Most prospecting methods involve approaching a large number of targets and then filtering out prospects based on their response. It is important to capture, track and continue to work on prospects to ensure the best outcome in the long run.

However, to manage a large amount of customer data well, it is essential to:

• Develop or adopt a system to record prospect information
• Monitor the system to manage prospects through to closure
• Assess and improve the system to meet your changing needs

A well-designed system enables you to prioritise prospects based on their value  and  timeframes.  It also ensures that the information is never misplaced or discarded.

At the prospect’s end, it means:

• They get the information they need in a timely manner.
• The sales person dealing with them follows up regularly.
• The details of their discussions with you are never lost.
• They continue to place more trust in the sales person because of the professional and reliable manner in which they are looked after.

Today, a number of Customer Relationship Management (C.R.M) applications enable all of the above and are a must-have for businesses wanting to manage their customer relationships really well.

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Most new sales people begin with a high level of prospecting activity. However when success comes and the volume of their business grows, they often turn into ‘order-takers’ and administrators. Working with existing customers and managing orders involves less rejection and negativity but still takes up valuable time. So, unless there is a set process to prevent them from doing this, they end up making little or no investment into developing new business. It is only when they lose a significant customer and feel the sobering shock of it, that they regret not prospecting more frequently. Without a replacement for that revenue, it takes a while to get back to their earlier level of success.

You can shockproof your revenue! Here’s how:

• Develop a good sales plan and forecast for the next 12 months, with a provision for revenues from new clients
• Create a prospecting plan with two to three methods of generating a lead base
• Set aside a reasonable amount of time to prospect every week without compromise
• Reduce your non-sales tasks by delegating or outsourcing them so that you can invest in building the pipeline
• Track your progress weekly and find an accountability partner to stay on track

If you can do this, you will be prepared when the unexpected happens. And if it doesn’t, your sales will grow even faster! Have an opinion, question or story? Click the link below to share it! We would love to hear from you.

Last week, we looked at a logical and mathematical approach to determining the level of prospecting required to achieve your sales targets. This week, let's look at the critical stages in this approach and tips on how to improve your ratio of success at each level.

Lets start at the top of the sales funnel:

1. Targeting suspects
Target the markets and niches which have a strong attraction to your product or service, rather than using a spray-and-pray approach.

2. Converting suspects to prospects
Highlight ‘what’s in it for them’ (W.I.I.F.T) or the value proposition of your product or service rather than talking about what the product or service is. For example, let’s assume you provide a direct mailing service, which has proven, higher response rates than impersonal mail. Your service enables businesses to generate a higher return on investment from their marketing efforts, or simply put, generates more sales per dollar spent in marketing. You are more likely to get your prospects attention if you talk about how you are helping your customers increase sales rather than telling them about the mailing service itself.

The W.I.I.F.T principle helps you engage your customers better whether it is communicated in spoken, written or audio-visual form.

3. Converting prospects to customers
After engaging your customer, a thorough verification of their needs, motives and expectations puts you in a position of superior knowledge. Knowledge is power. Having gathered the information you need, tailor your offer precisely to the customer's requirements to make it compelling and persuasive.

4. Increasing customer transaction values or growing customer revenue
Once you earn the right to become a supplier to your customer, it is important to go beyond the day-to-day ordering of your product to further understand their business, its structure, processes and goals. Mapping your product or service range against their departments or potential buyers enables you to plan a better penetration strategy into their company.

In summary, you need to build good prospecting plans and develop your sales skills to enjoy great success.

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Too often, I hear sales people and managers who miss sales targets, either complain that the targets are too high or blame the markets. My belief is that we over estimate market forces and underestimate our ability to affect results.

The first and foremost element in our control is prospecting activity. Here are some essential principles for prospecting:

1. It must be a priority
2. It must be targeted
3. It must be at a pre-determined level
4. It must be recorded and measured

Here is a step-by-step approach to determine the level of prospecting required for yourself (business unit or individual level). Lets assume that you run a digital print shop that needs to achieve $100,000 in sales this month. How much prospecting is required?

• A: Monthly sales target - $100,000
• B: Average invoice/order value - $2,000
• C: Number of average orders required to reach target (A/B) - 50
• D: Prospect (quotation) conversion to sale ratio - 4:1
• E: Number of prospects required (DxC) - 200
• F: Suspect (target) conversion to prospect ratio - 1:5
• G: Number of suspects to be targeted at 20% conversion rate (ExF) - 1000

Note that the above figure is to generate 100% new business. Next week, we will take a look at tips on improving at critical stages in this approach.

Don’t be daunted by the 1000 suspects that need to be targeted each month. This can be broken down into manageable chunks of 50 suspects to be targeted a day. This is what good prospecting looks like and it is a precursor to great success.

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