9-1 developing and qualifying a
TRANSCRIPT
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9-1
Developing and Qualifying aProspect Base
Selling TodaySelling Today10th Edition
CH
AP
TE
R Manning and Reece
9
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Learning ObjectivesLearning Objectives
• Discuss the importance of developing a prospect base
• Identify and assess important sources of prospects
• Describe criteria for qualifying prospects
• Explain common methods of organizing prospect information
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Learning ObjectivesLearning Objectives
• Name some characteristics that are important to learn about customers as individuals and business representatives
• Describe the steps in developing a prospecting and sales forecasting plan
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Prospect, Prospecting, and Prospect Base Defined
Prospect, Prospecting, and Prospect Base Defined
• Prospect: a potential customer that meets the qualification criteria established by your company
• Prospecting: identifying potential customers
• Prospect base: is made up of current customers and potential customers
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Importance of ProspectingImportance of Prospecting
• Every salesperson must cope with customer attrition
• Customers move, firms go out of business, sales lost to competition
• Average company may lose 15 to 20% of customer base every year
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Girard’s Ferris Wheel—SupplyGirard’s Ferris Wheel—Supply
FIGURE 9.1
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Girard’s Ferris Wheel—LossGirard’s Ferris Wheel—Loss
FIGURE 9.1
CONTINUED
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Prospecting Requires Planning
Prospecting Requires Planning
• Increase number of people who board the Ferris wheel
• Improve the quality of prospects
• Shorten sales cycle by determining which prospects are “qualified”
• Prospecting plans must be monitored continuously for effectiveness
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ReferralsReferrals
• Prospect recommended: by current satisfied customer or one familiar with product or service
• Endless chain: ask contact who else could benefit from product
• Referral organizations: facilitate networking
• Friends, family members, centers of influence: a person may not make decision but has influence on those who do . . . opinion leaders
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Hancock’sLead
Generation
Hancock’sLead
Generation
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Business Network InternationalBusiness Network International
Visit the world’s largest referral organization
www.bni.com
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DirectoriesDirectories
• Hundreds of business and industrial directories available
• Many major trade associations publish directories
• Be sure to use current copy or edition as prospects shift firms; track people and companies
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Thomas RegisterThomas Register
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Trade Shows/PublicationsTrade Shows/Publications
• Trade shows and conventions: your company may have a booth at key trade shows/expositions
• Trade publications: each industry has trade publications that sales professionals need to read
• Join trade associations: many salespersons join trade associations to gain access to potential buyers
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TelemarketingTelemarketing
• Telemarketing: the practice of marketing goods and services through telephone contact
• To identify buyers and generate contact lists for sales staff
• To qualify prospects
• To verify sales leadsgenerated by other methods
• To conduct follow-ups
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Direct Response andSales Letters
Direct Response andSales Letters
• Direct response advertising: often features inquiry cards or information requests via mail or telephone
• Sales letters: send sales letters to decision makers, then follow up
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WebsiteWebsite
• Websites provide cost-effective way for sales professionals to:
• Project personal image
• Provide additional information
• Generate leads from visitors to site
• Present product information
• Establish e-mail lists
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Computerized DatabasesComputerized Databases
• In-house databases: your firm may already have a comprehensive database; sometimes referred to as the “house list” with details on customers, purchase patterns, and so forth
• List sources: wide range of precise lists available from variety of sources
• See www.infoUSA.com
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Computerized DatabasesComputerized Databases
• Purchasing databases or lists can be costly; price usually set on cost-per-thousand names
• Not all relevant databases are equal; some “pull” better than others
• Pull is the percentage of the list resulting in qualified prospects or actual sales
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Cold CallingCold Calling
• Simply calling prospects without referrals
• New salespeople rely on these as they haven’t built referral base
• Must be strategically planned
• Prelude to in-person appointment
• A way to introduce yourself and your company to a prospect
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NetworkingNetworking
• Making and profiting from personal connections
• Networking guidelines
• Meet as many people as you can
• Tell them what you do
• Do not do business while networking
• Offer business card
• Edit contacts and conduct follow-ups
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Three Types of NetworksThree Types of Networks
FIGURE 9.2
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Educational SeminarsEducational Seminars
• Provide opportunity to showcase product without pressuring to buy
• Require extensive preparation
• Start value-added process
• Can attend or present at industry sponsored seminars or offer your own
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Non-Sales EmployeesNon-Sales Employees
• Non-sales personnel can be valued source of leads
• Prospecting not necessarilyexclusive task of sales force
• Non-sales personnel oftenneed training and incentives
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Combination ApproachesCombination Approaches
• Salespersons generally rely on combination of prospecting methods
• Some methods have higher yield than others
• Important to use CRM technology to help maximize efficiency
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Discussion QuestionsDiscussion Questions
• If you were selling ACT! contact management software, how might you develop a prospect list?
• If you were a personal investor, how might you develop a prospect list?
• If you worked for an international shipping company, how might you develop a prospect list?
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Qualifying ProspectsQualifying Prospects
Key time-saving criteria:
• Does the prospect need my product?
• Can prospect make the buying decision?
• Can prospect pay for the purchase?
• Will anyone close the sale?
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Organizing Prospect Information
Organizing Prospect Information
• Prospect as an individual
• Prospect as a business representative
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Prospect Information
Prospect Information
Harvey Mackay suggests 66-question customer profile.
See it at:
mackay.com
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Prospecting and Sales Forecasting Plans
Prospecting and Sales Forecasting Plans
Important to balance time and organize contacts:
• Prepare a list of prospects
• Forecast potential sales volume for each new account, by product
• Carefully plan the sales route to minimize time and cost