5 Strategic Prospecting and Preparing for Sales Dialogue Learning Objectives Discuss why prospecting is an L 1 important and challenging task for salespeople. Explain strategic prospecting and L 2 each stage in the strategic prospecting process. Describe the major prospecting L 3 methods and give examples of each method. 5 Learning Objectives Explain the important components L 4 of a strategic prospecting plan. Discuss the types of information L 5 salespeople need to prepare for sales dialogue. 5 5 http://adage.com/adages/post?article_id= 146690 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. 5 Why Buyers Won’t See Salespeople 1. 2. 3. 4. 5. They may have never heard of the salesperson’s firm. They may have just bought the salesperson’s product category, and there is presently no need. Buyers may have their own deadlines on other issues, and they are not in a receptive mood to see any salespeople. 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 sometimes are curt and even rude. 5 The Importance and Challenges of Prospecting • Customer-bases are not permanent, salespeople may lose customers due to: – – – – Low satisfaction Competition Economic fluctuation Other forms of attrition • The prospecting process is can be long – It may take weeks to replace a lost customer with a new one – Revenue streams can fluctuate if “pipeline” isn’t managed • Prospecting isn’t easy and often includes a lot of rejection 5 Ethical Dilemma 5 The Strategic Prospecting Process Sales Funnel or Pipeline: A representation of the trustbased sales process and strategic sales prospecting process. A process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. 5 Strategic Prospecting Sales Leads Screened Out Screening Procedures for Qualifying Leads Qualified Prospects Sales Opportunities for the Salesperson The process of identifying, qualifying, and prioritizing sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. Screened Out 5 Popular Prospecting Sources & Methods External Internal Sources Personal Contact ––– ––– ––– – –– – –– Referrals Company Records Observation Introductions Lists and Directories Cold Canvassing Community Advertising Inquiries Trade Shows Contacts (Centers of Inquiries Influence) Telephone Bird Dogs (Spotters) Organizations Mail Inquiries Non-competing Internet or World Wide Salespeople Web – Visible Accounts 5 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 5 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 5 Strategic Prospecting Process Sales Leads or Suspects • Generated from Internal or External Sources • Lead Generation Methods Should be Managed Qualifying Process • Need? • Financial Resources • Authority to Make Purchase Decision Sales Prospect Ideal Customer Profile: The characteristics of a firm’s best customers or the perfect customer. • Prioritize Prospect List • Initiate Pre-Call Planning 5 Popular Prospecting Sources & Methods 5 Developing a Strategic Prospecting Plan 5 Developing a Strategic Prospecting Plan 5 Gathering Precall Information: The Prospect 5 Gathering Precall Information: The Prospect’s Organization 5 Ethical Dilemma 5 Role Play 5