1. BMGT 204: Sales Strategies and Techniques
Chapter 6: Prospecting: The Lifeblood of Selling

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. 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. 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. Some Prospect,
Some Do Not
•
Many organizations do not
prospect
•
Examples are large consumer
goods firms as General Mills*
and Colgate*

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. 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. Steps Before the Sales Presentation
•
Prospecting > appointment > planning
•
Rule of thumb
•
40% preparation
•
20% presentation
•
40% follow-up

9. Prospecting
Obtaining an appointment
Preapproach planning
Exhibit 6.2: Before the
Sales Presentation

10. Prospecting–The
Lifeblood of Selling
•
Prospect – qualified person
•
Prospecting – Identifies
potential customer
•
Lead – only know name

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. Planning a
Prospecting Strategy
•
Prospecting requires a strategy
•
A skill that can be constantly
improved

13. http://www.youtube.com/watch?v=RmOcFund1AM

14. Prospecting Methods
•
E-prospecting on the Web
•
Individuals
•
Organizations
•
Cold canvassing
•
Endless chain – customer referral
•
Orphaned customers
•
Sales lead clubs

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. Exhibit 6.5: The Processing
System Within a
Telemarketing Center

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. 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. The Prospect Pool
Leads
Referrals
Orphans
Your customers

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. Exhibit 6.8: The Referral
Cycle:
When to Ask for Referrals

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. 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. 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. 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