The Importance of Prospecting

• Increased activity in the marketplace creating more “opportunities” via RFPs  

• Resistance to prospecting

     – No perceived need 

• Selling gaps

     – Commodity buy vs. solution/consultative selling approach

     – Huge hurdle for relationship and/or consultative sales people

• An environment ripe for competitors willing to buy the business

• More competition

• Larger territories in many industries

• Greater customer awareness 

• Customers are busier, more protected and less accessible

• Procurement is playing a bigger role

• More consultants

• Mergers/acquisitions and cross-pollination of competitor’s people as they move from company to company creates appearance of “sameness”

• Many more unsolicited RFPs 

 

• No competitive advantage a majority of the time

• A level playing field (procurement must be so proud!)

• Limited opportunities to build relationships

• Difficulty differentiating

• A commodity buy – with all things being equal decision comes down to who is cheapest or who is showing/ guaranteeing the most savings

What can we do?

• Change our selling paradigm and get there first more often in order to:

     – Create interest

     – Go thru a discovery process 

     – Gain knowledge (competitive advantage)

     – Build credibility 

     – Gain a coach/champion

     – Influence the process

• If so – how?

     – Make prospecting a Standard Operating Procedure and priority

     – Have the discipline to execute

 

• Networking with current and former clients

• Referrals

     – Clients

     – Business partners

• Getting involved with associations (committees, sponsorships, presenting at Conferences etc)

• Targeted and customized email campaigns/mailings/handwritten notes

 

• Physical cold calling

• Trade shows (exhibiting)

• Mass mailings

• Phone cold calling 

 

 

• Four years in sales (many more in sales leadership where all my teams were able to achieve a 50% or better close ratio over time)

• 29 sales (average 7/year)

• $44M in revenue (average $11M/year)

• 70% close ratio

• “Chased” 2 RFPs - lost both

• High % of sole-sourced sales (more than 1/3) 

• How?

     – Consistent and targeted prospecting

     – Got there first 90% of the time

     – Became a business resource for the client through the process

     – Strived to always maintain a full funnel/ pipeline 

 

In my experience prospecting is a critical success factor for someone in Business Development/Sales but it’s the first thing to go by the wayside when a sales resource gets busy. The people that have long term success understand the importance of prospecting and are disciplined enough to set aside time consistently to prospect – even when they have a full funnel! 

 

• Market Analysis to identify industry and regional trends/issues and potential targets

• Understanding your existing customer profiles 

• Knowing your competition (Where are they? Strengths? Weaknesses?)

• Developing a “right customer” profile

• Identifying decision makers and obtaining contact information for “right customers”

• Creating a targeted prospecting plan customized for “A” and “B” prospects

• And then having the discipline to execute