Prospecting: The Only Way To Discover Sales Gold - Sales Management
Construction Equipment Distribution magazine is published by the Associated Equipment Distributors, a nonprofit trade association founded in 1919, whose membership is primarily comprised of the leading equipment dealerships and rental companies in the U.S. and Canada. AED membership also includes equipment manufacturers and industry-service firms. CED magazine has been published continuously since 1920. Associated Equipment Distributors
Home         About Us         Media Kit         Subscribe         Previous Issues         Search Articles         Meet the Staff        AED Homepage

CED Menu

Arrow Home
Arrow About Us
Arrow Media Kit
Arrow Digital Subscription
Arrow Search Articles
Arrow Meet the Staff
Arrow Trade Press Info
Arrow AEDNews

Premium Sponsor:

SECTION: Sales Management

Questions or feedback?
Contact Kim Phelan at (800) 388-0650 ext. 340.

Prospecting: The Only Way To Discover Sales Gold

Written By Roy Chitwood

Article Date: 12-01-2005
Copyright (C) 2005 Associated Equipment Distributors. All Rights Reserved.

Successful salespeople know they must be willing to do the things that are necessary even if they dislike doing them.

I’ve never met a salesperson who enjoys making cold calls. However, I’ve also never known a salesperson who didn’t have to. Cold calling is one of several techniques a successful salesperson uses to prospect for new business opportunities. The process can be arduous, but it is vital since only a small percentage of all business leads turn into qualified prospects and only qualified prospects turn into happy customers.

Developing the habit of prospecting – daily – is crucial.

We first make our habits and then our habits make us: Set aside a specific time each day to focus on your prospecting efforts.

If you’re just beginning your sales career, you can expect prospecting will comprise a substantial portion of your day. However, if you don’t spend the time necessary to find prospects, you will not have many customers.

Understand the type of customer you’re looking for by developing a profile of the type of individual, organization or company that could benefit from your product or service. Be as specific as you can, identifying characteristics that distinguish your customers from those of your competitors.

A prospect can show up anywhere. However, to make the most effective use of your time, determine where you’re most likely to find your desired prospects.

Leads generated from the Internet via the company Web site or other e-mail inquiries can provide you with a lot of “suspects.” Although there may be a very high percentage of these inquiries that don’t pan out, there is still gold to be found in properly mining these suspects to unearth solid prospects.

Once you’ve identified the appropriate target, your next step is to establish where you’re most likely to find them. Focus on the specific type of prospects you’re looking for by developing a network of associates that will lead you to them. Your networking activities might include local or national trade associations, or other industry business groups.

Read local newspapers and trade journals to keep informed of business developments that indicate a need for your product or service.

Contact businesses in industries similar to those of your current clients. Share your track record with them as well as benefits your customers are enjoying. Also, don’t be afraid to contact your former customers. Find out why they’re no longer buying from you and ask what you can do to regain their business.

Warming Up To Cold Calls

Now that you've found the people you're looking for, determine which prospecting technique will be the most effective to reach them. Begin by cold calling or doing face-to-face prospecting.

However, before attempting to make a cold call or setting up a face-to-face appointment, do your homework. Find out who the decision maker is in the organization and direct your call to that person. If you cannot reach the decision maker on your first call, ask for someone who has that person's ear and can discuss the needs of the company and problems they might currently be experiencing. Learn as much as possible about the company so you will be prepared when you finally make contact with the decision maker.

Averaging a cost of $100 to $500 each, the sales call is the most expensive prospecting method. In this time of low margins, it is vital to do everything you can to obtain a significant return on your company's investment.

When making a cold call, whether on the phone or in person, your opening remarks must not only grab the prospect's attention but they should convey your sincere interest in satisfying their needs.

Because the cost of the average sales call is a significant investment, many companies rely on the less expensive method of telemarketing to qualify prospects. It's estimated that nearly 7 million people in the United States earn their livelihood in this field, the highest percentage of which are involved in inside sales. The telephone is a cost-efficient way to cover lots of territory, so use it for everything from arranging a meeting to closing an order.

The benefit of setting up an appointment by phone is that your prospects will already know who you are when you arrive. It is more difficult to establish rapport over the phone, but it is still possible if you have the right attitude.

Introduce yourself and your company. Be enthusiastic, warm and friendly, but also brief and to the point. Ask if the prospect has a moment and if this is a good time to talk. If you're interrupting, offer to call back at a more convenient time.

Ask For Referrals

Finally, another effective prospecting technique is acquiring referrals. Your most promising source of leads is referrals from your satisfied customers, who are usually delighted to be of assistance since you've been such an asset to their businesses.
When you ask your customer for a referral, request the name of a specific business acquaintance. Then you will know exactly who to contact and the prospect will be more receptive since they know the person who recommended you. The call will be similar to the one used for telemarketing. Again, start by introducing yourself and your company. To spark their interest and capture your prospect's attention, mention the name of your client who made the referral, and state the benefits they have achieved from your product or service. Finally, close by asking if your prospect would be interested in achieving similar benefits for their company.

Whether you utilize face-to-face calls, networking, telemarketing or referrals to find and qualify your prospects, it is important to develop the habit of prospecting on a daily basis, using the techniques that work best for you.
Without getting into the habit of prospecting, you won't be able to determine who really is a qualified prospect and without qualified prospects you'll have no customers. Be alert to business opportunities that may arise in any situation. Set prospecting goals for yourself. Most importantly, remain patient and be persistent in all your prospecting efforts.


[ TOP ]

Article Categories:  Management  »  Sales