All that you should know about identifying the right prospect and how to approach them right!

Prospects

Have you ever thought that what is it that the top-selling agents do right to close the deals? It is important to understand and learn from each closure that was won or that was lost. This helps the sales representative to identify whether the lead they are contacting, is a nice fit for the product being sold. Identifying this important detail makes sure that they are not wasting their time on the wrong prospect! This is where understanding the concept of prospecting becomes important.

So, let us through this blog learn the lead qualification process to be able to save time by researching these probable buyers well, to find out the hacks and techniques for prospecting.

What is meant by Sales Prospecting?

This is the first step in the Sales Cycle. Prospecting is identifying impending customers with the goal of converting them into current customers. Prospecting involves opening and developing new business from potential customers and moving them through the sales pipeline to convert them into customers.

Related Post: How to Balance Prospecting and Account Management efficiently

Understanding why is Prospecting Essential?

Prospecting is not an option in the sales and sales closures are not easy. Having identified a potential customer, it is necessary to connect with them meaningfully. It lets you ascertain a good match of customers for your business. Sales prospecting is more about discovering prospective buyers who actually want your product.

Having effective prospecting applied, the proportion of qualified leads gets higher. The better the lead qualifying process, the portion of customers per qualified lead increases. Therefore, prospecting makes sure that a company has an ample base of potential customers to keep its sales pipeline occupied.

Facts

Some Important Facts about Your Buyers!

  1. Top sales performers tend to generate nearly 3X more sales in the act of prospecting than the low performers.
  2. With better sales prospecting, the contacts created will be a much better fit for your product. Having a good fit with business turns these contacts into long-term business. The value of churning the leads into closures is much healthier when the business can identify good-fit customers through prospecting. One way to do so is by putting across the right sales qualification questions to your leads.

Understand that leads and prospects are different, and knowing who is a leader and who is a prospect let you have the right methodology to approach them. Here is a look at the difference between the two.

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Lead vs. Prospect

‘Lead’ and ‘Prospect’ are two different words in the sales pipeline that reflect the status of the business relationship.

Prospect – Potential buyer who fits into your target market but has not expressed their interest in buying your product yet. They have qualified leads that have characteristics typical to your buyer personality or the target audience. Based on the fit, a prospect is considered a potential customer even if they have not yet been contacted by the company.

Lead Vs Prospects

Lead – A lead that has expressed a positive response to your sales pitch, is a prospect. They may have shown interest in your product through website visits, signing up for free trials, etc.

However, for both leads and prospects, the goal of a sales representative is the same i.e. to foster them till they turn into a deal.

A Simple Guide on how to Prospect?

Prospecting and not being productive leads to a lot of time wasted, so we are capsulizing the prospecting process to identify, how it can be improved. Choose from below, what suits best your sales scenarios.

1. Find out more about your leads’ business to understand how your product can contribute to it.

This is an important perspective to ensure that the prospects have improved chances of getting converted into closed deals. This helps to establish if the prospect you are contacting is workable or not. Line up these prospects, to see how to qualify and prioritize them. Personalize and develop connections and trust with them.

2. Arrange them depending upon how likely are they going to convert into final deals.

This helps in optimizing time and making certain that the best efforts are put towards the right contacts and will be more likely to close.

Prioritization will be different for the different sales organizations and different sales persons, but the main idea is to create a few buckets of prospects based on their possibility to buy and focus on one bucket at a time. Break down the prospects based on their importance. E.g. in some cases, the amount of focus laid may depend upon how big the deal is in terms of money. Order them depending upon their importance in the sales pipeline. Lead management software automatically implements a prospect prioritization formula to prioritize the list.

Deals
  • Customize the sales pitch for each prospect

The more information, a sales rep has about the prospect, the easier it is to hone the pitch and personalize it to the clients’ needs. So, work upon what the prospect’s requirements are. Then find a reason to make a personalized connection. Create options for them and know what would be their end goal to handle objections. Find the relevant answers to their objections with a personalized pitch that matches their primary motives.

Competitive analysis can be done to position your product within the industry and how to handle questions.

4. Try to help the prospect instead of trying to sell.

Make reference to a specific problem that the prospect may be facing and offer a solution to it with respect to your product. Your solution should be relevant, and time and keep the conversation interesting by building a rapport. Remember that the service you are selling is to be used by them. E.g. Offer to conduct an audit instead of asking them to schedule a meeting. Stay natural and remember that prospecting does not seem like selling. It is just establishing whether both parties benefit from each other.

5. Go over the process and see what can be improved.

Make a note of happenings that created value in the process and what led to a waste of time. Revisit, how the challenges were overcome, how you defined the goals well, how the budget worked out, what was the result of inaction, and how well did you identify the successful result. This helps in identifying the locus of control for future leads.

Conclusion:

Finding the right prospect and transitioning them into a deal doesn’t have to be a difficult task. Rather, it should be one positive experience for both the parties. With the above workflow, one should be in a position to translate a right-fitting prospect into a profitable deal. The best measure to a satisfactory deal closure is a satisfied client. A strong plan creates effective prospecting and lead management.

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