goal:
• Develop credibility or perception of expertise within
potential customers
Research publications and insights
• E-books, white papers, executive summaries,
research overviews

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 Exhibitions & Demonstrations

Focused on special interest gatherings

• Trade-shows, seminars, association meetings
• Provides contact with a large number of potential
buyers over a brief time

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 Center of Influence

Find key influencer of group, community, industry,

association
• Goal: Network with key influencer for assistance with
introductions to prospects

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 Direct Mail & Telemarketing

Direct Mail Telemarketing

• Contacting large pools of • Makes outbound calls to
potential prospects potential customers

• Uses written/mailed • Often uses technology to

communication increase quantity of calls

• Tends to utilize specialists (to

make call) and then later pass
them to an account executive

• Often use memorized or very

structured script

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 Teleprospecting

Distinct from telemarketing

Qualify prospect and determine if organization is
a right fit for salesperson’s products
• Involves a number of meetings/conversations
• Involves skills, such as need assessment and listening

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 Inside Sales

Uses centralized sales centers vs. dispersed sales force

Involves wide array of technology
• Video conferences, online demonstrations
• Uses same skills as professional selling
• Major difference: Technology mediated communication

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 Networking

Build a business network

• Associates, colleagues, customers, influencers,
friends
Utilize information of network to learn about
potential customers and their needs

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 How Is Prospecting Changing? 2

LinkedIn
Social networking website for
businesses and their employees
• Allows salesperson to learn about
needs of prospects and their firms
• Salespeople access comments and
posts of prospects
Used in prospecting process
• InMail, LinkedIn’s internal e-mail
system
• Used by sales representative to e-
mail any LinkedIn user without an
introduction
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