Prospecting Like a Pro

The Myths:

• The more prospects I see the more deals I’ll close.
• I need to keep my sales pipeline full of prospects.
• Rejection is just part of the game.
• Getting an appointment means the prospect is interested.
• Salespeople are born not made.

It’s about quality, not quantity. In this magazine’s media kit, we talk about the “cost per thousand myth”. Media buyers and advertisers will often judge a publication solely by the number of it’s reader, before deciding whether to place their advertising in that journal. The more readers a magazine has, the cheaper it costs ( per 1000 readers) to reach them.

So the calculation looks like this: say the advertisement cost R100 to place and the magazine reached 1000 readers, the cost to reach each reader is 10 cents. Looks simple, no?

There are a few critical things that are often left out of the equation.
The first is: how niched is that publication? Let me explain: an insurer wishes to reach new customers. The insurer then places an advert in a national Sunday paper (with say, a readership of over a million people). The advertisement costs a R100 000 plus, because as the Sunday Paper advertising sales person points out, the million readers it reaches make the cost per thousand price one of the cheapest in the country. And that’s fine if you are wishing to reach a general retail consumer.
But what the are not taking cognizance of is that, of the million readers, only a tiny fraction is in the market for insurance. By comparison an advertisement in this (niched) publication, where every reader is an intermediary ( or, at very least, employed by an insurance company), the advertising message will reach far more qualified readers. A single broker could have anywhere between 500 and 5000 clients. That means a single message in this publication has the potential to influence 7.5 million qualified insurance clients. Yet RISKsa currently has only a shade over 15 000 readers. See why properly qualified leads are so important?
Highly successful salespeople target a select few prospects and work them hard. They then focus on the highly probable prospects first. The better you have selected your prospects, the closer your probable closing ration will get to that very profitable 1:2 number.

Prospecting defined

It is a separate job and totally distinct from sales, much like the marketing process. Generally, prospecting precedes the sales cycle and is defined simply as the job of identifying qualified leads that may benefit from your range of services. More importantly, a primary aim should be to disqualify those prospects who are not yet ready to benefit from your services. On the 80/20 principle, dump the 80% who are not ready, and focus on the 20% who will bring home the moolah.

A) Prospecting from A to Z:

• Have a defined monthly target list.
• Set aside a quiet time every week and make it the same time so that this activity becomes a habit.
• Do a Google search on the company (and the key individuals).
• Find a link
• A link is a connection point between your services and the client’s business.
• Become a detective and search the net for all kinds of clues that give you a better understanding of your prospect.
• Be clear about their vision, mission, their customers and their suppliers – and search for links to your product.
• Example 1: You discover your prospect is involved in a major event and you specialise in public liability insurance.
• Example 2: You discover your client has bought a B&B or resort and you match that to a new hospitality insurance product.
• Example 3: You discover your client is opening a branch in an oil rich country up north where there has been terrorist activity and you offer them specialised kidnap and ransom insurance.
• Plan your call – think how you can add value at every opportunity. That’s value from the prospect’s perspective, not yours – ask yourself ‘why should this person listen to me?’
• Pick up the phone

B) The Telephone Call

1. What is your aim? To get an appointment with the right person – the person you are sure (from your research), is the one who is qualified to make a decision.
2. Introduce yourself and your company, then the reason why you are phoning. Example: “…and the reason why I am phoning is that I see you are opening a branch in North Africa (mention the link) and I am sure the safety of your people there is paramount to you…”
3. Pause and invite them to comment.
   (Show a sincere interest in what their company is doing. Business Partnering is all about putting their company 1st not yours.)
4. Now back to the link. State the reason to meet -
   “We specialise in kidnap and hostage insurance designed specifically expatriate staff in that region…”
5. Use 3rd Party Proof (name dropping)
   “…and companies like… …have used us extensively in this regard.”
6. Close an appointment on time:
   “So when would suit, early next Tuesday or later in the week, perhaps Friday morning?”
7. Remember to restate the reason
   “Great, I look forward to learning more about your new oil exploration project (be specific) and discussing how we can keep your team safe while they are away from home.”
8. Confirm the meeting time and the reason for meeting by e-mail.
9. You now have a qualified appointment and an agenda.
10. Do more research, so you earn the right to become a proper business partner.

Summary: Prospecting in 10 easy Steps:

1. The raw list of indiscriminate prospects is really just a list of names.
2. Your target is that 20% of those names you are going to research and focus on for the month.
3. Research the target
4. Find a genuine quality link.
5. Make the call.
6. Introduce yourself, then the link (don’t ask if it’s okay to talk).
7. Keep the interest factor high – show you means business (no chit chat).
8. Invite a reaction or simply shut up (a dramatic pause).
9. Close on an agenda and meeting time.
10. Confirm via e-mail.