1. McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Prospecting: The Lifeblood of Selling
Chapter 6
Prospecting: The Lifeblood of Selling

3. The Golden Rule: Prospecting 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
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4. Exhibit 6.1: The Selling Process Has 10 Important Steps
10. Follow-up & Service
9. Close
8. Trial close
7. Meet objections
6. Determine objections
5. Trial close
4. Presentation
Product SELLs
Marketing Plan SELLs
Business Proposition SELLS
3. Approach
2. Preapproach/Planning
1. Prospect/Customer
The sales process is a sequential series of actions
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5. 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
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6. Compensation for the Salesperson that Prospects is Often:
Based upon 100% commission – if you do not sell, you do not earn
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7. Some Prospect, Some Do Not, cont…
Many organizations do not prospect
Examples are large consumer goods firms as General Mills* and Colgate*
* products and associated images used for illustrative purposes only
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8. Compensation for the Salesperson that Does Not Prospect is Often:
Based upon mostly salary with a small bonus and expenses such as car and office supplies paid
If you do not sell you still get paid, but not for very long
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9. The Prospector Has the Most Challenging Sales Career
This is the “order getter” who:
Finds a lead
Converts the lead into a prospect
Sells one day, and
Sells in the future too
WOW! That is a challenge
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10. Steps Before the Sales Presentation
Prospecting > appointment > planning
Rule of thumb
40% preparation
20% presentation
40% follow-up
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11. Exhibit 6.2: Before the Sales Presentation
Prospecting
Obtaining an appointment
Preapproach planning
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12. Prospecting–The Lifeblood of Selling
Prospect – qualified person
Prospecting – Identifies potential customer
Lead – only know name
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13. Prospecting–The Lifeblood of Selling
Qualified prospect is MAD
Money to buy?
Authority to buy?
Desire to buy?
Sales Prospecting Funnel
All leads and prospects must be considered and filtered through the MAD process before they become qualified prospects
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14. The Leaking Bucket Customer Concept
All salespeople lose X amount of sales and customers per year. This is illustrated in the Leaking Bucket Customer Concept:
Customers come into the top and leave through a hole in the bottom
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15. Where to Find Prospects
Sources may be varied or few
Persons selling different services and goods might not use the same sources
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16. Planning a Prospecting Strategy
Prospecting requires a strategy
A skill that can be constantly improved
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17. Exhibit 6.4: Prospecting Methods that Work!
Prospecting is the lifeblood of selling. While some salespeople don’t have to prospect, most rely on prospecting to increase sales and make money. Here are 12 popular methods:
E-Prospecting
Cold canvassing
Endless chain – customer referral
Orphaned customers
Sales lead clubs
Prospect lists
Get published
Public exhibitions and demonstrations
Centre of influence
Direct mail
Telephone and telemarketing
Observation
Networking
Which methods use referrals from customers and other people?
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18. Prospecting Methods E-prospecting on the Web Cold canvassing
Individuals
Organizations
Cold canvassing
Endless chain – customer referral
Orphaned customers
Sales lead clubs
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19. Prospecting Methods, cont…
Prospect lists
Become an expert – get published
Public exhibitions and demonstrations
Center of influence
Direct mail
Telephone and telemarketing
Observation
Networking
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20. Exhibit 6.5: The Processing System Within a Telemarketing Center
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21. Exhibit 6.6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm
Advertising
Inquiries per advertisement
Profiles of respondents
Sales-conversion rates per advertisement
Market Management
Segment analyses
Marginal-account identification
Marketing Research
Demographic data
Image and attitude
Forecasting data
Physical Distribution
Consumers’ orders
Distributor’s orders
Tracing and dispatching
Shipment requirements
Inventory requirements
Product return needs
Customer-service needs
Product Management
Sales per product
Questions and complaints
Consumer profiles
Sales Management
Lead qualification
Marginal-account status
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22. 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
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23. Referrals Are Used in Most
Prospecting Methods
Cold canvassing
Endless chain customer referrals
Orphaned customers
Sales lead clubs
Public exhibitions and demonstrations
Center of influence
Telephone
Networking
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24. The Prospect Pool
Leads
Referrals
Orphans
Your customers
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25. Exhibit 6.7: Components of the Prospect Pool
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26. The Referral Cycle
Obtaining referrals is a continuous process without beginning or end
Referral cycle – when and how to ask for referrals
The parallel referral sale
Sell the product to person
Obtain prospect name(s) from person
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27. 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
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28. Exhibit 6.8: The Referral Cycle: When to Ask for Referrals
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29. 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
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30. Treat the Referral Like a Customer
Once you have sold the referral, and gotten more referrals, ask the new customer to contact the referring customer on her 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
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31. 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
Call reluctance keeps you from:
Helping others
Earning what you’re worth
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32. 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
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33. Wireless E-Mail Helps you Keep in Contact and Prospect
Wireless helps keep the sales representative mobile.
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