The Four Characteristics Needed to Excel at Sales Prospecting

• Characteristics of the product or service: What is unique about it?  What distinguishes it from our other products?
• What will it do for the customer?  For example, how will it help the customer to reduce their costs?
• Who are your competitors? Notably, what distinguishes your product/service from the competitor?
• Who is the target market?  In addition to selling this new product/service to our existing customer base, does it open up some new markets for us?

• Relationship-building skills (customers are more likely to buy from you if they like you and trust you)
• Questioning skills (obviously, so that you can identify the customer’s needs but, just as importantly, so that you can assess if this is a good opportunity for you or not)
• Selling on value (including the monetization of your value, whenever possible)
• Overcoming likely objections such as "I’m happy with my current provider”
• Elevator speeches (to help you get the first appointment and make a favorable first impression)
• Identifying and gaining access to the right person
• Varying your selling style 

Do you have a Well-Prepared Elevator Speech?

1. Which strengths would be most relevant for this customer and decision-maker? (value statement)
2. If you know who the competitor is, highlight a relevant differentiator. In other words, why should this customer select your company instead of one of your competitors? (value statement)
3. What have your best customers who are similar to this person’s company said about why they appreciated or valued your services? (credibility statement)
4. What can you say to demonstrate that your company and you personally have expertise in this market segment or product/service? (credibility statement) 

Does Customer Satisfaction Guarantee Referrals?

• Do you know who you should be asking for referrals?
• When should you ask for a referral?
• Are you uncomfortable or not sure how to ask for referrals? 

1. Focus your request by describing some relevant characteristic of the desired referral that will help the other person to narrow down his/her list of names.  For example, cite the type of decision-maker or a desirable geography/location or other demographic.  "Would you mind introducing me to your counterpart, Dave Smith, in the Northeast Division?” or "Would you mind introducing me to the other 3 U.S. Sales Directors within your company so I can present my services to them backed up by your referral?”
   
   
2. Don’t be greedy.  Ask your customer to refer only a couple names to you.  Paradoxically, you get more referrals by asking for fewer! "Are there one or two Sales Directors who attend your quarterly meetings that you’d feel comfortable in helping me out with a referral? Your testimonial to my product and service would help me establish credibility.”  
   
   
3. You should sound matter-of-fact and conversational. Don’t make it sound like this is uncomfortable or awkward for you.  "Since it would help your sales efforts, what if we were able to provide customer service training to the Customer Care and Technical Support staff at your company?  Would you mind introducing me to those managers?”

Prospecting & The Power of One: The High Performing Salesperson

In today’s business environment, most organizations now have to deal with factors such as market maturity, customer consolidation and increasing global competition.   These industry challenges make prospecting for new business even more difficult then ever, and all the more necessary for growth.  Most sales managers claim that their sales people spend too much of their time in their comfort zone and not enough time prospecting.

Just take a moment to think about the power and the results of one great inventor or one successful businessperson, one charismatic leader, or even the power of one amazing idea.  People like Thomas Edison, Henry Ford, Amelia Earhart, Martin Luther King, and Bill Gates come to mind.

The Power of One Great Sales Person 

The results generated by one single high performing sales person can be remarkable.  Managers report that their top performing salespeople are not only highly skilled at their jobs, but they generate a disproportionate amount of sales results, such as profit growth and number of new accounts. Don’t underestimate the power of one great salesperson!  Now how can you get your entire sales team to do this?   

The Power of One Great Coach 

When surveyed, most sales managers cite that it is outside the comfort zone of their sales people to prospect for new business. As such, a sales manager must coach and develop the prospecting capabilities of each sales person.  Just because a sales person does a great job at account management, does not necessarily mean that this same person is comfortable and competent at business development.

Research demonstrates that frequent coaching by a manager correlates to a significant increase in the skill and strategy level applied by a sales person.  Managers need to coach their salespeople in two ways.  First, they need to help the salesperson develop a strategy and plan which includes clear business goals and targets.  Second, they need to ensure that their salespeople have the necessary capabilities and skills needed for success.

What Are The Most Common Mistakes Made by Sales Professionals?

Sales people often make the same common mistakes when prospecting.  First, they don’t spend nearly enough time on prospecting for new business.  And when they do put forth the time and effort, they tend to go after the wrong types of prospects.  Sales people need to know how to identify and gain access to the best prospects.

Not All Prospects are Created Equally

A common mistake is to go after the wrong prospect.  Not only will this waste time and money, but if you do succeed in making a sale you will likely regret it.

• The prospect has a genuine need or interest for your service or product 
• The potential size of the sale justifies your selling effort and resources 
• The timing is right (in terms of the "decision process" and deadline for decision) 
• Your contact(s) have the authority to buy 
• The money or funding is available in the budget 
• The prospect values what you provide and is not just interested in price   

Another mistake is to rely on non-productive and outdated prospecting methods.  Sales people need to understand and become proficient at creative and more productive ways to prospect, rather then relying on conventional methods such as cold calling over the telephone and just stopping in (what some firms call "smokestacking”).

The best sales professionals use creative methods to prospect, such as:

1. Stay active at industry associations (join a committee, give a speech, network, etc.
2. Ask for referrals from current customers and others
3. Use the Internet to research and identify the best sales opportunities
4. Send targeted mailings and emails
5. Conduct informational seminars (not a sales pitch, but an educational event) 

Preparation for prospecting sales calls also differentiates the best sales professionals.  Average sales people ‘wing it’ whereas the best sales people prepare and practice what they will say, notably their "elevator speech”. Sales people who can describe in two minutes or less the value that their company, products and services can offer a potential customer are more likely to gain access and advance the sale. Conversely, those who have not formulated and practiced their value statements and  "elevator speeches” are not likely to get a second appointment.

Similarly, since you may only get one chance to speak with a new prospective client, it is essential to prepare and ask the right questions in order to qualify the sales opportunity.  The best sales professionals ask the best questions. It sounds like common sense, but it is not common practice.   

Please visit our Sales Prospecting and Business Development workshop page for more information.  

Not All Prospects Are Created Equal

"...there are two great myths that destroy margins -
all customers are created equal and
all customers should be treated the same."
                                                - STAR client

The most common prospecting mistake is to go after the wrong prospect.  Not only does it waste time and money, but if you do succeed in making a sales you will likely regret it.

An effective business development strategy should always be to win more and better quality new business.  The following process will help you to identify, gain access, and win new business with the right accounts.

Set Clear Goals to Reflect "The Ones Worth Winning"

How do you know who is worth winning?  You must target your best markets and prospects.  The first step in the prospecting pipeline is to set clear goals.  Average salespeople only set quantitative goals such as:

• 5 new accounts this quarter
• New sales revenue of $250,000 this year

However, they fail to consider the qualitative difference of those accounts.  Are all accounts equally valuable?  Or are these accounts equally profitable?  Business development and sales strategies today utilize smart segmentation.  Focus on your best clients and prospects and deselect the least profitable ones.  A better way to state the above goals would be:

• 5 new accounts this quarter with a minimum gross margin of X% at each account
• New sales revenue of $250,000 this year in market segment XYZ (or for product/service ABC)

A Great Prospect

What are some key differentiating factors that distinguish a great lead or prospect?

1. The prospect has a genuine need or interest for your service or product.  You want to avoid being "shopped."
2. The potential size of the sale justifies your selling effort and resources.  One tip:  you shouldn't always go after the largest accounts.  Quite often, it is more profitable and easier to win mid-tier accounts.
3. The timing is right (in terms of the "decision process" and deadline for decision).  How urgently does this customer need your product/service?
4. Your contact(s) have the authority to buy.
5. The money or funding is available in the budget.
6. The prospect values what you provide and is not just interested in price.

Visit our Sales Prospecting and Business Development workshop page for more details.  

Asking for Referrals

Asking for a referral works best if you specify the type of person that you hope to be referred to, AND you match your request to fit the person you are asking. Below are three examples: 

1. If I'm speaking to a Sales Manager at a large company: "Can you think of 2 or 3 other sales managers in your firm that might also benefit from Negotiation Skills training for their sales team?"
2. If I'm speaking to a higher level sales executive (VP of Sales, for example) and I find out that the VP is responsible for another group that could benefit from a training workshop: "Would you be willing to refer me to a few of your distributors? It would be a win/win if we could teach their salespeople the same skills that your direct salespeople are learning."
3. If I'm speaking to an HR Manager who is well-networked: "Would you be able to give me the names of a couple other HR managers at other companies who would be interested in the type of training that we provide?"