Bmgt 204 chapter_6

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Bmgt 204 chapter_6

  1. 1. BMGT 204: Sales Strategies and Techniques Chapter 6: Prospecting: The Lifeblood of Selling
  2. 2. The Golden Rule: Prospecting • 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
  3. 3. 1. Prospect/Customer 2. Preapproach/Planning 3. Approach The sales process is a sequential series of actions 4. Presentation •Product SELLs •Marketing Plan SELLs •Business Proposition SELLS 5. Trial close 6. Determine objections 7. Meet objections 8. Trial close 9. Close 10. Follow-up & Service
  4. 4. Compensation for the Salesperson that Prospects is Often: • Based upon 100% commission – if you do not sell, you do not earn • Can be lucrative but highly competitive
  5. 5. Some Prospect, Some Do Not • Many organizations do not prospect • Examples are large consumer goods firms as General Mills* and Colgate*
  6. 6. 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
  7. 7. The Prospector Has the Most Challenging Sales Career • This is the “order getter” who: • • Converts the lead into a prospect • Sells one day, and • • Finds a lead Sells in the future too That is a challenge
  8. 8. Steps Before the Sales Presentation • Prospecting > appointment > planning • Rule of thumb • 40% preparation • 20% presentation • 40% follow-up
  9. 9. Prospecting Obtaining an appointment Preapproach planning Exhibit 6.2: Before the Sales Presentation
  10. 10. Prospecting–The Lifeblood of Selling • Prospect – qualified person • Prospecting – Identifies potential customer • Lead – only know name
  11. 11. 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
  12. 12. Planning a Prospecting Strategy • Prospecting requires a strategy • A skill that can be constantly improved
  13. 13. http://www.youtube.com/watch?v=RmOcFund1AM
  14. 14. Prospecting Methods • E-prospecting on the Web • Individuals • Organizations • Cold canvassing • Endless chain – customer referral • Orphaned customers • Sales lead clubs
  15. 15. Prospecting Methods, cont… • Prospect lists • Become an expert – get published • Public exhibitions and demonstrations • Center of influence • Direct mail • Telephone and telemarketing • Observation • Networking
  16. 16. Exhibit 6.5: The Processing System Within a Telemarketing Center
  17. 17. Prospecting Guidelines • Three criteria are: • • Concentrate on high potential customers • • Customize to each prospect Call back on no-buys Always keep knocking on prospect’s and customer’s door to help them
  18. 18. 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
  19. 19. The Prospect Pool Leads Referrals Orphans Your customers
  20. 20. The Referral Cycle • Obtaining referrals is a continuous process without beginning or end • • The parallel referral sale • Sell the product to person • • Referral cycle – when and how to ask for referrals Obtain prospect name(s) from person 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
  21. 21. Exhibit 6.8: The Referral Cycle: 
 When to Ask for Referrals
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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

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