According to Wikipedia, Prospecting is the physical search for minerals, fossils, precious metals or mineral specimens. Prospecting is an organized, large scale effort undertaken by mineral resource companies to find commercially viable ore deposits. Prospecting is physical labour, involving traversing (traditionally on foot or on horseback), panning, sifting and outcrop investigation, looking for signs of mineralization.
Business prospecting is a lot like that. It also involves a search for something precious - customers! It also involves an "organized, large scale effort". It also involves a lot of labour, 'sifting', and constantly being on the lookout for business opportunities. Although not often liked by new business owners, prospecting is an important and necessary activity. You will be able to develop a real partiality for it when you see how it leads to profitable income. Prospecting is the methods you use to find suitable candidates that have a need for your product or services. Once you have identified who your 'Jack & Diane' are, what is your plan to reach them with your message?
An "organized, large scale effort" will enable you to:
*Increase the number of pre-qualified, prioritized prospects
*Increase the effectiveness of initial contacts for new business
*Shorten the time to convert those opportunities to new business.
Here's how:
1. Set Goals. Set S.M.A.R.T. goals, such as how many prospecting visits or phone calls you will make each day or each week. Have a specific objective of how many target customers you will have an engaging meeting with, for each of the next three months. It's amazing what happens when you set goals and remain determined to reach them. "Goal setting is the single most powerful force for self motivation." - Paul J. Meyer
2. Schedule your sales activity. Produce a monthly, weekly calendar indicating time set aside for sales visits. Block off specific time EACH WEEK for your sale activity. Include prospecting visits, delivering flyers, phone calls, etc.
3. Plan for each visit. Make sure your 'sales kit' is complete. Determine what 'sales tools' you need, such as price lists, brochures, samples, portfolio of photos, business cards, promotional items, technical info sheets, order forms, etc. Research the individual prospect before your visit. Develop an impact statement for your company (your primary competitive advantage). Prepare what questions you want to ask. Prepare a brief focused overview of your company and how your product or service will benefit the individual.
4. Work your plan. Successful prospecting requires time, energy and discipline. Build it into your daily or weekly activities in order to reap the rewards that come with gaining new customers. Don't let anything interfere with your organized plan. At the same time, stay flexible, constantly monitor the effectiveness of your campaign, and make adjustments as necessary. Visit each prospect! Start with those in the 'C' categoary. When you are reasonably comfortable with how to craft your presentation (this should only take a couple of weeks), start visiting the 'B' and then the 'A' prospects. As Nike says, Just Do It!
Thursday, August 12, 2010
Thursday, July 29, 2010
When They Keeping Saying 'No'
We sure don't like it when potential customers don't agree to buy from us. Most people don't like rejection: it's hard not to take it personally.
The first step to coping with this is to simply be aware of reality. In many businesses, as few as 4% or less of those on your prospect list are going to say 'yes'. If you were expecting more, knowing this may be discouraging. However, let it encourage you, in that if people keep saying no to your offer, it may not be entirely your fault. However, knowing some of the reasons why they say no can help you to develop strategies to improve your results.
You need to have a complete list of prospects. The more people you call on, the more people will say yes, even if you don't change the percentages of those who say yes.
Are you targeting the right customers? Have you clearly identified who your "Jack and Diane" are? If you are business to business, have you identified the right person within the company? Determine early in your conversation if the person you are meeting with actually has the authority to make a decision: you may want to ask something like, "Who else in your organization will have an impact on any decisions made today?"
Have you taken the time to understand the prospect's unique situation and did you then communicate the value you bring - how you can help them avoid pain or acquire something that will make their lives better? This, of course, is done by asking open-ended questions at the beginning of the converstaion, getting them to open up, share their concerns. Ask things like, "Where does it hurt?", "What would you like to see happen?" Or was your discussion really more of a disseration about all you rmany years of experience, or how you have this amazing technical know-how or special tools; without any solid connection to the client's individual needs? Did you talk too much? It's more important for you to focus on the prospect's needs first rather than your own.
Did you bring all the right 'sales tools'? Samples, testimonials, photos, price lists, etc. Usually when a prospect says no, it's because they don't have enough information to make a good decision. They are afraid of making a wrong decision, so they say no because it's easier.
Near the end of your meeting, how did you ask? Don't come across as a pushy sales person, but you need to actually ask for the order! Once you have clearly identified their needs and communicated how your product or service solves those needs, ask something like, "Do you like what I've shown you?" "Does this make sense to you, so far?"; then "It looks like we have a good fit between what you need and what I do, so would you like us to begin work on Thursday the 12th or Tuesday the 17th?, "Which colour (size, style, etc.) is preferred?, "How many would you lik...? If you simply ask "Do you want to go ahead?" you will usually get "No". One of my favourite questions that can lead to a 'yes' is "Where do we go from here?" When you ask this question, and wait for the answer, it gives you the opportunity to see if you've missed something and/or identify how they want to go ahead.
In summary, target the right kinds of potential clients, ask the right questions to determine needs, clearly communicate your unique selling proposition, then ask for the order and keep trying!
The first step to coping with this is to simply be aware of reality. In many businesses, as few as 4% or less of those on your prospect list are going to say 'yes'. If you were expecting more, knowing this may be discouraging. However, let it encourage you, in that if people keep saying no to your offer, it may not be entirely your fault. However, knowing some of the reasons why they say no can help you to develop strategies to improve your results.
You need to have a complete list of prospects. The more people you call on, the more people will say yes, even if you don't change the percentages of those who say yes.
Are you targeting the right customers? Have you clearly identified who your "Jack and Diane" are? If you are business to business, have you identified the right person within the company? Determine early in your conversation if the person you are meeting with actually has the authority to make a decision: you may want to ask something like, "Who else in your organization will have an impact on any decisions made today?"
Have you taken the time to understand the prospect's unique situation and did you then communicate the value you bring - how you can help them avoid pain or acquire something that will make their lives better? This, of course, is done by asking open-ended questions at the beginning of the converstaion, getting them to open up, share their concerns. Ask things like, "Where does it hurt?", "What would you like to see happen?" Or was your discussion really more of a disseration about all you rmany years of experience, or how you have this amazing technical know-how or special tools; without any solid connection to the client's individual needs? Did you talk too much? It's more important for you to focus on the prospect's needs first rather than your own.
Did you bring all the right 'sales tools'? Samples, testimonials, photos, price lists, etc. Usually when a prospect says no, it's because they don't have enough information to make a good decision. They are afraid of making a wrong decision, so they say no because it's easier.
Near the end of your meeting, how did you ask? Don't come across as a pushy sales person, but you need to actually ask for the order! Once you have clearly identified their needs and communicated how your product or service solves those needs, ask something like, "Do you like what I've shown you?" "Does this make sense to you, so far?"; then "It looks like we have a good fit between what you need and what I do, so would you like us to begin work on Thursday the 12th or Tuesday the 17th?, "Which colour (size, style, etc.) is preferred?, "How many would you lik...? If you simply ask "Do you want to go ahead?" you will usually get "No". One of my favourite questions that can lead to a 'yes' is "Where do we go from here?" When you ask this question, and wait for the answer, it gives you the opportunity to see if you've missed something and/or identify how they want to go ahead.
In summary, target the right kinds of potential clients, ask the right questions to determine needs, clearly communicate your unique selling proposition, then ask for the order and keep trying!
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