The Power of Selling
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Chapter 7
Prospecting and Qualifying: The Power to Identify
Your Customers
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Video Ride-Along
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The video Prospecting features Lisa Peskin, Sales Trainer, Business
Development University
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Lisa Peskin shares her tips for identifying new customers
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According to her, cold calling is the least effective method for prospecting
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http://www.youtube.com/watch?v=kb7pjzqfmdc
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Chapter Objectives
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Explain the role of the seven steps of the selling process.
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Understand the role prospecting plays in the selling process.
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Identify resources to use when prospecting.
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Understand how to identify prospective employers.
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Figure 7.1 – Seven-Step Selling Process
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Seven Steps of Selling Process
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Prospecting: Identifying the potential buyers for a product or a service
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Qualifying: Determining whether a lead has the desire and ability to buy
your product or service
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Preapproach: Preparation and research a salesperson does before making
the sales call
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Approach: First few minutes of a sales call, during which the salesperson
explains her purpose for coming and establishes a rapport
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Seven Steps of Selling Process
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Presentation: Part of the sales call when the salesperson offers a solution
for the prospect
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Objections: Hesitations or concerns a prospect might have about the
product or purchasing process
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Close/Closing: Agreeing on the terms of the sale and finalizing the
transaction
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Follow-up: Salesperson assures customer satisfaction and maintains
customer relationships
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Prospecting: A Vital Role in the Selling
Process
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The value of a lead
– Customers who give the “just looking” response are valuable leads
– If such customers are not followed up and qualified, their business goes to a
competitor
Item number: 200464104001
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Prospecting: A Vital Role in the Selling
Process
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Sales funnel: An illustration of the way the sales process begins with a
large pool of prospects and ends with a more focused number of buyers
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Technological tools can help identifying, qualifying and prioritizing
prospects
– Examples: Collaborative communities and online resources
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Figure 7.4 - Traditional Sales Funnel
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Video: Understanding the Sales Funnel:
http://www.youtube.com/watch?v=TV1j21Ky4dk&feature=related
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Is the Sales Funnel Dead?
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http://www.youtube.com/watch?v=TV1j21Ky4dk&feature=related
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Buy-cycle Funnel (Parts I and II) Mark Sellers
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http://www.youtube.com/watch?v=oyucRm_CNvI
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http://www.youtube.com/watch?v=ZDGNb_ixJdM&feature=related
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Prospecting: A Vital Role in the Selling
Process
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To decide which prospects you should invest your time in pursuing, create
a profile of your ideal buyer:
– What particular qualities and characteristics will define this individual or
company?
– What specific problems would this buyer have that your product could solve?
– In what ways should the buyer be compatible with you or your organization?
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Where to Find Prospects
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Top ten power prospecting list:
– Existing customers
– Referrals
– Networking and social networking
– Business directories in print
– Online databases and directories
– Newspapers, trade publications, and business journals
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Where to Find Prospects
– Trade shows and events
– Advertising and direct mail
– Cold calling
– Be a subject matter expert
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Seth Godin Interview
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The video How To Flip The Sales Funnel features Seth Godin, Best-Selling
Author, Entrepreneur, and an Agent of Change
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Seth Godin talks about ‘flipping the funnel’ which means turning the
funnel to a megaphone and letting your best customers act as your
salespeople
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To view the video, click here
Source: SellingPower.com
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Organizing Your Prospect Information
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Choosing a system
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Gathering intelligence
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Keep it up-to-date
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Choosing a System
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Customer relationship management (CRM): The process a company uses
to organize and track their current and potential customer information
– It allows you to maintain relationships in a systematic way, following up more
consistently with your leads and continuing to meet the needs of your existing
customers
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Choosing a System
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Contact management system (CMS): A system for tracking and organizing
customer and prospect information that is less complex than CRM and
doesn’t necessarily keep a record of every customer contact
– It allows you to keep current contact and company information on your
prospects and to record detailed notes about your conversations with them
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Keep It Up-To-Date
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To avoid loosing (losing) your prospect to a competitor, keep your prospect
information current
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Several online business directories provide customized alerts on company
news, turnover of key personnel, or merging and splitting off of companies
– Examples: RSS ( Really Simple Syndication) and Google news alerts
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Qualifying Your Prospects
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Five questions to help you meet your qualifying objectives:
– Does your prospect have a need?
– Does he or she have the authority to make the buying decision?
– Does he or she have the resources to purchase the product or service?
– Does he or she have the willingness to purchase the product?
– Do you have access to the influencer or decision makers?
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Managing Your Prospect Base
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Once you have qualified your prospect, the next step is making an action
plan
– Action plan: A specific plan of approach for each customer
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Begin your action plan by conducting a need analysis because your qualified
prospects will have different needs
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Think about the next steps in the sales process
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Develop a timeline and plot out the steps
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