Effective Inquiry Management - Sell Your Products - Global Sources

Effective inquirymanagementBook two in the Global Sources Effective Export Marketing series

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Introduction

To succeed in today’s competitive export environment, itis imperative to reach the right buyers, with the rightmessage, at the right time. And, to win buyers’ orders,you must do this more effectively than your competitors.

To help you improve your chances of winning orders frominterested buyers, we offer you this guide: GlobalSources Effective Inquiry Management.

This guide will help you respond more professionally tobuyer inquiries and clearly communicate your UniqueSelling Points (USP) to buyers so that they choose to buyfrom you, rather than your competitors.

While the focus of this guide is on managing buyerinquiries, the fundamentals of effective communicationand marketing principles hold true for other business-to-business channels.

This is one in a series of Global Sources Effective ExportMarketing Guides. These guides help support ourmission to create and facilitate global trade betweenbuyers and suppliers.

When you work with Global Sources, you can beconfident that our professional export marketingservices set international quality standards. You areassured that our quality multimedia channels willdeliver your company’s USP to buyers worldwide – andhelp you realize the best return on your investment.

For further information on how we can help you growyour company, please contact your Global SourcesAccount Executive.

“ I have made severalinquiries to differentcompanies indicatingmy desire to purchasetheir products. Not oncehas any representativefollowed up on mye-mail! ”President, importing company

Contents

Section 1 – The importance of inquiries 1

Section 2 – Better inquiry management 6

Step 1. Grading inquiries 7

Step 2. Replying to inquiries 9

Step 3. Managing your inquiries 15

Creating value for buyers and suppliers 20

Section 1 – The importance of inquiries

Buyer inquiries are valuable sales leads. 2

Manage them effectively and you can turnmore of these leads into purchase orders...

1 Effective inquiry management

What is an inquiry?An inquiry is a Request for Information (RFI) from apotential buyer about your products and company. It isa valuable sales lead. The information in the response yousend (response to RFI), and responses from yourcompetitors, will help buyers decide whether to buyfrom you or not.

Why inquiries are valuableMarketing and advertising are only the first steps towardsincreased sales. For your marketing campaign to result insales, you must respond quickly and professionally to RFIsfrom buyers.

A prompt, professional reply guarantees that buyers willconsider your company fairly along with your competitors.

Buyers will only consider those firms that have given themthe complete information they need to make an intelligentpurchasing decision. If you do not reply to RFIs, you haveno chance of selling your products to interested buyers.

The role of inquiries in the buying processThe buying process is long and complicated. It starts wellbefore a decision to place an order is made.

First, buyers need to gather as much information aspossible about potential suppliers and the products theyoffer. Their RFIs may be for catalogs and other informationabout companies that offer the products or services thebuyer needs. Or, if buyers have already viewed a supplier’scatalog online, RFIs may be for product availability orother details.

It is important that suppliers give buyers the completeinformation the buyers require.

Buyers have to compare

suppliers, products, and

prices. A lot of money is

involved and a bad choice

can be disastrous for both

the company and the

person responsible.

The importance of inquiries


Using the information provided by suppliers, buyerscompare companies to see which can best meet their needs.Buying decisions can take a long time, especially if a lot ofmoney is involved. A purchase decision might have to beapproved by several people, all busy with various projects.

The time to make a purchase decision is likely toincrease if:

• The buying company is big

• The product is expensive

• The product is a new line for the buyer

• The order is large

It takes time for buyers to compare suppliers, products andprices. Don’t forget: A lot of money is involved, and a badchoice can be disastrous for both the company and thebuyer responsible. Buyers do not want to invest thousandsof dollars only to find out they could have bought a betterquality product for a lower price with faster delivery fromanother supplier.

Therefore, it is to your advantage to reply promptly to thebuyer with complete information.

How buyers inquireBuyers can inquire direct to suppliers using electroniccommunication, e-mail, phone, fax and post. RFIs sentusing these tools are genuine sales leads. However, thesetools differ on their cost and the amounts of time before theinquiry reaches you.

More and more buyers now rely on electroniccommunication and sourcing because it saves them vastamounts of time and money. Electronic communication is


transmitted in seconds at a fraction of the cost of longdistance phone and fax. Weeks are saved when catalogs areviewed online, rather than having buyers wait for them toarrive by mail.

Electronic communication helps suppliers convert leads tosales faster than ever before. Its cost is also extremely low.Compare it to the cost of sending an RFI by phone, fax orpost.

Buyers keep their costs down to a minimum throughoutthe inquiry process. They will therefore contact you usingthe most efficient, method.

In the following sections are three steps to help youmanage your inquiries more effectively.


Why buyers send inquiries to suppliers

Source: Did You Buy? Inquiry Follow Up Study, Global Sources

54.9%

67.0%

57.1%

42.9%

38.5%

27.5%

24.2%

17.6%

3.3%

5.5%

To look for a replacement/additional supplierfor a product currently being purchased

To collect information for immediate(within 3 months) purchase of a product not

currently being purchased

To collect information for future(over 3 months) purchase of a product not

currently being purchased

To build a reference file for a possible, futurenew product category

Manufacture a product/offer OEM services

To keep up-to-date with productspecifications from other suppliers for a

product currently being purchased

To consider importing a product currentlybeing purchased locally

To keep track of competitive products

For reference only, with no intention to buy

Other


Section 2 – Better inquiry management

Step 1. Grading inquiries 7

Criteria by which to grade leads vary amongcompanies and industries. What is your company’sgrading system?

Step 2. Replying to inquiries 9

It is important to provide your prospects with theinformation they require. This will help buyersdecide whether to buy from you or not...

Step 3. Managing your inquiries 15

To maximize your sales opportunities, be proactive andfollow up on all inquiries...


Step 1. Grade your salesinquiries

As soon as you receive an RFI, have your sales managergrade it. Leads should be graded into at least threecategories:

A – Hot leads B – Good leads C – Future prospects

Factors to consider when grading RFIsWhat are the criteria by which to grade leads? This willvary among companies and industries, and your skill willdevelop with experience. Here are some things to consider.

1. Urgency of the inquiry: How was the inquiry sent?

• Telephone • E-mail • Post

• Fax • Electronic inquiry2. Content of the inquiry:

• Specific • Generic

Has the buyer inquired about a particular model? Has hespecified color, quantity, price and delivery terms?

3. Information about the buyer, such as:

• Type of business

• Annual sales volume

• Country to which he wants you to export

• Expected size of order

• When he plans to place an order

In many companies, the methods for determining whichinquiries require priority sales force or distributor attentionare not systematic, accurate, or objective. There are manyvariables.

Incoming e-mail

can all look the same,

but could be from very

serious buyers –

you must read every

e-mail to discover

opportunity.


Your company needs clear criteria to grade RFIs. Meetwith your marketing and management staff. Clearly definea grading system that is suited to your company. However,keep in mind that one of the most important steps ofeffective inquiry management is to reply to all RFIspromptly.

How the buyer Time to Cost Urgency ofinquired reach you request

Urgent inquiries are hot sales leads

Telephone Immediate Very high Highest

Electronic inquiry Seconds Very low Very high

E-mail Seconds Very low Very high

Fax Minutes High Very high

Post 7 to 21 days Low Low


Step 2. Reply to all salesinquiries

Reply to all inquiries promptly, even if only to say thatyou do not wish to sell to the inquirer at this time.

When you reply promptly, a buyer will have a favorableimpression of you and your company (or at least he won’thave a bad impression). Even if he does not buy from youtoday, he is more likely to consider you for his future needsbecause you were responsive to his inquiry.

If you require time to answer all of a buyer’s questions,reply to him immediately, letting him know that you havereceived his inquiry. Tell him that you will reply to hisquestions in detail. Give him a specific date by which youwill reply in full.

If you think your company will not be able to handleadditional orders at this stage, reply to the buyer with a“thank you” note. Remember to always give an explanationso that he will be guided accordingly.

If you require more information about the buyer or hiscompany, reply immediately with your questions. Tell himthat for you to better reply to his inquiry, it would be veryuseful if he would provide you with specific details suchas:

1. Type of business

2. Annual sales volume

3. Country to which he wants you to export

4. Expected size of order

5. When he plans to place an order

Today, busy buyers do not have the time to wait aroundfor your reply. Business is more competitive than ever

If you do not reply to

inquiries, you have

no chance of selling

your products to

interested buyers.


How the buyersent the inquiry

Level ofurgencyof inquiry

Replyexpected

Telephone Highest Immediately

Electronic Very highWithin 12

hours

E-mail Very highWithin 12

hours

Fax HighWithin 24

hours

Post Low Within 1 week

before and buyers have more options available to them.As retailers put more pressure on their merchandisers(your customers) to reduce lead time and offer more newproducts, buyers have a heightened sense of urgency.

The following pages tell you how you can benefit fromthis urgency by being responsive to buyers’ needs.

Communicate by telephoneWhen a buyer telephones your office, writedown the caller’s name, number, and productinterest and add to your database. Rememberto log the call. Make sure that the person incharge of handling telephone sales inquiriesis trained to professionally respond to a


buyer’s questions. Ensure that they have allof the required information close at hand.

Communicate by e-mailE-mail no longer gives your company acompetitive advantage. It’s mandatory justlike your telephone. If you don’t have e-mail,you are at a distinct disadvantage.

When you receive an inquiry from a buyerby e-mail, you should reply to the buyerwithin the same business day.

When a buyer sends e-mail, he expects animmediate reply. As an international buyer,he also knows if you are in another timezone, so he realizes it may take a while foryou to respond. However, if he does not hearback from you within the day, he will expectto have your reply when he checks his e-mailfirst thing in the morning.

Offer even better service and increase youropportunities: check and reply to your e-mailtwice a day.

Communicate by faxIf a buyer contacts you by fax, replypromptly. Fax is very expensive, especiallywhen compared to an electronic messagingsystem and e-mail. By faxing his inquiry toyou, the buyer is indicating that his requestis urgent. So fax back within 24 hours withcomplete details.


If you cannot provide the answersimmediately, fax to inform him that youhave received his inquiry and tell him whenyou will get back to him. And, as always, dowhat you promise.

Communicate by postIf the prospect sends an inquiry to youby post, you should mail detailed productinformation to him within a week. Materialsshould be sent by first class mail. Usingcheaper mailing rates can be slow,unreliable, and will reflect badly on yourcompany.

Even if the request is not for your exacttype of products, still reply. As buyersoften handle many product lines, they maybe interested in your products at a later date.They may also know someone who needsexactly what you offer.

Reply to all RFIs with complete informationAlways include a personalized cover letter. This shows thebuyer that you are serious about doing business with him.

It helps improve the chances that the right person will seeyour materials. It also gives the buyer your name, whichmeans a lot more than an impersonal company name.

It is important to provide your prospects with enoughinformation to evaluate your products and your companyadequately.


No response

or a late response

means no sale.

Your response package should include1. A personalized cover letter which thanks the buyer for

his interest, mentions when and how you received hisRFI, answers his questions, and introduces yourcompany

2. Complete information on the products or capabilitiesinquired about – either in electronic format or in aprinted brochure

3. Pricing information for each item

4. Reference to your website with URL

5. Complete contact information: your e-mail address,phone and fax numbers, and address


About your products

Complete productspecifications

Large, clear colorpictures

Features, functions andbenefits

Applications

Colors, sizes, materials

Styles and options

Minimum order

Shipping and packingdetails

Delivery options

Price

Payment terms

About your company

Your workforce

QC procedures

Latest company news

The size of your factory

Trading services

Equipment

Special capabilities

Tradeshow participation

Agents andrepresentatives

Information buyers need

Quality and safetystandards

Code of conduct

OEM services

Delivery lead time

R&D capabilities

Management practices

Other major customers


Step 3. Manage your salesinquiries wisely

Often it takes

repeated efforts

to win an order,

but the results can

be highly profitable

for those who are

persistent.

Sales inquiry database managementDon’t expect that every inquiry will lead to an order.Because you have little way of knowing which initialinquiries will bring results and which ones won’t, beingtoo selective is risky. Sending replies, electronic catalogsor brochures does not guarantee that you will receive aflood of orders, but not sending responses guarantees thatyou will not receive orders.

The inquiries you receive from Global Sources form a veryvaluable database of potential customers: All active buyers.

Some companies spend tens of thousands of dollars peryear just to acquire lists of potential buyers. You can createyour own list of qualified prospects with the RFIs that youreceive.

Persistence paysEven if you respond effectively to initial inquiries, notevery buyer will place an order. This is not a realisticexpectation. Also, don’t ignore a buyer just because hedoesn’t buy from you the first time. Think of them as along-term business opportunity.

Be proactive. Use your valuable database of buyers’names to:

• Follow up with more information at a later date

• E-mail or send electronic messages to selected buyersin your database when you put new products online

• Refer buyers to your website to view your entirecatalog


• Mail offer sheets to buyers who are interested inproducts similar to yours

• Show other items you offer to buyers who havepurchased your excess stock

In your letter to these buyers, mention that you sentinformation to them previously (give the date) in reply totheir RFI about a particular product (be specific). Say thatyou hope the information was useful to them. Tell themyou have enclosed details about your latest productoffering, and would like to supply to them now.

Also request that buyers provide updated information onwhat products they are now sourcing. This time, they maybe interested in a different part of your product line or anew product that you now offer.

If you receive an RFI for products other than exactly whatyou sell, still respond and offer your products. Manybuyers source across product lines.

Also consider other advertisers. If they manufacture, theymay need your products. Most makers look for new,reliable suppliers of manufacturing supplies and othercomponents.

Keep your complete database of potential customers up-to-date about your new products and other lines. Replyeffectively to all inquiries. You never know what buyerswill need to source next.


It takes repeated efforts to win an order, but the results canbe profitable for those who are persistent. Purchasingdecisions take time and sourcing is an ongoing process.

Buyers’ action three months after inquiring to supplier advertisement

Source: Did You Buy? Inquiry Follow Up Study, Global Sources

53.1%

65.7%

53.1%

31.3%

25.0%

12.5%

6.3%

Plan to place an order

Placed an order

Information filed for futureconsideration

Currently considering whether to buythis product

Category information passed along forothers to review

Information filed for reference only

Others


Other profitable tipsAggressive suppliers reply promptly to inquiries and usethem for follow-up marketing. However, not all companieshandle inquiries well. Many potential suppliers are noteven considered by buyers because they don’t handleinquiries effectively.

Remember, buyers are too busy to wait around for theinformation they require to make a purchasing decision.Buyers definitely will not seek out suppliers who don’teven bother to reply to their inquiry.

To help you convert more leads into sales, make sureyour staff:

1. Train to efficiently handle incoming inquiries. Makesure they have polite, professional telephone manners.You never know, the next caller might be a big buyer

2. Check for electronic inquiries and e-mail sales inquiriesat least twice a day

3. Log all incoming leads and note the source

4. Reply promptly with complete information. A promptreply tells buyers that you are eager and able to startbusiness

5. Follow up

Remember: If you do not have the complete informationavailable, still reply immediately. Tell the buyer when youwill provide the information. And, as always, follow up aspromised.


Creating value for buyers and suppliers

Global Sources’ mission is to create and facilitate 20

global trade between buyers and suppliers, byproviding the right information, at the right time,in the right format.


Since Global Sources was founded in 1971, we have beenstrong proponents of effective communication betweensuppliers and buyers worldwide.

The objective of this is to create the best businessopportunity for trade partners.

Today, our commitment and focus remain unchanged, butwe employ multiple channels to facilitate communicationand business growth. For suppliers, Global Sources:

1. Increases supplier’s sales volume (Purchase Orders)and maintain or increase price points

2. Increases supplier’s brand and company recognition

3. Keeps suppliers’ products in front of the right buyercommunity at all times

4. Provides to suppliers current demand information andnew ideas from our large, diverse group of internationalbuyers

Global Sources is uniquely positioned to deliver this valueto you. Why? Because we have 34 years’ experience and agrowing community of buyers who prefer Global Sources.

For buyers, we meet their needs for vertical-specific,multiple-country sources in the media of their choice.

For consultation on how we can help you meet yourbusiness objectives, please contact your AccountExecutive.

Creating value for buyersand suppliers


Stand out from competition throughProfessional Export Development Programs

Since 2002, Global Sources has launched a series ofProfessional Export Development Programs with the aim ofgiving China exporters the information and techniques theyneed to suceed in today’s competitive global market.

Senior executive-level short training course

• Excellence in Export Marketing

Exclusive short training courses specifically designed forsenior executives of China-based export businesses

Objectives: Help attendees develop and implementexport marketing strategies applicable toChina’s business environment to improvetheir export competitiveness

Highlights: Combine classic international marketingtheories with China-based exporters’practices

Meet face-to-face with volume buyers to fullyunderstand their needs

One-day export skill training course

• Managing Inquiry

Objectives: Help professionals to effectively manage andrespond to buyers’ inquiries, ensuringgreater return on investment

Highlights: Combine practical theories with case studies

Formalize daily experiences into systematicpractices

• Integrated Marketing & PSCe

Objectives: Broaden export marketing professionals anddecision makers’ horizons and help themdevelop effective export marketing strategies

Highlights: Combine world’s leading marketing theorieswith effective e-tools

• Managing Trade Show Participation

Objectives: Help export managers provide services thatbest meet buyers’ needs before, during andafter the trade show to ensure greater returnon investment

Highlights: Practical trade show participation techniquescompiled from buyers’ feedback

For more information on upcomingexport training courses, visitwww.education.globalsources.com

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Effective Inquiry Management - Sell Your Products - Global Sources

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