Powerful prospecting

Why is it that some sales reps consistently earn a six-figure annual income, while other reps, putting in the same hours, selling the same products and trained by the same sales manager, struggle each month financially to make ends meet?

The answer to this question is painfully simple: The six-figure sales reps understand the importance of business development and never forget to ask for referrals.

Top producing sales reps set high standards for themselves and spend the majority of their time either actively prospecting for new business or closing sales. Successful sales reps set productivity goals, establish priorities and don’t waste their precious time hanging out in the break room or taking two-hour lunches.

Top producers don’t need to be reminded to ask for referrals on a daily basis or follow up on hot leads because they understand that prospecting for new business is a necessity and not just an activity.

The good news is that reps can be trained to prospect for new business, as they can be trained in any other learned skill set, and they can develop the practice into a habit. The six tips that follow can help sales reps develop this skill.

1. Don’t forget to ask for referrals.

When it comes to asking for referrals, timing is everything. Research indicates that the most effective time to ask for referrals is right after the sale or after providing a valuable service for your customer.

Asking for referrals prior to closing the sale is a big mistake and may even jeopardize the sale itself. However, once the sale has been completed, your customers will be on an “emotional high” and will be far more receptive to the idea of providing you referrals.

When asking for referrals, the goal is to get as many names written down as possible. Sales reps should keep asking “Who else?”

Once your company’s advocate has given your sales rep all of his or her referrals, your rep should then go back over the list of names to get details on each prospect.

2. Train and reward your advocates.

An advocate is a person who’s willing to go out of his or her way to recommend your company to a friend or associate. Most customers are initially reluctant to provide referrals without basic training and motivation.

Once a sales rep is given a prospect from an existing client, it’s a good idea to take the time to role play with your company’s advocate to demonstrate how to approach the referral he or she has provided. A brief role-playing exercise will build your advocate’s confidence and keep him or her from overeducating their referrals.

During the role-play session, be sure to prepare your advocate to expect some initial resistance. This training will pay big dividends by making your advocate more effective and less likely to become discouraged when faced with rejection.

Always take the time to thank your advocates and to give them feedback on the status of their referrals. I recommend calling them and then following up by sending a thank-you card or gift.
 

3. Strike while the iron is hot.

Prospects, like food in your refrigerator, are perishable and, therefore, need to be contacted quickly. Each day that slips by without making initial contact with the referral dramatically reduces the probability of making the sale.

Your sales people should develop the habit of contacting referrals within two business days or sooner. Have a system to keep track of referrals so they don’t end up falling through the cracks. It’s critical to have a computerized client contact management system to record your sales reps’ remarks and track future contacts and appointments. Relying on memory alone is a very poor business decision that will cost dearly.
 

4. Schedule a minimum of two hours per day for phone calls.

Advise your sales representatives to make their phone calls in the morning while they and their referrals are fresh and alert. Sales reps should treat their prospecting time with the same respect they would give to any other important appointment. This is not the time to check emails, play solitaire on their computers, make personal phone calls or chat with associates.

Sales reps should avoid the temptation to try to sell your company’s product or service over the phone. Their objective for every phone call is to create interest, gather information and make an appointment. If the prospect asks a question, reps should get in the habit of trying to establish an appointment rather than giving a quick response.

Sales reps should avoid shooting from the hip and use a script instead. It’s important to use a phone script when contacting prospects to avoid leaving out key information. It’s also a good idea for the sales rep to role play his or her script over the phone with your company’s sales manager until he or she feels the rep sounds confident and professional.
 

5. Qualify prospects at maximum range.

Unfortunately, not every prospect will be interested or qualified financially to purchase your products or services. Successful sales reps don’t waste time chasing after low-probability prospects and know when it’s time to cut their losses and move on.
 

6. Don’t take rejection personally.

Selling, like baseball, is a numbers game, pure and simple. Rejection is to be anticipated as a natural aspect of the qualification process, so sales reps should not take it personally and instead learn from rejection by using it as a valuable feedback mechanism. Salespeople who take rejection personally lack perseverance and seldom make the sale.

For the majority of salespeople, prospecting for new business is without a doubt the most challenging and stressful aspect of the selling process. Selling is a contact sport, and daily prospecting for new business is the key to every salesperson’s long-term financial success.

By encouraging your sales staff to integrate these six powerful prospecting tips into their daily business routine, they’ll be able to keep their appointment calendars packed with qualified prospects.

John Boe presents a wide variety of motivational and sales-oriented keynote sessions and seminar programs for sales meetings and conventions. He can be contacted through www.johnboe.com or by calling 937-299-9001.