Module Five Prospecting and Pre-approach Learning Objectives 1. Explain strategic prospecting. 2. Discuss why prospecting can be a challenging task for a salesperson. 3. Explain where salespeople find prospects. 4. Understand the importance of gathering and studying precall information. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Setting the Stage Using Questions to Qualify Potential Customers 1. What are the two categories Mike Ciccheto uses to organize his prospects? 2. Why does Mike categorize his prospects? Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Why Buyers Won’t See Salespeople 1. 2. 3. 4. 5. They may have never heard of the salesperson’s firm. They may have no need; they just bought the product category. The buyer may have their own deadlines on other issues. 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 are often curt and even rude. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Prospecting Sales Leads Screening Procedures for Qualifying Leads Qualified Prospects Professional Selling: A Trust-Based Approach The process of identifying, qualifying, and prioritizing organizations and individuals that have the need for and potential to purchase the salesperson’s market offering of products and services. Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Popular Prospecting Sources & Methods External Internal Sources 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 Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams 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 Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams 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 Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Importance of Effective Prospecting Suppose it takes 10 leads to generate one qualified prospect 100 Leads And suppose it takes 10 qualified prospects to generate one customer You would need 100 leads to generate one customer. One Customer Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Importance of Effective Prospecting The better the lead generation method, the higher the proportion of qualified leads. 50 Leads The more accurate the qualifying process, the higher the proportion of customers per qualified lead. Improving the lead generation method so that 10 leads generates two qualified customers means you will need only 50 leads to One generate one customer. Customer Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect The prospect’s name and title Correct spelling and pronunciation can be gathered by asking the receptionist or secretary or gatekeeper to verify information. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect Is this prospect willing to take risks? Are they confident with their decision making? May have to ask the prospect Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect Is the buyer involved in their community? Do they belong to clubs or professional organizations? Observe club or organizational honors displayed in the office. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect Does the prospect have hobbies or interests they are proud of? Observation of office. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect What is the prospect’s personality type? Easy going? All business? Observation and experience with buyer. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect Where did this prospect grow up? Where were they educated? Look for diplomas. Ask. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect’s Organization What type of business are we dealing with? Can be gathered from a directory and company web site. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect’s Organization To what market does the company sell? Who are its primary competitors? What does the company make & sell? Annual reports and company web site. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams Gathering Precall Information: The Prospect’s Organization Who and how many vendors does the prospect presently buy from? How much and how long have they been purchasing from their supplier(s)? What challenges is the organization facing? Salesperson may have to ask for this information. Professional Selling: A Trust-Based Approach Module 5: Prospecting and Pre-Approach Ingram LaForge Avila Schwepker Jr. Williams