Chapter I: What is Prospecting?
This question is often partially explained, incorrectly explained, or confused. Three words that have multiple interpretations and synonyms; “What is Prospecting?” Is prospecting finding new business? The answer is yes. We prospect to find new customers to supplement our current customer base and afford us new business opportunities. We use a multitude of resources, including video prospecting, social media, emails, and text messages, to identify suspects that may lead us to these prospects. We examine the markets or industries where our current customer base exists to lead us to new suspects that may be their competitors or purveyors. They too may have the need for our product or services and often are willing to entertain an appointment via phone, video call, or in person. The search will also vary depending on the sales force deployment strategy. Geographic deployment strategies, for example, allow for segmentation by market and vertical market in addition to city, state, or area. Industry-specific deployment allows the assignment of industry or market specialists who only handle customers from a specific industry or vertical market.
An example is company XYZ Corporation, a prominent manufacturer of plastic for automobile windows that sells to Johnson's Automotive, a premier auto distributor in the area. While speaking with your customer at Johnson, the conversation leads you into a discussion about the construction of the windows. The owner at Johnson tells you about an accident that transpired at the dealership where a large window in the showroom was shattered. Knowing your company’s products, you tell him that you manufacture a window similar to the windows in the car that would not shatter and therefore would be safer in the showroom. The owner, understanding the value of your product, gives you the name of the window supplier and recommends that you contact them through LinkedIn to offer your services. This is an example of a customer referral to a vertical market.
Is prospecting engaging with leads or existing active accounts through social media, emails, and text messages? Again, the answer is yes. Current customers may have the opportunity to lead you to additional people within their organization that may have additional business for you. The introduction or referral from your existing customer makes it a “warm call” versus a “cold call.” Warm calls are received much better and allow you to use a previously established relationship to take the edge of establishing a new one. As in the previous example, an interaction on social media or a direct message to an existing account can lead to a referral within the same organization, a purveyor, a competitor, or a contact at another affiliated organization that can utilize your services or product.
Just think; growing up, when you wanted to meet that guy or girl at school or at the party; it was much easier to break the ice if you were introduced by a mutual friend or acquaintance. The same principle applies in business.
We are all saddled with the daily task of trying to get through the things on our To Do List and do whatever we can to avoid unnecessary interruptions. We have gatekeepers and email filters to screen our messages and deter those pesky people that would begin by asking for a few minutes of our time, but as we know; a few minutes would turn into an in-depth conversation, followed by an attempt to set an appointment and additional calls or messages to develop that infamous relationship that every salesperson searches for.
Networking and operating within the nucleus of your existing accounts, leveraging social media platforms like LinkedIn and Twitter, and using email marketing campaigns often open the door to a gold mine of potential leads.
Is it re-engaging with old customers that have not been re-solicited in a long period of time through social media, emails, or text messages? Yes, rekindling relationships is a very lucrative source of business and is far less expensive than starting from scratch and cultivating a new business relationship.
Past or old customers have a point of reference with your company. The experience, if positive, may allow you to reopen or re-establish the account to active status by fulfilling a new need, better servicing, fulfilling their past need with an improved product, or just proving that the product they may have previously changed to was not better than the product you had been offering. Many times, a customer would have come back to your company, but no one had solicited their business in a very long time. They did not feel a sense that your company valued their business or relationship. A message or connection request on social media, a personalized email, or a text message from an old friend is often welcome and appreciated. Many companies spend hundreds and thousands of dollars to uncover new customers, desperately in search of that magic list of customers that has not yet been discovered by their competitors. The sobering truth is that this list does not exist. If new accounts are uncovered, the number is small, and the cost of securing a new account is five times more expensive than maintaining an existing relationship or rekindling a past relationship that, for whatever reason, has been dormant for the last few years.
Prior customers have experience with your organization, and many of them have had a good experience. Sales, unfortunately, have a high turnover rate, and therefore relationships often fall through the cracks with the transition. Try searching for the social media connections of these old contacts, checking archived emails, or looking in the CRM system to that area that has not been frequented due to turnover in staff or emphasis on a new direction.
Is prospecting engaging with existing customers on social media, through emails, or via text messages? This is the fourth and final yes to our questions. Existing customers, as stated earlier, are the key to new customers in their organization, industry, or just within their business or social network. Prospecting is the means to an end, the end being developing and maintaining sustained customer relationships. Most existing customers continue to work with us because they are happy or satisfied with the service we provide. What better opportunity will we ever have than to ask for someone else within their organization or within their network of contacts who they think may benefit from our services? Think about the last time you purchased a product or service from someone who took their time and gave you outstanding service. How did you feel? Most of us who experience exemplary service look forward to the opportunity to refer our family, friends, or associates who may have a similar need to the individual or company that gave us the outstanding service.
A Fortune 500 or large company often holds many opportunities for us to sell our product or services, and often we stop the solicitation process with a few contacts. For example, we may do business with the accounting area of a company with great success and frequent orders or requests for our product or services. The question that often goes unasked or unanswered is, “Are there other departments or individuals within your organization that may have a need for our product or services?” Most companies have additional departments such as sales, human resources, engineering, information technology, and others that may have the same needs as our current customer. An introduction or referral from this person and an endorsement of your level of service will get you in the door and off to a positive start. This changes the cold call into a warm call and stimulates interest in what you have to say.
So, you ask, what is prospecting really? Prospecting is the process of utilizing all the resources available to you, including modern-day techniques such as video prospecting, social media, emails, and text messages, to find new business. That business may come from any of the above sources and a host of others. We must remain hungry sales detectives to continue to uncover new prospects and open the door to additional business opportunities. There are many reasons salespeople come up with nothing to prospect: “Prospecting is all cold calls. Nobody likes rejection, and I certainly don’t feel like it today!” The cold call label placed on prospecting deters many great salespeople. The fear of rejection keeps many of us from realizing our true destiny. The key to overcoming this fear is to diffuse it at all costs.
Many years ago, I was given this inspirational message from a former boss who mentored and molded me as a sales professional. It was called the Truth:
80% of All Sales are Made After the Fifth Call
48% of All Salespeople Make One Call and Quit
25% of All Salespeople Call Twice and Quit
17% of All Salespeople Call Three Times and Quit
10% of All Salespeople Keep Calling
80% of All Sales are Made by 10% of All Salespeople
When you put it in these terms, it really allows you to see that spending the time in the prospecting mode, leveraging modern-day techniques like social media engagement, video prospecting, personalized emails, and text messages, will pay the dividends that we all so desperately seek. The issue is perseverance and dedication. The Truth says that the dedicated salesperson is the one that finds success.
In today's digital world, the landscape of prospecting has evolved. Salespeople now have an extensive array of tools and strategies at their disposal to find and connect with potential customers. By embracing these modern prospecting techniques and procedures, you can more effectively reach your target audience and build lasting relationships that result in successful sales. Keep in mind that the key to prospecting is a combination of persistence, innovation, and adaptation. By continually refining your approach and leveraging the latest technologies, you can unlock new business opportunities and drive sales success.
In order to stay ahead in the game and maximize your prospecting potential, it's essential to continually learn and adapt to the latest trends and strategies. Here are some additional modern prospecting techniques and tips to help you effectively connect with prospects and generate new business:
Utilize LinkedIn: LinkedIn has become an indispensable tool for sales professionals. It allows you to research and find potential prospects, engage with them, and build a professional network. LinkedIn Sales Navigator is a powerful tool that can help you identify and engage with potential prospects more effectively.
Content marketing: Create valuable content that addresses the needs and interests of your target audience. This content can be in the form of blog posts, articles, whitepapers, or videos. Share this content on your website and social media platforms to attract prospects and establish yourself as an expert in your industry.
Webinars and online events: Hosting webinars or participating in online events allows you to connect with potential prospects in a more personal way. Share your knowledge and expertise and use these events as an opportunity to generate leads and showcase your products or services.
Personalized video messages: Instead of sending a traditional text-based email, create a personalized video message to grab your prospect's attention. This can help you stand out from the competition and create a more memorable experience for your prospect.
Leverage social media: Use platforms like Twitter, Facebook, and Instagram to engage with your target audience, share valuable content, and generate leads. Social media advertising can also help you reach a larger audience and drive more prospects to your website or landing page.
Collaborate with influencers: Partner with industry influencers or experts who can help promote your products or services to their audience. This can help you tap into new networks and generate leads from prospects who trust the influencer's recommendations.
Utilize marketing automation: Marketing automation tools can help you streamline your prospecting efforts by automatically sending personalized emails, tracking prospect engagement, and managing leads.
Track and analyze your efforts: Regularly review the performance of your prospecting efforts to determine which strategies are working and which need improvement. Adjust your approach accordingly to maximize your results and ensure you're using the most effective techniques for your target audience.
By incorporating these modern prospecting techniques into your sales process, you can improve your chances of connecting with potential customers and generating new business opportunities. Remember, the key to successful prospecting is persistence, innovation, and adaptation. Stay up-to-date with the latest trends and technologies, and continually refine your approach to ensure you're making the most of your prospecting efforts.