7-1. 7-2 prospecting—the lifeblood of selling chapter 7 copyright © 2004 by the mcgraw-hill...
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Prospecting—The Prospecting—The Lifeblood of SellingLifeblood of SellingProspecting—The Prospecting—The Lifeblood of SellingLifeblood of Selling
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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
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Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
Prospecting—The Lifeblood of Selling
Where to Find Prospects
Planning a Prospecting Strategy
Prospecting Methods
The Sales Process Has 10 Steps
Steps Before the Sales Presentation
Prospecting—The Lifeblood of Selling
Where to Find Prospects
Planning a Prospecting Strategy
Prospecting Methods
Main Topics
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ChapterChapter
77ChapterChapter
77
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
Prospecting Guidelines
The Prospect Pool
The Referral Cycle
Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless E-mail
Prospecting Guidelines
The Prospect Pool
The Referral Cycle
Call Reluctance Costs You Money!
Obtaining the Sales Interview
Wireless E-mail
Main Topics
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The Sales Process Has 10 Steps
6 . Determine the objectives1. Prospecting
3. Approach
2. Preapproach
4. Presentation
5. Trial close
7 . Meet objections
8 . Trial close
9 . Close
1 0 . Follow-up
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Exhibit 7-1: The Selling Process Has 10 Important Steps
10. Follow-up10. Follow-up
9. Close9. Close
8. Trial close8. Trial close
7. Meet objections7. Meet objections
6. Determine objections6. Determine objections
5. Trial close5. Trial close
4. Presentation4. Presentation
3. Approach3. Approach
2. Preapproach - planning2. Preapproach - planning
1. Prospecting1. Prospecting
The sales process is a sequential series of actions
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Some Prospect, Some Do Not
Many salespeople prospect, both those selling business-to-business and those selling to consumers. Examples are:Financial services as life insuranceReal estate
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Compensation for the Salesperson that Prospects is Often
Based upon 100% commissionIf you do not sell, you do not earn
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Some Prospect, Some Do Not
Many organizations do not prospect. Examples are large consumer goods firms as General Mills and Colgate
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Compensation for the Salesperson that Does Not Prospect is Often
Based upon mostly salary with a small bonus and expenses such as car, office supplies paid
If you do not sell you still get paid, but not for very long
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The Prospector Has the Most Challenging Sales Career
This is the “order getter” whoFinds a lead
– Converts into a prospect
– Sells one day,
• And in the future
WOW! That is a challenge
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Prospecting - The Lifeblood of Selling
Qualified prospect is MADMoney to buy?Authority to buy?Desire to buy?
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Exhibit 7-2: Before the Sales Presentation
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Steps Before the Sales Presentation
Prospecting appointment planningRule of thumb
20% presentation
40% preparation
40% follow-up
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Prospecting—The Lifeblood of Selling
Prospect - qualified personProspecting - identifies potential customerLead - only know name
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Where to Find Prospects
Sources may be varied or fewPersons selling different services and goods
might not use the same sources
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Planning a Prospecting Strategy
Requires a strategyA skill that can be constantly improved
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Exhibit 7-4: Prospecting Methods that Work!
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Prospecting Methods
E-prospecting on the WebIndividualsOrganizations
Cold canvassingEndless chain—customer referralOrphaned customersSales lead clubs
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Prospecting Methods cont…
Prospect listsBecome an expert—get publishedPublic exhibitions and demonstrationsCenter of influenceDirect mailTelephone and telemarketingObservationNetworking
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Exhibit 7-5: The Processing System Within a Telemarketing Center
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Exhibit 7-6: Reports From a Telemarketing Centerto Other Marketing Groups Within the Firm
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Prospecting Guidelines
Three criteria are:
1. Customize to each prospect
2. Concentrate on high potential customers fruit
3. Call back on no-buys
Always keep knocking on prospect’s and customer’s door to help them.
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Referrals Are Used in Most
Prospecting Methods
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The Prospect Pool
LeadsReferralsOrphansYour customers
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Exhibit 7-7: Components of the Prospect Pool
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The Referral Cycle
Obtaining referrals is a continuous process without beginning or end
Referral cycle -- when and how to ask for referrals
The parallel referral saleSell the product to personObtain prospect name(s) from person
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The Referral Cycle cont…
The secret is to ask correctly during referral cycleThe preapproach contact phaseThe presentation Product delivery contact phaseService and follow-up contact phase
– Customer service
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Exhibit 7-8: The Referral Cycle: When to Ask for Referrals
Preapproach
Serviceand
follow-up
Prospect
Pool
Productdelivery
Presentation
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Don’t Mistreat the Referral
Mistreatment can have a ripple effectThe mistreated referral tells your customer.
You may lose both!Remember to follow the Golden Rule
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Treat the Referral Like a Customer
Once you sell the referral, and gotten referrals, have the new customer contact the “referring customer” on experience with the salesperson
Now you have two customers giving referralsThis can create an “endless chain of
referrals” quickly filling your prospect pool with only customers and referrals
Now no more cold calling
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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
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Exhibit 7-9: The 12 Faces of Call Reluctance
Think you might suffer from call reluctance?
See if you fit 1 of the 12 classic types identified by researchers George Dudley and Shannon Goodson. They’re listed in order from most common to least common.
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Exhibit 7-9: The 12 Faces of Call Reluctance
1. Yielder - Fears intruding on others or being pushy
2. Overpreparer - Overanalyzes, underacts
3. Emotionally unemancipated - Fears loss of family approval, resists mixing business and family
4. Separationist - Fears loss of friends, resists prospecting among personal friends
5. Hyper-pro - Obsessed with image, fears being humiliated
6. Role rejecter - Ashamed to be in sales
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Exhibit 7-9: The 12 Faces of Call Reluctance
7. Socially self-conscious - Fears intruding on others or being pushy. Intimidated by upmarket customers.
8. Doomsayer - Worries, won’t take risks
9. Telephobic - Fears using the telephone for prospecting or selling
10. Stage fright - Fears group presentations
11. Referral aversions - Fears disturbing business or client relationships
12. Oppositional reflex - Rebuffs attempts to be coached
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Exhibit 7-9: The 12 Faces of Call Reluctance: How to Conquer the Fear
How to Conquer the Fear First and foremost, you must admit to having
call reluctance
Second, determine your call reluctance typeand adopt appropriate countermeasures
Third, follow up, keep plugging, make calls
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Exhibit 7-9: The 12 Faces of Call Reluctance: How to Conquer the Fear
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Obtaining the Sales Interview
Key factor in selling process is obtaining a sales interview
The benefits of appointment makingTelephone appointmentPersonally 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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Summary of Major Selling Issues
The sales process involves a series of actions beginning with prospecting for customersFind prospects to contactObtain appointmentsPlan the entire sales presentation
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Summary of Major Selling Issues cont…
Popular prospecting methodsCold canvasEndless chain methodsPublic exhibitions and demonstrationsLocating centers of influenceDirect mailoutsTelephone and observation
Salesperson must develop ways of getting to see the prospect