Prospecting—The Lifeblood of Selling Chapter 6 Prospecting—The Lifeblood of Selling McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 6

Main Topics Chapter 6 The Sales Process Has 10 Steps Steps Before the Sales Presentation Prospecting—The Lifeblood of Selling Where to Find Prospects Planning a Prospecting Strategy Prospecting Methods McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Main Topics Chapter 6 Prospecting Guidelines The Prospect Pool The Referral Cycle Call Reluctance Costs You Money! Obtaining the Sales Interview Wireless E-mail McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

The Tree of Business Life: Prospecting 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. T T Ethical Service T T T T T T T T Builds T r u e Relationships T C I

The Sales Process Has 10 Steps . Prospecting . Determine the objectives . Preapproach . Meet objections . Approach . Trial close . Presentation . Close . Trial close 0 . Follow-up

Exhibit 6-1: The Selling Process Has 10 Important Steps 1. Prospecting The sales process is a sequential series of actions 2. Preapproach - planning 3. Approach 4. Presentation 5. Trial close 6. Determine objections 7. Meet objections 8. Trial close 9. Close 10. Follow-up

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

Compensation for the Salesperson that Prospects is Often Based upon 100% commission If you do not sell, you do not earn

Some Prospect, Some Do Not Many organizations do not prospect. Examples are large consumer goods firms as General Mills and Colgate

Compensation for the Salesperson that Does Not Prospect is Often Based upon mostly salary with a small bonus and expenses such as car, office supplies paid If you do not sell you still get paid, but not for very long

The Prospector Has the Most Challenging Sales Career This is the “order getter” who Finds a lead Converts into a prospect Sells one day, And in the future WOW! That is a challenge

Prospecting - The Lifeblood of Selling Qualified prospect is MAD Money to buy? Authority to buy? Desire to buy?

Exhibit 6-2: Before the Sales Presentation

Steps Before the Sales Presentation Prospecting appointment planning Rule of thumb 20% presentation 40% preparation 40% follow-up

Prospecting—The Lifeblood of Selling Prospect - qualified person Prospecting - identifies potential customer Lead - only know name

Where to Find Prospects Sources may be varied or few Persons selling different services and goods might not use the same sources

Planning a Prospecting Strategy Requires a strategy A skill that can be constantly improved

Exhibit 6-4: Prospecting Methods that Work!

Prospecting Methods E-prospecting on the Web Cold canvassing Individuals Organizations Cold canvassing Endless chain—customer referral Orphaned customers Sales lead clubs

Prospecting Methods cont… Prospect lists Become an expert—get published Public exhibitions and demonstrations Center of influence Direct mail Telephone and telemarketing Observation Networking

Exhibit 6-5: The Processing System Within a Telemarketing Center

Exhibit 6-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm

Prospecting Guidelines Three criteria are: . Customize to each prospect . Concentrate on high potential customers fruit . Call back on no-buys Always keep knocking on prospect’s and customer’s door to help them.

Referrals Are Used in Most Prospecting Methods

The Prospect Pool Leads Referrals Orphans Your customers

Exhibit 6-7: Components of the Prospect Pool

The Referral Cycle Obtaining referrals is a continuous process without beginning or end Referral cycle -- when and hoew to ask for referrals The parallel referral sale Sell the product to person Obtain prospect name(s) from person

The Referral Cycle cont… The secret is to ask correctly during referral cycle The preapproach contact phase The presentation Product delivery contact phase Service and follow-up contact phase Customer service

Exhibit 6-8: The Referral Cycle: When to Ask for Referrals Preapproach Service and follow-up Prospect Pool Product delivery Presentation

Don’t 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

Treat the Referral Like a Customer Once you sell the referral, and gotten referrals, have the new customer contact the “referring customer” on 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

The Golden Rule: Don’t Mistreat the Referral Service shows you have a servant heart and care about the customer.

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

Exhibit 6-9: The 12 Faces of Call Reluctance Think you might suffer from call reluctance? See if you fit 1 of the 12 classic types identified by researchers George Dudley and Shannon Goodson. They’re listed in order from most common to least common.

Exhibit 6-9: The 12 Faces of Call Reluctance 1. Yielder - Fears intruding on others or being pushy 2. Overpreparer - Overanalyzes, underacts 3. Emotionally unemancipated - Fears loss of family approval, resists mixing business and family 4. Separationist - Fears loss of friends, resists prospecting among personal friends 5. Hyper-pro - Obsessed with image, fears being humiliated 6. Role rejecter - Ashamed to be in sales

Exhibit 6-9: The 12 Faces of Call Reluctance 7. Socially self-conscious - Fears intruding on others or being pushy. Intimidated by upmarket customers. 8. Doomsayer - Worries, won’t take risks 9. Telephobic - Fears using the telephone for prospecting or selling 10. Stage fright - Fears group presentations 11. Referral aversions - Fears disturbing business or client relationships 12. Oppositional reflex - Rebuffs attempts to be coached

Exhibit 6-9: The 12 Faces of Call Reluctance: How to Conquer the Fear

Exhibit 6-9: The 12 Faces of Call Reluctance: How to Conquer the Fear

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 prospect’s firm Call at the right time on the right person Do not waste time waiting

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

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