CHAPTER 7
PROSPECTING

• 	THE CONCEPT OF PROSPECTING
  	A salesperson without prospects is out of business. A salesperson without prospects can no more close a sale than a surgeon without a patient can operate. Presenting a professional appearance, giving an impressive presentation and closing like a master are not enough to prevent failure if too little attention is given to prospecting. You must have someone to whom to tell your story -- someone who wants to buy and can buy. If your closing ratio is lower than you like, the major problem may be that you don't have enough good prospects -- not that you are a poor closer. Prospects are everywhere - find the best
  “I’d rather be a master prospector than be a wizard of speech and have no one to tell my story to.” -Paul J. Meyer

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• QUALIFYING THE PROSPECT
  Moving from a "lead" to a qualified prospect
  Lead	Just a name
  Prospect	Researched for need, money authority
  Qualified Prospect	Evaluated prospect along with personal information
  Qualify with the MADDEN Test
  M oney Research credit before A pproachable Can you get an appointment D esire You may have to create or discover D ecision-Maker Often missed by salespeople E ligible May be committed already our company may turn down N eed Always a win-win

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• Class “A” Prospects

  Referral from a person the prospect respects Has the ability to make a buying decision Has the ability to pay for the product or service You have all the personal information you need to make a good presentation

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• METHODS OF PROSPECTING
  Why we lose old customers (Attrition)
  Customer's company goes broke Competitor takes your customer Customer moves or dies Merger or downsizing Customer-salesperson relationship deteriorates
  Referrals Special Article by David Frey
  Have referral make the initial contact Learn how to ask for a referral Get letter of introduction Have referral call the prospect Referrals tend to be horizontal	Why people don't give referrals
  	Can't think of anyone Object to giving referrals
  Centers of Influence
  Believes in what you are selling Is influential with a number of people Is willing to give you names The names given to you are at least partially qualified prospects, more than just leads.
  Group Prospecting
  Give a brief presentation to a group Follow up with interested prospects	Trade shows Speaking engagements Seminars
  Planned Cold Calling
  At least one out of seven will be receptive. Treat cold calls as a supplement. Don't neglect others by too much of this. Preplan Cold Calls Develop effective, memorable door openers Limit Waiting Fifteen minutes Keep busy while waiting Remain Enthusiastic
  Direct Mail or Fax
  Prospects do read well targeted direct mail Watch quality of purchased lists Create your own newsletter		Mailing is only as good as the list
  		Membership rosters City directories Yellow pages White pages Religious groups Past customers
  Joining Civic Groups
  Carefully select groups	Are members the type of people that you need Do you believe in the group's mission
  Assume leadership responsibilities Become highly visible Set contact goals for each club meeting Keep files on each contact made Use "re-meet " goals to help you develop closer relationships Reach out to new members Use active listening Look for sales opportunities
  Networking - active cooperation i.e. "tips"
  There are formal groups that you can join Sharing information makes good sense
  Using Directories - can be gold mines if used correctly
  Sales and Marketing Management - buying power index Moody's Industrial Manual Poor's Register of Directors and Execs The Dun and Bradstreet Reference book The Thomas register of American Manufacturers Contacts Influential

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• Observation
  Prospects are everywhere	Always be looking Read the news Trade journals

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• Company Initiated Prospecting

  Telemarketing Telephone Human calls Computer generated calls Fewer leads Lower cost

  Advertising Direct mail Newspaper Other media Past Customers Go over list of inactive accounts Trade Shows Selecting the right show On the spot vs. lead generation Display planning Staffing the booth Pre show training Getting high visibility Managing information collected at show Planning follow up Web Sites For Prospecting Streamline the sales process Joint marketing with other firms

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• The 12 Faces of Call Reluctance
  Why do we hate to use the phone? Are you one of these classic types Identified by George Dudley and Shannon Goodson. Listed in order from most common to least common
  Yielder	Fears intruding on others or being pushy.
  Overpreparer	Overanalyzes Underacts.
  Emotionally unemancipated	Fears loss of family approval Resists mixing business and family.
  Separationist	Fears loss of friends Resists prospecting among personal friends.
  Hyper-Pro	Obsessed with image Fears being humiliated.
  Role rejecter	Ashamed to be in sales.
  Socially self-conscious	Intimidated by upmarket customers.
  Doomsayer	Worries, won’t take risks.
  Telephobic	Fears using the telephone for prospecting or selling.
  Stage fright	Fears group presentations.
  Referral aversions	Fears disturbing existing business or client relationships.
  Oppositional reflex	Rebuffs attempts to be coached.
  Conquering Call Reluctance From behavioral scientist and call reluctance expert George Dudley.
  Admit that you have call reluctance.	Acknowledgment is a major step toward recovery, but it’s not an easy move. Denial is the most frequent companion of call reluctance The problem is sometimes hard to identify. Salespeople “typically know something is wrong, but they may not know what it is,” Many who do know they are experiencing sales call reluctance don’t feel secure admitting it to management, because many sales organizations still tend to feature cultlike, unrealistic emphasis on maintaining a positive attitude.
  Determine your call reluctance type	Clearly and specifically identifying your fears or negative thoughts. Tackle them head-on, one at a time. Curbing call reluctance is like breaking a bad habit.
  Adopt appropriate countermeasures	Token reward systems may be useful Relaxation techniques may help	Thought Zapping
  		Place a rubber band around your wrist. When a negative thought intrudes you snap the rubber band sharply Immediately conjure up a positive mental image of yourself
  Follow up Keep plugging Make calls.	Taming call reluctance is work It may take continuous effort. “Don’t confuse a change in your outlook with a change in the number of contacts you initiate with prospective buyers,” Dudley warns. Call reluctance may actually be a sign of commitment to selling. “Salespeople who are not motivated or goal-focused can never be considered call reluctant,” says Dudley. Salespeople with authentic call reluctance care very much about meeting prospecting goals. “You simply cannot be reluctant to get something you don’t want in the first place.”

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• MANAGING PROSPECT INFORMATION

  Initial Recording of Leads

  Record all basic information If you don't have a computer then use index cards

  Classification of Prospects

  A simple method for manual systems Class A - You have enough information to make a presentation Class B - You need more information to make a presentation Class C - a "lead" you don't know much more than the name Sophisticated, multi dimensional classifications can be done with a computer

  Scheduling Contacts

  Contact prospects using a prioritized list Keep a tickler file.

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• USING TECHNOLOGY TO MANAGE PROSPECT INFORMATION
  Personal Databases
  Corporate Databanks
  Improving Communications	Salespeople now have access to the most current information
  Links	Sales Logic Article about Gold Mine Article About ACT!

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• SUMMARY
  	Prospecting keeps you in business Ten methods have been given. Referrals and center of influence are the best

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