Prospecting Review  |   Rating Prospects
Prospecting Methods

Prospecting

Determining Prospecting Ratios

   Prospecting is the first step to expanding the
      existing clientbase and/or developing new
      relationships with the potential of becoming
      a client.  Or, identifying and developing
      referral sources.

   Determine the number of prospects needed to
      meet your monetary goal.

   Factors to consider in developing a
      prospect ratio:
   Determine monetary objective
      for new business.
      - or -
      Amount to be achieved over the
      next months/year (time period).

   Determine new clients or
      expanded business from current -
      needed to achieve new business
      objective.

   Formula:

      Average Value of Customer  =
      Total monetary value of all clients
      ÷  Total number of present clients
      =   X
      then take Goal for New Business  ÷  X

   Determine the number of new prospects to
      approach to gain a meeting.   From
      experience, determine approximately how
      many prospects must be seen to produce one
      new customer.

   By going through this process it brings
      efficiency and effectiveness to the sales /
      business development effort.

   The number of prospects must far exceed the
      number of calls and meetings to be made
      ("hit" ratio of number of prospects to be
      contacted to make a sale).

   Regardless of the factors the influence the
      prospect ratio.  You should strive to track the
      number of calls made to the number of sales
      made (your "betting" average).

Prospecting Review

   Can you answer the following questions?
      If not you lack the necessary focus and goals.

   Target market(s)
1. Which industries, professions or individuals are you targeting?

2. Are any potential markets being avoided?

3. What geographical areas are targeted?

   Products

1. Which products and/or services are you emphasizing?

2. Which products and/or services that you are emphasizing low margins or other problems (e.g. servicing)?

   Competition

1. Are you particularly vulnerable to any competitors?

2. Are any competitors vulnerable to your competition?

   Strategic Objective

1. Is your business or organiation more interested in market share/volume
   -or-
   profitablilty of its products and/or accounts?

Rating Prospects

   Rating considerations:

   Prospects' eligibility for credit /
      non-credit business.

   Ability to pruchase

   Identify decision maker(s)

   know needs

   Your expertise / knowledge of this
      industry

   Your knowledge of product / services
      utilized in this industry

   Third party introduction is available

   You / your business's reputation in
      the industry

   Your competitive standing

   Prospects' profitability assessment

   Time investment for getting business
      (days / months / years)

   Needs not currently fulfilled by
      customers current "suppliers"

   Total monetary value if relationship
      were won.

Prospecting Methods

   Usual Prospecting Methods

   Cold Calling and Cold Canvasing

   Warm Calls - lead from someone else

   Appointments

   Active Networking

   Existing Clients

   Other Prospecting Methods

   Internal Prospecting
   Building an internal referral
      network can be very effective in
      helping reach sales targets.

   Call on the staff, in other
      departments or divisions as if
      they were prospects or centers
      of influence / referrals.

   They may be able, directly or
      indirectly, to bring new business
      opportunities to you.

   Hold information meeting,
      luncheons, coffee breaks, etc..
      with your internal sources.

   Ask for referrals.  Do NOT
      assume that they know you
      want referrals or what the
      characteristics are for a
      qualified prospect or opportunity.

   Look for opportunities in news artlcles.

   Local, national and international newspapers
   Business magazines and journals
   Trade magazines and newspapers
   National and international periodicals

   Meet with your competition to
      determine those speciality areas in
      which you do not compete. (Unbundle
      services and teaming opportunities)