Chapter 6: Prospecting Flashcards
Salespeople must find new customers to replace those who:
- Switch to competitors
- Go bankrupt
- Move out of the territory
- Merge with non customers
- Decide to do without a product or service
What does prospecting begin with?
Locating a lead
What are some characteristics of a good prospect?
- Possesses a want or need
- Has the ability to pay
- Has the authority to buy– Firms are delegating their purchasing tasks to system integrators
- Can be approached favorably
- Eligible to buy: -volume - geographic location - exclusive sales territories: Particular salesperson can sell only to certain prospects -House accounts: Large customers that are handled exclusively by corporate executives
What are some common sources of a Lead?
- Satisfied customers
- Endless chain
- Networking
- Center of influence
- Social media
- Other Internet users
- Marketing department
- Shows, fairs and merchandise markets
- Webinars or seminars
- Lists and directories
- Databases and data mining
- Cold calling
- Spotters
- Inside salespeople
- Expertise
- Sales letters
Customers Leads
Salesperson uses online tools like LinkedIn, Facebook, and Twitter to prospect for new customers and maintain contact with existing customers.
Social media leads
Salesperson uses web sites, e-mail, listservs, bulletin boards, forums, roundtables, and newsgroups to secure leads.
Other Internet Use Leads
Marketing Department Leads
Salespeople use the marketing department of their firm to generate leads
Shows, fairs, and merchandise market leads
Sales people use trade shows, conventions, fairs, and merchandise markets for lead generation.
Canvassing method in which a large group of salespeople attempt to make calls on all prospective businesses in a given geographic territory on a specified day.
Blitz
Nonverbal cues given by the buyer that indicate the buyer may be ready to commit; also called closing cues.
Buying Community
Prospecting method wherein the salesperson cultivates well-known, influential people in the territory who are willing to supply lead information.
Center-of-Influence Method
Prospecting method in which a sales representative tries to generate leads for new business by calling on totally unfamiliar organizations; also called cold calls.
Cold Canvass Method
The monetary value of the referral as well as the costs to get and maintain the referral.
Customer Referral Value (CRV)
Information about leads, prospects, and customers.
Database
The use of artificial intelligence and statistical tools to discover hidden insights in the volumes of data in a database.
Data Mining
Prospecting method whereby a sales representative attempts to get at least one additional lead from each person he or she interviews.
Endless-Chain Method
Method that uses a prospect’s geographic location to determine whether a salesperson can sell to that prospect.
Exclusive Sales Territories
Method that uses a prospect’s geographic location to determine whether a salesperson can sell to that prospect.
Extranet
Accounts assigned to a sales executive rather than to the specific salesperson responsible for the territory containing the account.
House Accounts
A prospecting method whereby salespeople evaluate prospects who do not necessarily have a clear understanding of what they need but who are in a state of flux and have been shown to be quite agile in making changes (that is, they are able and willing to act quickly when a compelling case is made to them).
Insight Selling
A potential prospect; a person or organization that may have the characteristics of a true prospect.
Lead
The part of the lead process in which salespeople carefully analyze the relative value of each lead.
Lead Management System
A process for qualifying leads.
Lead Qualification System
