Prospecting/Targeting
PROSPECTING
Is
the process of finding or
locating high potential
customers (i.e. prospects).
Starting from Scratch?

After graduating from college, Ryan
recently took an entry-level sales
position with Agri Gold. The company
has no customers currently in Ryan’s sixcounty trade territory. Ryan has been
asked to build Agri Gold’s business in his
assigned area. What advice do you
have for Ryan on finding customers?
Can I Lend You Some Money?

John is an ag loan officer for a local bank
in Sheffield. He currently serves about
50 farmer borrowers annually while
trying to gain 5-10 new borrowers.
Given not everybody ‘goes to the bank’
much these days, what
recommendations do you have for John
for identifying and contacting prospects?
Why Are Sales Booming?

Jeremy sells fertilizer for a local farm
supply business in central Illinois. In his
last four years, he has seen quantity
sales increase 28% and he has been
given two job promotions. What does
Jeremy say has been the main key to his
successful sales growth?
Growing or Converting A Prospect?

Scott works for a prominent Midwestern
insurance company that focuses on
meeting the insurance needs of small
businesses. The company’s sales
strategy includes the idea of a ‘cultivation
loop’. What is being ‘cultivated’ and
what are the steps involved?
Prospecting In Reverse?

Marv and Evelyn live in a neighborhood that
has seen its share of residential basement
water problems is a result of recent heavy
rains. Their house is no exception. So far,
they have only had minor ‘leakage’ problems,
but they are concerned about possible,
greater, long-term problems if they don’t deal
with the matter soon. What should Marv and
Evelyn do?
Prospecting observations:
Should be viewed as an opportunity to benefit someone vs. a
chore (easier to spend time with established customers)
Average customers attrition rate = 20-25%/yr because
customers:
1.
2.







3.
4.
Move
Go out of business
Retire
Change positions
Die
Switch to a competitor
Needs change
Needs to be planned and scheduled (can’t rely on serendipity
or luck to find new customers)
Can’t neglect current customers in order to prospect
Sources of Prospects/Prospecting Methods
Cold calling → visit or call people for whom you have no information
1.


Cool calling → visit or call people for whom you have some
information (e.g. business type, business size)
Referrals/leads → visit or call people who have been suggested to you
by current customer, or someone else
2.
3.
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4.
5.
6.
7.
8.
9.
Scary
Can open doors and penetrate areas where there are few sales currently
Obtain permission
Serves as a testimonial and builds credibility
Directories (e.g. business, telephone)
Trade shows/publications
Promotion/marketing (e.g. letters, post cards, advertise, web site,
phone calls)
Networking → using contacts/connections to meet other people (e.g.
within company, within industry, outside)
Conducting meetings/seminars
Miscellaneous (e.g. personal observations, social outings, traveling)
A Full Day of Excuses for Not
Calling on Prospects
8-10 a.m.
People usually busy with meetings.
10-11 a.m.
People tied up with projects mid morning.
11 a.m.-2 p.m. People going to, at, or coming back from LUNCH.
2-4 p.m.
People busy with training, projects, and more
meetings.
4-5 p.m.
People busy wrapping up their day and heading
home.
Targeting or Qualifying Prospects



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Narrowing down the ‘list’ (i.e. can vs. should be
contacted)
Critical for time management (cost per prospect call =
$200)
Trying to sell to everybody is less effective than
concentrating efforts
High potential prospect is one who:





Needs product/services
Makes the purchase decision
Is sufficiently large to be
profitable to serve
Is not a credit risk
May already be buying some
of your product

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Has convenient location
Is vulnerable to making a
change
Has pricing philosophy
consistent with yours
Is not a frequent switcher
Is influential in the market
‘Good’ Targets?

Opinion Leaders
=
Good prospects
=
‘Good’ farmers
=
‘Good’ business
managers
 Characteristics
Early adopters
Large sphere of influence
(respected)
Leaders
 Boards of directors
 School board
 Church
 Community organizations
 Commodity groups
Cautious
Expect salespeople to be
knowledgeable & prepared

Identifying Opinion Leaders
Extension agents
Bankers
Vo-Ag instructors
Farm suppliers
Other farmers, business
leaders
Strategies for Selling to Opinion Leaders
1.
2.
3.
Recognize their accomplishments
Show them respect/seek their advice
Form advisory board of opinion leaders


4.
5.
Meet semi regularly
Discuss issues, concerns, current events
Build relationship with them
Give them special attention (but no
‘special’ deals)
Prospecting Quotes

Professional sales reps discipline themselves to not
sell until they find out who is buying what. The biggest
rookie mistake is trying to sell everything to everybody.
(Jack Falvey, WSJ, 12-23-91)
 The main purpose of a salesperson is not to make
sales, but to create customers. (Selling Power)
 If selling were just a matter of determining who’s got
the low bid, the world wouldn’t need salespeople.”
(Howey MacKay)
 You can make more friends in two months by
becoming interested in other people than you can in
two years by trying to get other people interested in
you. (Dale Carnegie)