Prospection and Planning the sales call Session 4

Leads
A lead is a person or an organization that may or may not be a true prospect

Steps in the selling process

Prospecting

.............................Lead

Collecting precall information

Making the approach

Discovering needs Making the presentation

Responding to objections Obtaining commitment Follow up

..............Prospect

......Customer

Prospecting
It is the process of identifying & developing a list of potential customers called prospects

Qualifying customers
It is the process of determining whether a lead is in fact a prospect

Cold call
It is a call without a preparation

Functions of prospecting

Prospecting adds new business

Prospecting is for replacing lost business

So, the customer list must be continuously updated

Criteria for a lead to be a prospect

1. 2.

3.
4. 5.

The presence of a need The ability to pay The authority to buy The liability to be approached Eligible to buy volume of purchase

To get 10 prospects you have to contact average 100 contacts out of which 1 person will buy

Many leads do not become prospects

Pareto ratio

20% of customers ------ 80% of sales

The Challenges of Prospecting

5% of unplanned cold calls result in a sale.. roughly 25-30% of preplanned calls produce a sale

Workshop
People will be divided into groups each of them will select a specific industry and then determine how can you generate leads for your company putting in consideration the priority of these ways according to the nature of the industry ????

Sources of leads
1. Satisfied customers 2. Centre of influence method 3. Networking 4. Internet 5. Ads, Direct mail , Catalogs

6. Shows (job fairs)

7. Spotters (employment agencies) 8. Telemarketing 9. Others

1-Satisfied customers (Referrals)

They are the most effective sources for leads

Successful salespeople should be getting about 75% of their new business through referrals from customers

Statistics
One study found that 80%of clients would be willing to give referrals but 20%are ever even asked to do so Also, the study found that one referral is as valuable as 12 cold calls to leads

Sometimes customers are not willing to offer referrals because are afraid of being blamed

2-Center of influence method

2-Center of influence method (Contd)

-This method works best if the center of influence is already a satisfied customer of the salesperson -Centers of influence may never buy

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3-Networking
-it means establishing connections to other people and then using those networks to generate leads -You must make a special effort to move outside your own comfort zone in a social setting

3-Networking (Contd)
Ways:
1. 2. 3.

4. 5.

Collect business cards Talk about yourself in meeting , conferences Wear your badge (name card) so people can read it Engage in conversation with telephone contacts Read relevant journals& newspapers so you have informed about topical issues when conversing with new contacts

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4-The internet

It is the fastest method of generating leads Using websites , e-mail , listservs One advantage of web based promotions is the generation of international leads Successful firms make sure that their sites are listed on the major search engines Banner advertising is ads placed at the top ,sides , or bottom of a web page Extranets that are customized for specific targets

5- Ads, Direct mail , Catalogs

Firms can send mails to potential customers

Ads in trade publications and the reader of the ad can request additional information by calling a tollfree number

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6- Shows

Many companies display their products at trade shows and fairs Salespeople are present to demonstrate products to visitors Then databases are collected

7- Spotters

Salesperson pays someone for lead information The fee sometimes is paid simply for the name of the lead but more often pays only if the lead ends up buying the product or service

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8- Telemarketing

Outbound telemarketing: Telephones are used to generate and qualify leads by the salespeople or inside sales force

Inbound telemarketing : Leads use the toll free number to contact the company e.g. Motorola

Limitations of telephone prospecting

1. 2. 3.

Calls can be annoying Absence of body language It is difficult to attract and maintain the customers attention

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Lists and directories

1. 2.

3.
4. 5.

Telephone directories Chamber of commerce directories Trade publications Club membership lists Professional membership lists

Warning
The purchased lists may have several drawbacks : 1-The list may not be current 2-They may contain inaccurate information 3-People who are on lists may be targeted by many firms

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Planning the sales call

Nobody plans to fail but he fails to plan

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What are the items to be put in consideration on planning anything ?

Planning model
SOST + 4M Situation analysis Objectives Strategy Targets Tactics
Men Money Minutes Measurement

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Planning Tools
Gantt Chart

A bar graph with time on the horizontal axis and activities to be accomplished on the vertical axis. Shows the expected and actual progress of various tasks.

Planning tools
5. A Gantt Chart

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Monthly plan-report.xls

Planning process
Gathering information about the prospect and the firm

Setting the objectives of the call

Making an appointment

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What are the information to be known about the prospect???

Personal
1. 2. 3.

Name Family status Education

4.

Interests (such as hobbies)

Attitudes
1.

Towards salespeople

2.
3.

Towards your company

Towards your product

What are the information to be known about the prospect???

3-Styles
1. 2.

Social style Decision making style

4-Evaluation of products
Product attributes that are important

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Secretaries and receptionists

Secretaries and receptionists in the prospects firm usually are a high source of information So, treat them with respect

4 groups workshop
Tomorrow you are going to visit a very potential customer in his office Before visiting him your manager asked you to prepare a list of 3 possible objectives for that call

1- First state the criteria of ideal objectives ?? 2-Then apply these criteria for the 3 objectives ??

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SMART

objectives

To make our dreams come true, we need to set Specific, Measurable Realistic, Achievable Time frame. Goals provide a sense of direction. Goals focus our efforts. Goals guide our plans and decisions. Goals help us evaluate our progress.

Examples of call objectives

Objectives leading up to the sale:
To have the prospect agree to come to the local branch office sometime during the next two weeks for a hands-on demonstration of the copier. To set up another appointment for one week from now, at which time the buyer will allow me to do a complete survey of his/her printing needs. To inform the doctor of the revolutionary anti-clogging mechanism that has been incorporated in our new drug and have the doctor agree to read the pamphlet I will leave behind. To have the buyer agree to pass my information along to the buying committee with her/his endorsement of my proposal.

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Making appointments

You have to find the right place for the appointment

Making appointments

Choose a place free of distraction for all parties

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Exchanging experience
Can any of you tell us a situation he had in the past in which he could not get an appointment to visit a customer and on brainstorming he got a creative idea to get that appointment ???

Trying to get in? Creativity may be the answer

What should you do when a prospect who you know has a need for your product refuses to meet with you ? May be Creativity is the answer Salesperson set up a meeting to sell his greeting cards to a customer but the customer had to cancel the meeting and never returned the salesperson calls to set up another meeting From conversations with the receptionist the salesperson found that the customer loved golf so he bought some golf balls and sent them to the customer with a card with as I have been unable to reach you I am looking forward to speaking with you soon on the inside of the card His next phone call was successful and he got the appointment and the business

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Secretary s objections?

Im sorry, but Mr. Ehab is busy now.

-What I have to say will only take a few minutes. -Should I call back in a half-hour, or would you suggest -I set up an appointment?

Secretary s objections?

We already have a copier.

Thats fine. I want to talk to Mr. Ehab about our new paper-flow system designed for companies like yours.

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Prospects objections?
Cant you mail the information to me?
Yes, I could. But everyones situation is different, Ms. Susan, and our systems are individually tailored to meet the needs of each customer. Now

Prospects objections?
Well, what is it you want to talk about?
Its difficult to explain the system over the telephone. In 15 minutes, I can demonstrate the savings you get from the system.

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Case study
Caterpillar is number 1 company in the field of heavy construction .Its machines are used to build tunnels , highways ,bridges , airports .. Last week the new Caterpillar salesperson John had his first meeting with Skelly , a buyer from united states steel (USS).The meeting was brief with John just wanting to introduce himself to the buyer During the meeting John was excited to learn that USS was considering buying several new wheel loaders within the next year John asked if he could give a presentation in a month to lay out what Caterpillar had to offer & Skelly agreed 1-What kind of information should John gather about Skelly before his next meeting with him? 2-Which sources can John use to gather the information?

1- Kinds of information

The text lists the kinds of things John should learn. Some examples include:
1.

What is Skellys knowledge about and attitude toward Caterpillar machines What are Skellys career aspirations? What reference sources does Skelly use to make decisions of this magnitude? What do those sources think of Caterpillar?

2. 3.

4. 5. 6.

What is Skellys personality style?

Does Skelly sometimes revert to win-lose tactics in negotiations? To whom does Skelly need to justify the decision?

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2-Sources for information

1.

2. 3.

4.

5.

6.

Look at Caterpillars files to see what activity has taken place in the past. Salespeople Published statistics that indicate activity . These are probably a matter of public record. Information about the firms mission and business philosophy can be gleaned from web site, newspaper articles, annual reports, and company employee newsletters. Skellys secretary and/or receptionist might reveal some more information, but it is doubtful if John can probe him/her much at this stage. It might appear to be spying or snooping. A good source of some information would be operators and supervisors at the mining site who operate the mines current wheel loaders.

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