4.03 A Pre-sales activities to facilitate sales presentations

Define the following terms: prospect, prospecting, lead, referral, endless chain, center of influence, bird dogs, cold calls

Prospect – a potential customer Prospecting – looking for potential

customers Lead – someone interested in your

product(s), synonym for “prospect”

Terms to Know

Define Cont.

Referral- a customer referred by another

Endless chain- one customer refers another who refers another who refers another…

Center of influence - a person recommending you to your target market.  Usually this person has a lot of influence over the people that you want to meet.

Bird dogs – point out the buying customers

Cold calls – contacting leads that have not expressed any interest in your products

Prospecting

Sources of prospects Employer’s customer list Customer contacts with the company

▪ Online, Walk-ins, telephone calls, written letters, etc.

Purchased customer listsWhich salespeople should prospect

All sales people who must grow sales How prospecting can help salespeople

Increase contacts and sales

ProspectingDescribe methods of prospecting.

Endless chain:This method is most effective in development of prospects of intangibles like investments and insurance. (Referrals)

Personal Observation Method:Prospects are everywhere. (also called eyes and ears method)

Prospecting

Prospecting Methods continued Cold Canvas/Calling Method:

Calling in person door to

door or from a list without an appointment

Direct Mail and Telephone Method

Sending a direct mail flyer or phoning from a list

ProspectingProspecting Methods continued

Center of Influence Method: Asking a dominant member of a

group to use or endorse your products

Bird-dog Method: ‘Bird dog’ is the nick-name given to

those persons who visit houses at a definite interval. (paper delivery, UPS or FedEx delivery person) They can provide demographic information to sales people.http://www.preservearticles.com/201103164570/8-useful-methods-of-prospecting-used-by-successful-salesmens.html

Prospecting Tips

How to construct a prospect list Keep track of contacts, build a database

How to use a prospect list Assign proper salesperson to make

contact

Importance of maintaining accurate prospect lists

Increase odds of completing a sale, decrease chances of annoying potential customers

Prospect on a regular basis to replace lost customers.

Qualifying a lead

Why salespeople need to qualify their prospects To know what products the customer is interested in buying To identify potential products

Reasons that some salespeople fail to qualify prospects Takes time and research

Criteria prospects need to meet in order to be qualified Interest in the product, means and willingness to buy, has

the authority to buy Good credit rating

How to qualify prospects prior to meeting with them Look at previous orders, read notes on prior contacts, send

information forms that the customer fills out

Qualifying a lead

How to qualify a prospect’s need for a product Research and/or ask questions

How to qualify a prospect’s means and willingness to buy a product

Meet with the salesperson Discuss timing of the sale, where are they in making a

buying decision

How to qualify a prospect’s authority to buy a product

Ask assumptive questions, “At what level will the decision to buy our product be made?”