Learn how to define and master Sales Prospecting.
Sales prospecting includes compiling lists of contact information, building a social media presence, collecting opt-in emails, and sending out email campaigns to encourage responses.
Basically, the idea of sales prospecting is to build a rich source of contacts for your sales team and processes. Then, depending on the complexity of your sales pipeline, you may go straight to direct contact or your prospects may go through a series of sales processes that identify them as cold, warm, or hot before they go to Sales.
With today’s tools, sales prospecting is a very important process that helps identifies needs, niches, and previously overlooked markets. Salespeople who skip this step may find themselves mining for gold in the same overworked demographics and markets that every other company is working.
Large companies may have teams of people that focus entirely on identifying markets and demographics, and then digitally capturing thousands of leads, which are then passed on to Sales. However, in small companies this is a process you need to learn and perform by yourself. Even as a sales rep for a larger company, understanding sales prospecting can help you evaluate the quality of the leads you are getting and get an edge over your competition, both within and outside the company.
Sales Statistics Show Greater Performance With Smart Sales Prospecting
According to Dave Kurlan of Objective Management Group, 50% of salespeople do no sales prospecting at all.
And yet, check out these amazing statistics from OpenView Labs:
- The first viable vendor to reach a decision maker has an average 74% close ratio
- 50% of buyers choose the vendor that responds first
- Leads responded to within 5 minutes are 100x more likely to be qualified
When you’re vying for that edge, these statistics show the necessity of finding uncultivated ground to tap—finding customers who have not yet been approached by competing sales agents and getting to them first.
The National Sales Executive Association says that only 10% of salespeople make more than 3 attempts at contacting prospects, but that a whopping 80% of sales depend on 5 to 20 contact attempts.
Persistence is important! In today’s digitally churning world, speed is critical too. Getting back to prospects quickly is key to either closing the deal or enticing them deeper into the sales pipeline.
The phone is still the number one way that most salespeople get appointments or close deals, but just because it’s the preferred method of communication for salespeople, doesn’t mean it’s the preferred method for customers and clients. You’ll have greater success if you mix it up and reach out to prospects through a variety of methods like mobile, email and social media as well.
Marketing Sherpa, in its 2013 Email Marketing Handbook, found that 46% of companies polled said that email was an important factor in nurturing prospects.
According to Forbes, 78% of salespeople using social media outsell their peers. The same study reported that social media users were 23% more successful than their non-social media peers.
Why You Should Be Running a Sales Prospecting Process
It’s a common trap to keep fishing in the same pond, even when it’s been fished out. In today’s ocean, you need sonar and intelligence.
Many large companies have separate teams for inbound lead generation, and pre-qualified leads are handed over to Sales for cultivation. Franchises and some industry associations also provide leads to participating companies. Nevertheless, prospecting is an often neglected step in the sales process.
Relying on canned lists of industry leads means that you’re very likely just re-contacting prospects that have already been contacted before—sometimes many times over with no success.
While it may seem tedious at first, good prospecting will teach you to think outside the box. Once you experience success by identifying a niche that resonates with your brand, you’ll be sparked to find other inspired matches.
Another reason to do your own prospecting is that it gives you the opportunity to create custom messages for very small, targeted groups. John Doerr at the Rain Selling Blog says, “The foundation that underpins sales prospecting success is the strength of your list and the precision of your targeting.”
Many companies rely on referrals to keep sales coming in, but since most businesses experience a 10% customer attrition rate (lost business) every year, you’d have to be pretty assertive about getting referrals in order to cover lost business and grow your customer base at the same time. A few good prospecting exercises, however, could give your sales team the extra boost they need to bring you significant gains.
Prospecting Techniques and Tactics
Sales prospecting is often equated with cold calling, but it’s equally useful to identify demographic niches that respond to email, video, and social media.
Prospecting can also include the steps of repeated contact and qualifying leads, helping to relieve Sales of the burden of wading through contact information. It often takes multiple contacts before a prospect will respond and become a potential lead.
In social media, it may depend on the time of day that the message was delivered. Some prospects prefer to access social media only from work, or only from home. So it pays to build a rotation of messages all set to release at different times. Time zones are also a factor.
Effective prospecting tools should also focus on engagement, giving you ways to access your social media accounts to answer questions and stay in touch.
Email also has its challenges. A/B testing is an important factor in success. You should experiment with different subject lines, graphics, and click-throughs, as well as scheduling. It may take 4-5 attempts or more before a prospect responds and becomes an active lead.
Jill Konrath, the author of SNAP selling, highly recommends getting specific when you’re identifying niche markets. Jill’s advice: “focus, focus, focus.”
“Focus on certain types of customers. For example, put together a campaign and go after law firms. Or, think about what the school districts might need. Or how about mid-sized manufacturing firms. The more focused you are, the better your message resonates.”
Specialized messaging shows the prospect that you understand their needs. They know they won’t be talking to sales reps who are also marketing the same product to widely divergent businesses. Also, by hitting on some of their problems in the initial contact email or message, you’re more likely to get a response. The prospect is going to think, “Oh, that’s right, I do have that problem!”
Free information in the form of white papers, how-to articles and ebooks is attractive bait in the prospecting pond. By offering truly helpful information (as opposed to a blatant sales pitch) you can track responses and pre-filter prospects into likely leads.
If you’re determined to meet your sales goals, you should schedule prospecting regularly. Some experts advise prospecting daily, but it can take a block of time to run data and do research. Weekly may work better—just set aside a block of time, say 4 hours per week. Put it on your calendar and do it religiously.
At the very least, commit to a prospecting plan. Don’t start a campaign and stop halfway through, or get distracted by a new prospecting opportunity. You should create a “possibilities” list and then acquire those lists and niche market data. After that, you should have a template “to-do” list and calendar to keep each prospecting campaign on track. If you don’t have a lot of time to devote to prospecting, you might want to confine yourself to running one prospecting campaign at a time, start-to-finish. As you gain confidence, or if you have the time to devote to prospecting, you can stagger campaigns and juggle more than one prospecting project at a time.
Tools for Efficient Prospecting
Tools for prospecting should include more than a computer churn of available data. The best tools include competitive and cutting edge presentation-building capabilities. Insights on response ratios, productivity, and performance are also important.
Some of these tools may include geo-local dialers, voicemail automation and tracking, email templates and tracking, click-to-call, webinars, social media advertising design and tracking, and metric insights.
Ideally, you should be able to identify and set the KPI’s (key performance indicators) that you want to hit in both prospecting and sales. This requires tools that give you a platform for doing so without having to write them down on index cards or maintain a spreadsheet.
You should also be able to get information that allows you to quickly identify decision makers at companies, and find company demographics that will let you intelligently sort and prioritize prospects by any number of factors: sales, production, employees, territory, to name just a few.
You may be able to get these from industry lists or lead generators, but you can also capture them on your own website by offering valuable information like webinars, videos and white papers in exchange for some basic information. Plus, when people sign up requesting the information, they’re already pre-qualifying themselves as significantly interested in what you have to offer.
Another idea is to outsource prospecting. You can post jobs on freelancer sites like Upwork and Odesk, and get competitive bids for all kinds of lists, at rates far below what most lead companies offer. You can request company name, principal name, address, emails, phone number, social media, number of employees and other details, to your own custom specifications. You should expect at least an 8-10% error rate, but the savings may more than offset that.
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Prospecting is all about cultivating possibilities & opportunities. Review your company’s sales process and make sure that you’re using a combination of all the tools available in order to boost your company’s growth and sales potential.