2. Prospecting – The Lifeblood of Selling
Chapter 7
Prospecting – The Lifeblood of Selling
McGraw-Hill/Irwin
Fundamentals of Selling, 10/e
Copyright © The McGraw-Hill Companies, Inc. All rights reserved.

3. 7
Chapter
7-3

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

8. 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

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

10. 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

11. 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

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

14. Exhibit 7-2: Before the Sales Presentation

15. Prospecting–The Lifeblood of Selling
Prospect – qualified person
Prospecting – Identifies potential customer
Lead – only know name

16. 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

17. 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

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

19. Planning a Prospecting Strategy
Prospecting requires a strategy
A skill that can be constantly improved

20. Exhibit 7-4: Prospecting Methods that Work!

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

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

23. Exhibit 7-5: The Processing System Within a Telemarketing Center

24. Exhibit 7-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm

25. 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

26. 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

27. The Prospect Pool
Leads
Referrals
Orphans
Your customers

28. Exhibit 7-7: Components of the Prospect Pool

29. 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

30. 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

31. Exhibit 7-8: The Referral Cycle: When to Ask for Referrals

32. 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

33. 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

34. 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

35. 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

36. Wireless E-Mail Helps you Keep in Contact and Prospect
Wireless helps keep the sales representative mobile.

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