A prospect is a potential customer that meets the qualification criteria established by your company. Prospecting is identifying potential customers. A Prospect Base is made up of current customers and potential customers. Use the What if? Analysis and 20:80 Rule. Always have a group of people that can be promoting the importance of prospecting. Every Salesperson must cope with customer attrition:
- Customer may have a one-time need
- Customer may move outside the salesperson’s territory
- The firm may go out of business or merge
- Sales may be lost to the competition
Grad’s Ferris Wheel-Supply
- Increase number of people who board Ferris Wheel
- Improves the quality of prospects
- Shorten the sales cycle by determining which prospects are “qualified”
- Prospecting plans must be monitored continuously for effectiveness
Referrals
- Prospect recommend by a current satisfied customer or one familiar with product or service
- Endless chain: ask a contact who else could benefit from the product
- Referral Organizations: Facilitate networking
- Friends, family members, centers of influence: A person who may influence opinion leaders
Lead Generation, Decreased Directories, Trade Shows/Publications, Telemarketing, Direct Response and letter, website, cold calling, networking, computerized databases
Qualifying Prospects
- Does prospect need my product?
- Does the prospect have the authority to buy my product?
- Does the prospect have the financial resources to buy my product?
- Does the prospect have the willingness to buy my product?
Collecting and Organizing Prosper Information
Sales Data Can be collected and organized into C.R.M. systems such as Salesforce.com, Oracle, NetSuite, and Microsoft.
Prospecting and Sales Forecasting Plans
Important to balance time and organize contacts:
- Prepare a list of prospects
- Forecast Potential Sales Volume for each new account, by product
- Carefully plan the sales route to minimize time and cost
Measurements
Common Types of Sales Goals
- Financial-Current Compensation
- Career Advancement
- Personal Developments-MBA
- Sales Volume
- Sales Call Activity
- Sales Call Expense and ethics
- Profitability
Market Share
Share of Account
- Ancillary Activity-community
- Customer Retention (70:80)
- New Account Generation
- Customer Service-Complaints
- Conversion
Pricing-Elasticity (Change in Market to Market)
Consumer Products: Hormel, P.G., E.J. Gallo, Pharmacist=at execution end of manifesto plan
Retail Price Point. Always protect price point
Strategic Planning Sets The Stage
Benefits of Demonstration
- Improved Communication and retention
- Proof of Buyer Benefits-Proof Devices
- Feeling of Ownership
- Quantifying the Solution
- Value Proposition Revisal
Creative Demonstrators
- Make features and Benefits Appealing
- Must gain attention and increase the desire for the product
- Create different ways of looking at problems and solve
Customize the Demonstration
- Use custom-fitted demonstrations
- Relate to specific customer needs
Choose Right Setting
- Demonstration location makes a difference
- Control Environments free from distraction
- Rehearse, Rehearse, Rehearse
- If you don’t rehearse you cant succeed