9-1 Developing and Qualifying a


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9-1 Developing and Qualifying a

  1. 1. Developing and Qualifying a Prospect Base 9 Selling Today 10 th Edition CHAPTER Manning and Reece
  2. 2. Learning Objectives <ul><li>Discuss the importance of developing a prospect base </li></ul><ul><li>Identify and assess important sources of prospects </li></ul><ul><li>Describe criteria for qualifying prospects </li></ul><ul><li>Explain common methods of organizing prospect information </li></ul>
  3. 3. Learning Objectives <ul><li>Name some characteristics that are important to learn about customers as individuals and business representatives </li></ul><ul><li>Describe the steps in developing a prospecting and sales forecasting plan </li></ul>
  4. 4. Prospect, Prospecting, and Prospect Base Defined <ul><li>Prospect: a potential customer that meets the qualification criteria established by your company </li></ul><ul><li>Prospecting: identifying potential customers </li></ul><ul><li>Prospect base: is made up of current customers and potential customers </li></ul>
  5. 5. Importance of Prospecting <ul><li>Every salesperson must cope with customer attrition </li></ul><ul><ul><li>Customers move, firms go out of business, sales lost to competition </li></ul></ul><ul><ul><li>Average company may lose 15 to 20% of customer base every year </li></ul></ul>
  6. 6. Girard’s Ferris Wheel—Supply FIGURE 9.1
  7. 7. Girard’s Ferris Wheel—Loss FIGURE 9.1 CONTINUED
  8. 8. Prospecting Requires Planning <ul><li>Increase number of people who board the Ferris wheel </li></ul><ul><li>Improve the quality of prospects </li></ul><ul><li>Shorten sales cycle by determining which prospects are “qualified” </li></ul><ul><li>Prospecting plans must be monitored continuously for effectiveness </li></ul>
  9. 9. Referrals <ul><li>Prospect recommended: by current satisfied customer or one familiar with product or service </li></ul><ul><li>Endless chain: ask contact who else could benefit from product </li></ul><ul><li>Referral organizations: facilitate networking </li></ul><ul><li>Friends, family members, centers of influence: a person may not make decision but has influence on those who do . . . opinion leaders </li></ul>
  10. 10. Hancock’s Lead Generation
  11. 11. Business Network International <ul><li>Visit the world’s largest referral organization </li></ul><ul><li>www.bni.com </li></ul>
  12. 12. Directories <ul><li>Hundreds of business and industrial directories available </li></ul><ul><li>Many major trade associations publish directories </li></ul><ul><li>Be sure to use current copy or edition as prospects shift firms; track people and companies </li></ul>
  13. 13. Thomas Register
  14. 14. Trade Shows/Publications <ul><li>Trade shows and conventions: your company may have a booth at key trade shows/expositions </li></ul><ul><li>Trade publications: each industry has trade publications that sales professionals need to read </li></ul><ul><li>Join trade associations: many salespersons join trade associations to gain access to potential buyers </li></ul>
  15. 15. Telemarketing <ul><li>Telemarketing: the practice of marketing goods and services through telephone contact </li></ul><ul><ul><li>To identify buyers and generate contact lists for sales staff </li></ul></ul><ul><ul><li>To qualify prospects </li></ul></ul><ul><ul><li>To verify sales leads generated by other methods </li></ul></ul><ul><ul><li>To conduct follow-ups </li></ul></ul>
  16. 16. Direct Response and Sales Letters <ul><li>Direct response advertising: often features inquiry cards or information requests via mail or telephone </li></ul><ul><li>Sales letters: send sales letters to decision makers, then follow up </li></ul>
  17. 17. Website <ul><li>Websites provide cost-effective way for sales professionals to: </li></ul><ul><ul><li>Project personal image </li></ul></ul><ul><ul><li>Provide additional information </li></ul></ul><ul><ul><li>Generate leads from visitors to site </li></ul></ul><ul><ul><li>Present product information </li></ul></ul><ul><ul><li>Establish e-mail lists </li></ul></ul>
  18. 18. Computerized Databases <ul><li>In-house databases: your firm may already have a comprehensive database; sometimes referred to as the “house list” with details on customers, purchase patterns, and so forth </li></ul><ul><li>List sources: wide range of precise lists available from variety of sources </li></ul><ul><li>See www.infoUSA.com </li></ul>
  19. 19. Computerized Databases <ul><li>Purchasing databases or lists can be costly; price usually set on cost-per-thousand names </li></ul><ul><li>Not all relevant databases are equal; some “pull” better than others </li></ul><ul><li>Pull is the percentage of the list resulting in qualified prospects or actual sales </li></ul>
  20. 20. Cold Calling <ul><li>Simply calling prospects without referrals </li></ul><ul><ul><li>New salespeople rely on these as they haven’t built referral base </li></ul></ul><ul><ul><li>Must be strategically planned </li></ul></ul><ul><ul><li>Prelude to in-person appointment </li></ul></ul><ul><ul><li>A way to introduce yourself and your company to a prospect </li></ul></ul>
  21. 21. Networking <ul><li>Making and profiting from personal connections </li></ul><ul><li>Networking guidelines </li></ul><ul><ul><li>Meet as many people as you can </li></ul></ul><ul><ul><li>Tell them what you do </li></ul></ul><ul><ul><li>Do not do business while networking </li></ul></ul><ul><ul><li>Offer business card </li></ul></ul><ul><ul><li>Edit contacts and conduct follow-ups </li></ul></ul>
  22. 22. Three Types of Networks FIGURE 9.2
  23. 23. Educational Seminars <ul><li>Provide opportunity to showcase product without pressuring to buy </li></ul><ul><li>Require extensive preparation </li></ul><ul><li>Start value-added process </li></ul><ul><li>Can attend or present at industry sponsored seminars or offer your own </li></ul>
  24. 24. Non-Sales Employees <ul><li>Non-sales personnel can be valued source of leads </li></ul><ul><li>Prospecting not necessarily exclusive task of sales force </li></ul><ul><li>Non-sales personnel often need training and incentives </li></ul>
  25. 25. Combination Approaches <ul><li>Salespersons generally rely on combination of prospecting methods </li></ul><ul><li>Some methods have higher yield than others </li></ul><ul><li>Important to use CRM technology to help maximize efficiency </li></ul>
  26. 26. Discussion Questions <ul><li>If you were selling ACT! contact management software, how might you develop a prospect list? </li></ul><ul><li>If you were a personal investor, how might you develop a prospect list? </li></ul><ul><li>If you worked for an international shipping company, how might you develop a prospect list? </li></ul>
  27. 27. Qualifying Prospects <ul><li>Key time-saving criteria: </li></ul><ul><li>Does the prospect need my product? </li></ul><ul><li>Can prospect make the buying decision? </li></ul><ul><li>Can prospect pay for the purchase? </li></ul><ul><li>Will anyone close the sale? </li></ul>
  28. 28. Organizing Prospect Information <ul><li>Prospect as an individual </li></ul><ul><li>Prospect as a business representative </li></ul>
  29. 29. Prospect Information <ul><li>Harvey Mackay suggests 66-question customer profile. </li></ul><ul><li>See it at: </li></ul><ul><li>mackay.com </li></ul>
  30. 30. Prospecting and Sales Forecasting Plans <ul><li>Important to balance time and organize contacts: </li></ul><ul><li>Prepare a list of prospects </li></ul><ul><li>Forecast potential sales volume for each new account, by product </li></ul><ul><li>Carefully plan the sales route to minimize time and cost </li></ul>