Prospecting is the engine that drives the sales in your business and unless you keep that engine tuned up and running efficiently, it’ll start sputtering, making weird noises, and eventually will break down. And like any car, when the engine stalls, it doesn’t matter how pretty the car is or how much money you spent to own it, it’s not going anywhere. In the same way, you can have the finest of clothes, the best sales gear and script that money can buy, but unless you have a well-maintained process and system for prospecting, you will never be able to drum up new business.
The fear of prospecting and rejection remains in most of us. As children, we’re told never to talk to strangers. Some of our parents told us to not speak unless we were spoken to. When we heard the word “no”, it was usually associated with an experience that made us feel bad, which is why we automatically associate the word “no” with negative feelings. So, when we are required to make cold calls (i.e., talk to strangers) and there’s a high probability that they’ll reject our offer (i.e., say “no”), we can see why the thought of picking up the phone can be quite a turn-off.
Successful salespeople fear cold calling, but they fear the possibility of not being able to be financially independent that much more. Cold calling is the lesser of the two evils. Some research shows that 2% of sales are made on the 1st call, 3% of sales are made on the 2nd call, 5% of sales are made on the 3rd call, 10% of sales are made on the 4th call, 80% of sales are made on the 5th call. On the other hand, 48% of salespeople quit after the 1st call, 25% quit after the 2nd call, 12% quit after the 3rd call, 5% quit after the 4th call while only 10% made that 5th call or more. Being persistent can pay off. Here a few sources for identifying prospects:
Existing customers: 80% of your business will come from existing customers. The relationship between customer service and sales is intimate. Satisfied customers will come back for more. Invest in and maintain the very best of relationships with your existing customers. Also, look at your existing accounts for additional opportunities to generate business either through up-selling or cross-selling.
Past customers: You could lose customers when their needs change. There is not a lot you can do about this - but you need to stay in touch. Their needs could change again and if you are still in their mind - and they still trust you - they may well call you.
Referrals:People who your customer knows and who might buy your product are a good source for business. If you have established an excellent working relationship with customers, and if you have gone out of your way to help them, there is no harm in asking the customer to refer you to friends or acquaintances in other companies.
Newspapers: The Business section, job advertisements and business articles can provide names of company executives you might want to approach. Look for announcements of mergers and acquisitions. Your business could double overnight and offer many fold opportunities for business growth. You could also subscribe to magazines that could help you connect with key people
Industry Associations: These along with local management bodies and chambers of commerce can provide a listing of companies and individuals whom you could approach.
Trade shows: Interact with customers you meet there to determine their potential and get the names of people you can approach and follow up with later
Social clubs:The Rotary Clubs, Lions Club, Community Meetings, etc could provide an opportunity to volunteer as also a great avenue for business networking.
Breakfast networking meetings: Offer yourself as a motivational speaker, talk about emerging trends in your industry and get introduced to a number of influential prospects for your products.
Social media marketing: This and other avenues on the internet offer a wide range of prospecting opportunities and sources of information.
Cold Calling: No matter how much you advertise, most clients are likely to respond to a sales person who understands their needs and through a dialogue recommends a suitable product that would serve them well. Many of us dislike the thought of the dreaded cold call and have all kinds of immobilizing defense mechanisms and excuses that cold calling is intrusive, unnecessary and unprofessional. However, if done consistently and correctly, it often yields high potential prospects and could be a lucrative part of the sales strategy and support the business that is already received from referrals, tradeshows, advertisements and our regular customers.