Sales Chapter 2 Exam 1

prospecting

identifying new customers; engaging new business opportunities with current customers

quota

a measureable sales gal for a specific period

attrition

losing customers over time because they are dissatisfied, choosing another supplier, etc.

opportunity cost

the cost to a buyer of doing nothing or choosing an alternative

find new customers and sell more to existing customers

salespeople must ___

call reluctance

avoidance of customer interactions; fear the time will take too much away from existing customers

hunting orientation

focuses on securing new customers

farming orientation

focuses on selling to existing customers/ building relationships

lead generation, lead prioritization, lead qualification, prospect prioritization, sales call planning

prospecting process

lead generation

finds potential customers who resemble current customers

lead prioritization

ranks leads based on likely potential and return on time

lead qualification

determines whether a lead is truly a prospect

prospect prioritization

ranks prospects based on desirability

sales call planning

prepares for a strong initial sales conversation

lead

individuals similar to current customers; early in the process; may or may not be interested

prospect

qualified lead with a need, ability, authority, and alignment; further in the process; more likely to be a customer

hot lead

has shown interest

cold lead

has not shown interest

inbound lead

buyer initiates contact

outbound lead

seller contacts the buyer

sales development rep (SDR)

inside salesperson focused on operating leads

networking

building professional and social relationships

referral

lead given by a current customer who believes the person may benefit

trade show

industry event that brings sellers and potential customers together

cold calling

unsolicited call/visit

sales directory

3rd party list of possible leads

center of influence

well connected, respected person among prospects

noncompeting salesperson

salesperson who sells something different to the same target market

referrals

often have the highest conversion rates because trust transfers from the existing customers to the potential buyer

situation, problem, implication, need payoff

SPIN Call Planning