Strategic Prospecting and Preparing for Sales Dialogue Module Five Strategic Prospecting and Preparing for Sales Dialogue

Learning Objectives Discuss why prospecting can be a challenging task for a salesperson. Explain strategic prospecting. Explain where salespeople find prospects. Understand the importance of gathering and studying precall information to prepare for a sales dialogue.

Key Thoughts Strategic prospecting is the process by which salespeople separate out those that are more likely to buy from those that are less likely to buy in order to avoid wasting resources. Leads may be generated in a variety of methods. It is important for salespeople to know which are more effective. Satisfied customers are often the best source of good leads. A strategic prospecting plan will improve a salesperson’s prospecting efficiency and effectiveness. Salespeople should spend some time learning what they can (without wasting resources) about their qualified leads in order to develop an effective sales strategy.

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

Strategic Prospecting The process of identifying, qualifying, and prioritizing sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. Sales Leads Screening Procedures for Qualifying Leads Screened Out Screened Out Qualified Prospects Sales Opportunities for the Salesperson

Popular Prospecting Sources & Methods Personal Contact Observation Cold Canvassing Trade Shows Bird Dogs (Spotters) External Sources Referrals Introductions Community Contacts (Centers of Influence) Organizations Non-competing Salespeople Visible Accounts Internal Sources Company Records Lists and Directories Advertising Inquiries Telephone Inquiries Mail Inquiries Internet or World Wide Web

Qualified Prospects . . . Can benefit from the sales offering Have the financial wherewithal to make the purchase Play an important role in the purchase decision process

Qualified Prospects . . . Are eligible to buy based on a fit within the selling strategy Are reasonably accessible and willing to consider the sales offering Can be added to the customer base at an acceptable level of profitability

Importance of Effective Prospecting One Customer 100 Leads Suppose it takes 10 leads to generate one qualified prospect And suppose it takes 10 qualified prospects to generate one customer You would need 100 leads to generate one customer.

Importance of Effective Prospecting One Customer 50 Leads The better the lead generation method, the higher the proportion of qualified leads. The more accurate the qualifying process, the higher the proportion of customers per qualified lead. Improving the lead generation method so that 10 leads generates two qualified customers means you will need only 50 leads to generate one customer.

Gathering Precall Information: The Prospect Info Needed The prospect’s name and title Correct spelling and pronunciation can be gathered by asking the receptionist or secretary or gatekeeper to verify information. Source

Gathering Precall Information: The Prospect Is this prospect willing to take risks? Are they confident with their decision making? Info Needed Source May have to ask the prospect

Gathering Precall Information: The Prospect Is the buyer involved in their community? Do they belong to clubs or professional organizations? Info Needed Observe club or organizational honors displayed in the office. Source

Gathering Precall Information: The Prospect Does the prospect have hobbies or interests they are proud of? Info Needed Source Observation of office.

Gathering Precall Information: The Prospect What is the prospect’s personality type? Easy going? All business? Info Needed Observation and experience with buyer. Source

Gathering Precall Information: The Prospect Where did this prospect grow up? Where were they educated? Info Needed Source Look for diplomas. Ask.

Gathering Precall Information: The Prospect’s Organization What type of business are we dealing with? Info Needed Can be gathered from a directory and company web site. Source

Gathering Precall Information: The Prospect’s Organization To what market does the company sell? Who are its primary competitors? What does the company make & sell? Info Needed Annual reports and company web site. Source

Gathering Precall Information: The Prospect’s Organization Who and how many vendors does the prospect presently buy from? How much and how long have they been purchasing from their supplier(s)? What challenges is the organization facing? Info Needed Source Salesperson may have to ask for this information.