how to effectively qualify sales prospects
DESCRIPTION
One of the easiest traps for us to fall into when sales prospecting is trying to sell to everybody. Or at least trying to sell to everybody that gives us their time. The reality is that regardless of what you sell, not everybody fits well with what you have to offer. Or they might fit well but it might not be the right time for them to be able to purchase from you. Or you are not talking to the right person in the organization. When any of these types of situations occur, if you are not aware of that there is not a very good chance of things going anywhere, you could stand to waste you valuable time if you continue to try to sell to the sales prospect. To help with this, an excellent best practice can be to include some qualifying questions, or prequalifying questions, into your sales pitch. Not only can this help you to assess whether it makes sense for you to invest your valuable time, it can also help to create engaging and productive conversations when you have qualifying questions at the core. In this training video, we talk about qualifying and how to develop a good list of qualifying questions.TRANSCRIPT
Qualifying Prospects
Sales Training
Michael Halper
What is Qualifying
• Assessing prospects in two areas:1. How well they fit with what you have to offer
2. How likely they will be to purchase
• Performed two ways– Researching the prospect
– Asking good questions
Why Qualifying is Critical
Time is Limited and Valuable•Only 40 hours in the week•Need to spend time prospects that have a high probability to purchase
Control is Limited•You can’t control prospects you talk to •You can control which prospects you talk to•Improves deal and pipeline management
Knowledge is Power•Uncovers pain•Produces better leads
Relationships are Key•Makes a better impression•Decreases prospect’s guard•Makes sales activities more conversational•Builds rapport
Qualified Prospect vs. Unqualified Prospect
Qualified Prospect
Need to Purchase
Authority to Purchase
Ability to Purchase
Intent to Purchase
Unqualified Prospect
No Need to Purchase
No Authority to Purchase
No Ability to Purchase
No Intent to Purchase
Needs to be medium to strong in all Can have any of the following
Unqualified Prospects Types
No Need to Purchase
•Authority to purchase– Contact is key decision maker
•Ability to purchase– Budget approved and allocated
•Intent to purchase– Genuine interest
•Need to purchase– Current system/process working great
Unqualified Prospects Types
No Authority to Purchase
•Need to purchase– Pain, manual processes, outdated systems
•Ability to purchase– Budget approved and allocated
•Intent to purchase– Genuine interest
•Authority to purchase– Contact is low in the organization
Unqualified Prospects Types
No Ability to Purchase
•Need to purchase– Pain, manual processes, outdated systems
•Intent to purchase– Genuine interest
•Authority to purchase– Contact is key decision maker
•Ability to purchase– Business has no funding available for a
purchase
– Business just purchased something
– Business locked into a long-term agreement
Unqualified Prospects Types
No Intent to Purchase
•Need to purchase– Pain, manual processes, outdated systems
•Authority to purchase– Contact is key decision maker
•Ability to purchase– Budget approved and allocated
•Intent to purchase– Not seriously shopping
– Favorable toward other vendors
2 Step Qualifying Process
Step 1 – Soft Qualifying
•To make sure it makes sense to meet and keep talking•Takes place in first contact
Step 2 – Hard Qualifying
•Identify if you can consider the prospect and lead are real •Takes place in first meeting
Soft Qualifying
Focus on two key areas
1.Current state – what the prospect is doing in the area that you help
– Processes, systems– People– Vendors– Contracts
2.Level of satisfaction – how are things going
– Great– Good– OK– Could be better
3.Organizational details – Are you talking to the right person
Soft Qualifying
Current State
•Goal:– To identify what the prospect is doing in the area where your products impact– What are the current systems, processes, vendor agreements, employee details, etc.?
•Example Questions:– What are you currently using to manage your inventory? – When did you all implement that system?– Are you locked into a contract with your current provider?
•Assessing the prospect:– Strong: The prospect is not doing or using anything – Medium: The prospect’s current contract is expiring soon – Weak: The prospect recently bought something – Weak: The prospect is locked into a long-term contract
Soft Qualifying
Level of Satisfaction
•Goal:– To identify how things are going in the area where your products impact– Are things great, good, OK, or could be better?
•Example Questions:– How do you feel about the level of service from your current provider? – How do you feel about your ability to manage inventory levels with your current system?– Is there any functionality that you need that is not provided by your current system?
•Assessing the prospect:– Strong: Things could be better – Medium: Things are OK – Weak: Things are great or good
Soft Qualifying
Organizational Details
•Goal:– To identify if the prospect is in the right area of the organization
•Example Questions:– Are you involved in the management of the supply chain?– Is this an area that falls under your responsibility?– Is this an area that impacts you at all?
•Assessing the prospect:– Strong: The prospect is the key person that oversees the area that your product impacts – Medium: The prospect is in the area that your product impacts but at a lower level – Weak: The prospect has nothing to do with the area that your product impacts
Hard Qualifying
Focus on four key areas
1.Need to Purchase– how bad does the prospect need to make the purchase
2.Ability to Purchase – how accessible is the money
3.Authority to Purchase – how much purchasing power does the prospect have
4.Intent to Purchase– how serious is the prospect
Hard Qualifying
Need to Purchase
•Goal:– To identify whether the prospect truly needs what you are selling or if it is more of a want
•Example Questions:– What happens if you do not do anything and do not make a purchase or make any changes?– What improvements will you see if move forward with this purchase?– Is there at date when this purchase needs to be made?– What happens if the purchase is not made by that date?– What is the time frame that the project needs to work along?
•Assessing the prospect:– Strong: Noticeable negative impact if there is no purchase – Strong: Prospect needs to purchase something by a certain date – Medium: Noticeable positive impact with purchase – Weak: Can keep doing OK without a purchase
Hard Qualifying
Authority to Purchase
•Goal:– To identify how much purchasing power the prospect has
•Example Questions:– What is the decision making process?– What parties will be involved in making the decision?– What functional areas (departments) will be impacted by the purchase?– Who is the ultimate decision maker?– Who is the person that will need to sign the agreement/contract?
•Assessing the prospect:– Strong: The prospect is the only person needed to approve the purchase– Medium: Prospect makes the decision but has to get approval – Weak: Prospect does not make final decision
Hard Qualifying
Ability to Purchase
•Goal:– To identify whether the prospect is able to make the purchase from a budget/money standpoint
•Example Questions:– Is there a budget approved for this project?– What is the budget range that the project needs to fit in?– Have the funds been allocated to this purchase?– What budget (department) will this purchase be made under?– Are there other purchases that this funding may end up being used for?– How does the project fit with other initiatives from a priority standpoint?
•Assessing the prospect:– Strong: Funds are available, approved, and allocated – Medium: Funds are available but will need to be approved – Weak: Funds are not available
Hard Qualifying
Intent to Purchase
•Goal:– To identify how much genuine intent to purchase that the prospect has
•Example Questions:– Why did you take time out of your schedule to meet with us? Why did you contact us?
– What other options are you considering?
– How far along are you with talking with them?
– How do you feel about their solution?
– What do you like about their solution?
– What do you not like about their solution?
– How does their solution compare with what we have to offer?
– Is there a reason why you would choose us?
– If you had to make a decision today, which way would you lean?
•Assessing the prospect:– Strong: The prospect is serious about making a purchase
– Strong: The prospect is only talking with you
– Medium: The prospect is talking to other vendors but is favorable to your company
– Weak: The prospect sees all of the options as equal or leaning toward other options
– Weak: The prospect does not have definitive plans to purchase anything
Messaging Workflow
Product
Value
Pain
Qualify
Objections
SalesScripter
www.salesscripter.com
What do you sell? ___________
How does it help? ___________
What problems do you fix? ___________
What questions should you ask? ___________
1. Asks all the key questions 2. Maps answers to document library
If You Want More Help• The Cold Calling Equation – Problem Solved
– Available on Amazon - $15.95
• Web-based training program– Week 1: Ideal Sales Process and Communicating Value– Week 2: Finding Prospect Pain– Week 3: Ideal Prospect and Qualifying– Week 4: Dealing with Objections and Getting Around the Gatekeeper– Week 5: Building Rapport, Interest, and Credibility– Week 6: Generating Leads and SalesScripter Overview– Week 7: Improving the Connect Rate– Week 8: Inner Game– Week 9: Managing Prospecting Meetings and Managing Sales Cycles– Week 10: Improving the Close Rate and Disqualifying
• SalesScripter– www.salesscripter.com – Walk-through services available
• SalesScripter Demonstration – Every Thursday
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