The Art of Effective Prospecting.

Setting the Stage… Answers The two categories Mike uses are “those who embrace technology” and “those who are reluctant to use technology.” Mike categorizes his prospects to improve his efficiency. He has found that customers within each category have similar needs. So, he offers a different type of service to each category of customer.

What is Prospecting ? The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salesperson’s market offering of products and services.

Prospecting is like breathing – If you stop doing it, you die Prospecting is like breathing – If you stop doing it, you die. You need people to sell your products to. If you have a strong inflow of suitable names, you will also be able to look forward to a steady stream of income. Being without suitable prospects means being unemployed.

Prospecting – Summary. Obtains referred leads Approaches personal friends as prospects Engage in cold canvassing Creates and utilizes centres of influence Qualifies prospects before initial contact Eliminates unqualified names (suspects)

Prospecting – Summary. Obtains personal introduction to prospects Utilise mass prospecting techniques (mail) Resells to policyholders Seeks names of suspects from various sources ( newspapers, directors, membership lists) Prospects continuously so as to see enough people.

Why Buyers Won’t See Salespeople They may have never heard of the salesperson’s firm. They may have no need; they just bought the product category. The buyer may have their own deadlines on other issues.

Why Buyers Won’t See Salespeople 4. Buyers are constantly getting calls from salespeople and do not have the time to see them all. 5. Gatekeepers in any organization screen their bosses’ calls and are often curt and even rude.

A qualified name is someone who: Can afford your product(s) Qualifying Names A qualified name is someone who: Can afford your product(s) Has a need for your product(s) Is approachable.

Qualifying Names It is important to note that you are not only paid to place insurance on the books, but to keep it on the books. When a policy lapses, you forfeit the commission that you earned. The quality of your after-care service always plays a vital role in keeping the business on the books.

Qualifying Names. Consequently, the person who achieves success in sales doesn’t ask himself: “How many people do I know?’’ but: “Which people do I want to do business with?’’ It is important to prospect in a market where the clients match your personal profile.

Qualifying Names. It would generally be to your advantage to avoid the following types of clients: People who do not have a bank account or stop-order facilities. People who frequently change jobs. People who can afford only small premiums (students and such groups). People who have allowed policies to lapse once before. E.g. Salaried persons who are experiencing financial difficulties.

Continuous Prospecting. A fact is that, you will not do business immediately with each qualified name you have identified. This is why it is important that you obtain many more qualified names than the number of policies you have to sell.

Continuous Prospecting. Statistics Prove That: Out of every nine qualified prospects that you approach, only three will make an appointment. Out of the three appointments, you will probably close only one sale.

Continuous Prospecting. This means that: If you must obtain 20 policies a month, You must get at least 60 appointments, which means that You must phone/talk to at least 180 people and ask them for an appointment.

Time Management Because obtaining suitable names is the most important task in your sales action, it is vitally important that, as you schedule time for appointments with clients, you allocate specific time per day/week to prospect.

What Information do I Need? Just a name means nothing. Before you approach any person for an appointment you need to know enough to decide whether you want to do business with him or not. The three criteria to watch: Can afford your product(s) Is approachable. Has a need for your product(s)

Can He Afford Your Product? This seems like a difficult one. To get a person’s income without asking him/her is difficult. You don’t really need his income. Look at things such as: Where does (s)he work? What car does he drive? What job does (s)he do? His/her decision-making powers/abilities? Where does (s)he stay?

Is he approachable? This is easy to find out. Get/ask for things such as: A contact number Information about his occupation His availability/willingness to see you?

Does He Have A Need For Your Product? Look for some event in his life that will create a financial need, such as: Completing his school career Changing jobs Completing his studies Not having a pension fund Starting work

Does He Have A Need For Your Product? Look for some event in his life that will create a financial need, such as: Getting promoted Getting married Inheriting money Buying a house Being close to retirement Having a child

SEGMENT MARKET Identify a market that suits you. If you are able to speak the language of your market and understand their needs and wants, you will increase your sale successes. It is easier to sell in a market that you know and understand. E.g. Enterprise Life segments the market as follows: You must further segment the market to identify people with homogeneous financial profiles and needs. Market Entry Level Middle Affluent Household Income 100 - 5,000 5,000 - 35,000 35,000 +

Where Do I Prospect? Prospecting can be done through: Referrals from existing clients and networks Presenting seminars in a workplace Data prospecting and Cultivating a scout

The Workplace One of the ways to segment your market is to identify a workplace that fits your profile. A workplace is a place where many people work and where you may obtain a list of employees through the mediation of the manager or the personnel manager. A workplace such as this could include: The ministries, the courts, the local municipalities and hospitals, local medical practitioners, large private companies, schools etc.

Group of people who have common characteristics, such as; Professional people (attorneys, engineers, doctors, nurses etc.) Members of the chamber of businesses – Chamber of Mines etc Members of a society – Red Cross Society Residents in a certain area – Neigbourhood or Community Based. Clients of a leading clothing business – MKOG, Nalem, ATL etc. People who have changed jobs People who have just been promoted Members of a sports clubs

Group of people who have common characteristics, such as – Cont’d. The owners of certain items (e.g. aircraft, Bugarti) Parents of new born babies Next of kin of deceased persons NB: It is important that you obtain sufficient information about the names, so that you are able to decide whether you want to do business with them or not.

CONCLUSION. Your success as an adviser depends largely on your consistent ability to find good quality names. The best way to go about this is to establish yourself in a source that matches your target market.

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