ABC s of Selling 10th Edition. Charles M. Futrell
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1 ABC s of Selling 10th Edition Charles M. Futrell
2 Chapter 6 Prospecting The Lifeblood of Selling McGraw-Hill/Irwin ABC s of Selling, 10/e Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
3 6 Chapter 6-3
4 Main Topics The Tree of Business Life: Prospecting The Sales Process Has 10 Steps Steps Before the Sales Presentation Prospecting The Lifeblood of Selling The Leaking Bucket Customer Concept Where to Find Prospects Planning a Prospecting Strategy Prospecting Methods Prospecting Guidelines 6-4
5 The Referral Cycle Main Topics, cont... Call Reluctance Costs You Money! Obtaining the Sales Interview Wireless Helps You Keep in Contact and Prospect 6-5
6 The Tree of Business Life: Prospecting T T T T T T T T T T T Builds Relationships Guided by The Golden Rule, remember: 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 6-6
7 Exhibit 6-1: The Selling Process Has 10 Important Steps The sales process is a sequential series of actions 1. P 2. Preapproach 3. Approach 4. Presentation 5. Trial close 6. Determine 7. objections 8. Trial close 9. Close 10. Follow 6-7
8 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 insurance Real estate 6-8
9 Compensation for the Salesperson that Prospects is Often: Based upon 100% commission if you do not sell, you do not earn 6-9
10 Some Prospect, Some Do Not, cont Many organizations do not prospect Examples are large consumer goods firms, such as General Mills* and Colgate* * products and associated images used for illustrative purposes only 6-10
11 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 6-11
12 The Prospector Has the Most Challenging Sales Career This is the order getter who: Finds a Converts the lead into a Sells one day, and Sells in the too WOW! That is a 6-12
13 Steps Before the Sales Presentation Prospecting > appointment > planning Rule of thumb 40% preparation 20% presentation 40% follow-up 6-13
14 Exhibit 6-2: Before the Sales Presentation 6-14
15 Prospecting The Lifeblood of Selling Prospect qualified person Prospecting Identifies potential customer Lead only know name 6-15
16 Prospecting The of Selling Qualified prospect is to buy? to buy? to buy? Sales Prospecting Funnel All leads and prospects must be considered and filtered through the process before they become qualified prospects 6-16
17 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 6-17
18 Where to Find Prospects Sources may be varied or few Persons selling different services and goods might not use the same sources 6-18
19 Planning a Prospecting Strategy Prospecting requires a strategy A skill that can be constantly improved 6-19
20 Exhibit 6-4: Prospecting Methods that Work! 6-20
21 Prospecting Methods E-prospecting on the Web Individuals Organizations Cold canvassing Endless chain customer referral Orphaned customers Sales lead clubs 6-21
22 Prospecting Methods, cont Prospect lists Become an expert get published Public exhibitions and demonstrations Center of influence Direct mail Telephone and telemarketing Observation Networking 6-22
23 Exhibit 6-5: The Processing System Within a Telemarketing Center 6-23
24 Exhibit 6-6: Reports From a Telemarketing Center to Other Marketing Groups Within the Firm 6-24
25 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 6-25
26 Referrals Are Used in Most Methods canvassing Endless chain customer referrals Orphaned customers Sales lead Public exhibitions and demonstrations Center of influence Telephone N 6-26
27 The Prospect Pool Leads Referrals Orphans Your customers 6-27
28 Exhibit 6-7: Components of the Prospect Pool 6-28
29 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 sale Sell the product to person Obtain prospect name(s) from person 6-29
30 The Referral Cycle, cont The secret is to ask professionally at each phase of the referral cycle The preapproach contact phase The presentation Product delivery contact phase Service and follow-up contact phase: customer service 6-30
31 Exhibit 6-8: The Referral Cycle: When to Ask for Referrals 6-31
32 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 6-32
33 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 6-33
34 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 6-34
35 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 6-35
36 Wireless Helps you Keep in Contact and Prospect Wireless helps keep the sales representative mobile. 6-36
37 Summary of Major Selling Issues The sales process involves a series of actions beginning with prospecting for customers Find prospects to contact Obtain appointments Plan the entire sales presentation 6-37
38 Summary of Major Selling Issues, cont Popular prospecting methods Cold canvas Endless chain methods Public exhibitions and demonstrations Locating centers of influence Direct mailouts Telephone and observation Salesperson must develop ways of getting to see the prospect 6-38
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