Developing a Prospect Base

C H A P T E R 9

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C H A P T E R 9

Learning Objectives

• Discuss the importance of developing a prospect base

• Identify and assess important sources of prospects

• Explain common methods of organizing prospect information

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C H A P T E R 9

Learning Objectives (Continued)• Describe criteria for qualifying

prospects• Identify some characteristics that are

important to learn about customers as individuals and as business representatives

• Describe the steps in developing a prospecting and sales forecasting plan

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C H A P T E R 9

Prospecting

Prospecting is a systematic process of identifying potential customers.

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C H A P T E R 9

Prospecting

The prospect base is a list of current and potential customers.

A prospect is a potential customer.

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C H A P T E R 9

Common Causes of Customer Attrition

• Customer re-location

• Business closure or merger

• Buyer leaves due to promotion, retirement, resignation, etc.

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C H A P T E R 9

Improving the Quality of Prospecting

• Increase the number of potential prospects who board the “Ferris Wheel.”

• Improve the quality of prospects.

• Shorten the sales cycle by dealing with “qualified” prospects.

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C H A P T E R 9

Prospecting – The “Ferris Wheel” ConceptReferrals

Friends, family members, and

centres of influence

Directories and trade publications

Trade shows and telemarketing

Direct response advertising and

sales letters

Web sites and computerized

databases

Cold calling, networking, and

educational seminars

Prospecting by non-sales employees

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C H A P T E R 9

Prospecting – The “Ferris Wheel” ConceptReferrals

Friends, family members, and

centres of influence

Directories and trade publications

Trade shows and telemarketing

Direct response advertising and

sales letters

Web sites and computerized

databases

Cold calling, networking, and

educational seminars

Prospecting by non-sales employees

Relationship between customer and salesperson

deteriorates

Business Failure

New buyer buys from another source

Acquisitions and mergers

Customer moves

Death of customer

Customer has only a one-time need for

product

Customer needs change because of

new technology

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C H A P T E R 9

Referrals - The Endless Chain

A Referral is a prospect who has been recommended by a current customer or by someone who is familiar with the product or service. A productive referral begins an “endless chain” of opportunities to prospect for new business.

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C H A P T E R 9

Prospecting for Clients – Canadian Directories

• Blue Book of Canadian Business• Canadian Key Business Directory• Canadian Directory of Industrial Distributors• Canadian Trade Index• Fraser’s Canadian Trade Directory• Polk City Directory• Scott’s Directories

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C H A P T E R 9

Prospecting for Clients –Scott’s Directories

• Scott’s Directories - www.scottsinfo.com

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C H A P T E R 9

Using your Network

Networking is the practice of making and using contacts. It involves people meeting people and profiting from the connections.

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C H A P T E R 9

Using Networking

Tips for Networking• Be focused• Be a listener• Be sincere• Be mobile• Be a joiner• Be sensitive to cultural and physical

differences

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C H A P T E R 9

Search for “Qualified” Prospects

A “qualified” prospect has

• a need for the product or service.

• the ability to afford and pay for the product or service.

• the authority to make a purchase decision.

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C H A P T E R 9

When “Qualifying” Prospects, you should ask

• Are they already buying from you?

• Are they a former customer? If so, why did they stop buying?

• Are they users of your product or service?

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C H A P T E R 9

When “Qualifying” Prospects, you should ask(Continued)

• What is the amount of potential sales?

• Does the prospect have a good credit rating?

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C H A P T E R 9

The Prospecting Plan

• Prepare a prospect list

• Forecast the potential sales volume that might be generated

• Establish a logical territory route