2. Prospecting—The Lifeblood of Selling6
Chapter
Prospecting—The Lifeblood of Selling
McGraw-Hill/Irwin
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

3. 6
Chapter

4. 6 Main Topics Chapter The Tree of Business Life: Prospecting
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
Prospecting—The Lifeblood of Selling
Where to Find Prospects
Planning a Prospecting Strategy

5. 6 Main Topics Chapter Prospecting Methods Prospecting Guidelines
The Referral Cycle
Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless Helps You Keep in Contact and Prospect

6. 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

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

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

9. Exhibit 6-2: Before the Sales Presentation

10. Prospecting–The Lifeblood of Selling
Prospect – qualified person or organization
Prospecting – identifies potential customer
Lead – name of a person or organization (also referred to as a suspect)

11. A qualified prospect is MAD
He or she has:
Money to buy
Authority to buy
Desire to buy

12. 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.

13. Some Prospect, Some Do Not
Many salespeople prospect, both those selling business-to-business and those selling to consumers.
Examples are:
Financial services, such as life insurance
Real estate

14. 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

15. Compensation for the Salesperson that Prospects is Often:
Based upon 100% commission – if you do not sell, you do not earn.

16. 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.

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

18. Planning a Prospecting Strategy
Prospecting requires a strategy.
It is a skill that can be constantly improved

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

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

21. Exhibit 6-4: Prospecting Methods that Work!

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

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

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

25. Referrals Are Used in Most Prospecting Methods
Eight of the twelve popular prospecting methods directly ask for referrals.
Referrals can be directly used in:
Cold canvassing
Endless chain customer referrals
Orphaned customers
Sales lead clubs
Public exhibitions and demonstrations
Center of influence
Telephone
Networking

26. The Prospect Pool
Leads
Referrals
Orphans
Your customers

27. Exhibit 6-7: Components of the Prospect Pool

28. 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

29. The Referral Cycle, cont…
The secret is to ask correctly during referral cycle:
The pre-approach contact phase
The presentation
Product delivery contact phase
Service and follow-up contact phase: Customer service

30. Exhibit 6-8: The Referral Cycle: When to Ask for Referrals

31. 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.

32. Treat the Referral Like a Customer
Once you have sold the referral, and gotten more referrals, ask this 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!

33. 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.

34. Call Reluctance: How to Conquer the Fear

35. Obtaining the Sales Interview
The 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

36. Wireless E-mail Helps You Keep in Contact and Prospect
No one needs constant contact with the home office, customers, and prospects more desperately than a sales representative.

37. 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

38. 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.

39. 6 End of Chapter 6 Chapter McGraw-Hill/Irwin
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.