Developing a Prospect Base C H A P T E R 9

9 Copyright  2004 Pearson Education Canada Inc. 9-2 Learning Objectives Discuss the importance of developing a prospect base Identify and assess important sources of prospects Explain common methods of organizing prospect information

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-3 Learning Objectives (Continued) Describe criteria for qualifying prospects Identify some characteristics that are important to learn about customers as individuals and as business representatives Describe the steps in developing a prospecting and sales forecasting plan

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-4 Prospecting Prospecting is a systematic process of identifying potential customers.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-5 Prospecting The prospect base is a list of current and potential customers. A prospect is a potential customer.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-6 Common Causes of Customer Attrition Customer re-location Business closure or merger Buyer leaves due to promotion, retirement, resignation, etc.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-7 Improving the Quality of Prospecting Increase the number of potential prospects who board the “Ferris Wheel.” Improve the quality of prospects. Shorten the sales cycle by dealing with “qualified” prospects.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-8 Prospecting – The “Ferris Wheel” Concept Referrals Friends, family members, and centres of influence Directories and trade publications Trade shows and telemarketing Direct response advertising and sales letters Web sites and computerized databases Cold calling, networking, and educational seminars Prospecting by non-sales employees

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc. 9-9 Prospecting – The “Ferris Wheel” Concept Referrals Friends, family members, and centres of influence Directories and trade publications Trade shows and telemarketing Direct response advertising and sales letters Web sites and computerized databases Cold calling, networking, and educational seminars Prospecting by non-sales employees Relationship between customer and salesperson deteriorates Business Failure New buyer buys from another source Acquisitions and mergers Customer moves Death of customer Customer has only a one-time need for product Customer needs change because of new technology

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Referrals - The Endless Chain A Referral is a prospect who has been recommended by a current customer or by someone who is familiar with the product or service. A productive referral begins an “endless chain” of opportunities to prospect for new business.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Prospecting for Clients – Canadian Directories Blue Book of Canadian Business Canadian Key Business Directory Canadian Directory of Industrial Distributors Canadian Trade Index Fraser’s Canadian Trade Directory Polk City Directory Scott’s Directories

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Prospecting for Clients – Scott’s Directories Scott’s Directories -

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Using your Network Networking is the practice of making and using contacts. It involves people meeting people and profiting from the connections.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Using Networking Tips for Networking Be focused Be a listener Be sincere Be mobile Be a joiner Be sensitive to cultural and physical differences

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc Search for “Qualified” Prospects A “qualified” prospect has a need for the product or service. the ability to afford and pay for the product or service. the authority to make a purchase decision.

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc When “Qualifying” Prospects, you should ask Are they already buying from you? Are they a former customer? If so, why did they stop buying? Are they users of your product or service?

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc When “Qualifying” Prospects, you should ask (Continued) What is the amount of potential sales? Does the prospect have a good credit rating?

C H A P T E R 9 Copyright  2004 Pearson Education Canada Inc The Prospecting Plan Prepare a prospect list Forecast the potential sales volume that might be generated Establish a logical territory route