Developing and Qualifying Prospects and Accounts Notes

Developing and Qualifying Prospects and Accounts

Learning Objectives

• 9.1 Discuss the importance of developing a prospect or account.

• 9.2 Identify and assess important sources of prospects and accounts.

• 9.3 Describe criteria for qualifying prospects and accounts, including specific questions to ask.

• 9.4 Explain common methods of collecting and organizing prospect and account information, detailing tools and techniques.

• 9.5 Describe the steps in managing the prospect or account list, including prioritization and maintenance.

Salesperson's Main Purpose

• The main purpose of a salesperson is not merely to make sales, but to create and retain customers through building trust and delivering value.

Prospecting and Account Development

• Prospecting: Identifying and developing potential customers in B2C. Focuses on finding new individual consumers.

• Account/Business Development: Identifying and developing potential customers in B2B. Involves nurturing relationships with business clients for long-term growth.

• Prospect: An individual or business who meets the qualification criteria established by the company, showing potential for becoming a customer.

Account Development Representative (ADR) Position

• Role: Engages with accounts, targeting key and influential contacts to qualify opportunities and stage initial sales meetings. Acts as a bridge between marketing and sales.

• Primary Responsibilities:

  • Drive sales opportunities by staging introductory sales meetings, product demonstrations, and on-site meetings. Ensure meetings are well-prepared and tailored to the prospect's needs.

  • Proactively identify revenue-generating customers via email campaigns and outbound phone calls. Track and analyze the effectiveness of these campaigns.

  • Perform pre-call planning, including researching accounts and identifying key influencers and decision-makers. Use tools like LinkedIn Sales Navigator for detailed research.

  • Maintain and manage the SFDC database, including data entry, follow-up planning, and pipeline reporting. Ensure data accuracy and completeness.

  • Collaborate with marketing, support, sales management, and product management. Share insights and feedback to improve overall sales strategy.

• Required Skills/Experience:

  • Degree required, preferably in business or a related field.

  • Minimum 2 years B2B enterprise account development experience, with a proven track record of success.

  • Strong communication skills, both verbal and written.

  • Experience meeting/exceeding prospecting goals and account development metrics. Ability to set and achieve targets.

  • Microsoft Office and Customer Relationship Management (CRM) skills, with proficiency in platforms like Salesforce.

Importance of Prospecting and Account Development

• Every salesperson must cope with customer attrition due to:

  • One-time need or an extended time between purchases. Customer's needs are met, or the product lifecycle extends significantly.

  • Movement outside of territory. Customers relocate, making continued service impractical.

  • Customer business failure or merger. Business ceases operations or is absorbed by another entity.

  • Loyal buyer or purchasing agent changed positions. Key contact leaves the company, disrupting established relationships.

  • Sales lost to the competition. Competitors offer better deals or more attractive solutions.

Ferris Wheel Model

• Illustrates the continuous process of adding new prospects to replace lost customers, ensuring a steady flow of business.

• Elements: Centers of influence, directories, trade publications, digital sales, websites, cold calling, networking. Each element contributes to attracting new prospects.

• Customer Attrition: Business failure, new buyer buys from another source, acquisitions and mergers, customer moves, customer needs change, one-time need. Understanding these factors helps refine prospecting strategies.

Prospecting and Account Development Planning

• Improve Prospecting Quality:

  • Increase the number of people or accounts who board the Ferris wheel, expanding the pool of potential customers.

  • Improve the quality of the prospects who board the Ferris wheel, focusing on those most likely to convert.

  • Shorten the sales cycle by quickly determining which prospects are qualified (need, authority, ability to pay). Efficiently identify promising leads.

Assessment of Prospecting and Account Development Plans

• Prospecting and account development plans must be monitored continuously because some prospecting techniques that worked well in the past may become ineffective because of changing market conditions. Regular evaluation is essential.

• New Prospecting Techniques: Attending association meetings or speaking at meetings. Engaging with industry groups can open new doors.

Sources of Prospects and Accounts

• Referrals

• Prospecting with social media

• Directories

• Trade publications

• Trade shows and special events

• Digital sales and e-mail

• Direct-response advertising

• Online ads

• Website

• Computerized databases

• Cold calling

• Networking

• Educational seminars

• Prospecting by nonsales employees

Referrals

• A referral is a prospect recommended by a current customer or someone familiar with the product. Referrals often have a higher conversion rate.

• Building value into the sales process increases the likelihood of receiving referrals. Satisfied customers are more likely to recommend others.

Prospecting with Trade Shows and Special Events

• Trade shows are effective for identifying good prospects and closing sales. They provide face-to-face interaction and product demonstrations.

Prospecting with Social Media

• Social media provides opportunities for finding and reaching out to prospects. Platforms like LinkedIn are invaluable for B2B prospecting.

• Examples: LinkedIn, Twitter, FollowerWonk, TweetDeck, HootSuite, SproutSocial. These tools help manage and analyze social media interactions.

Networking Model

• Networking within your organization. Leveraging internal contacts for leads.

• Networking within your industry. Attending industry events and joining professional groups.

• Networking outside your industry. Exploring unrelated sectors for potential opportunities.

Prospecting and Account Development by Non-Sales Employees

• Non-sales employees can contribute to prospecting efforts by identifying potential leads within their networks.

Influence of the Company Website

• Company websites play a significant role in lead generation by providing information and capturing visitor data.

• Lead Scoring: Assigning points to different parameters to prioritize leads and focus on the most promising ones.

  Example:

• Number of clicks: 5

• Filling out a contact form: 15

• Registering for a webinar: 20

• Etc.

Qualifying Prospects and Accounts

• Qualifying: Identifying prospects who need your product and should be contacted. Ensures efficient use of sales resources.

• Criteria:

  • Does the prospect have a need for my product? Identifying a genuine problem that your product can solve.

  • Does the prospect have the authority to buy my product? Determining who the decision-makers are.

  • Does the prospect have the financial resources to buy my product? Assessing their budget and financial stability.

  • Does the prospect have the willingness to buy my product? Gauging their interest and readiness to commit.

Collecting and Organizing Account and Prospect Information

• Collecting and organizing account information is an important step in the sales cycle process, enabling personalized communication and targeted strategies.

Sales Intelligence

• Sales Intelligence: Insights about a prospect’s marketplace, firm, competitors, and the prospects themselves. Provides a competitive edge.

• Necessary for complex sales with long closing cycles, where in-depth knowledge is crucial.

Managing the Account Base

• Account Analysis: Estimating the sales potential for each prospect to prioritize efforts and resources effectively.

The Portfolio Model

• Classifies accounts based on account opportunity and competitive position. Helps tailor strategies for different types of accounts.

• Categories: Strategic accounts, problem accounts, hold accounts, drag accounts. Each category requires a different approach.

CRM Sales Funnel

• Visual representation of the sales process, from initial contact to closed deal.

• Stages: Prospect, Qualified, Needs Analysis, Presentation, Negotiations, Closed/Serviced. Each stage represents a step in converting a prospect to a customer.

• Analysis: Total Potential Sale and Forecast Analysis. Provides insights into potential revenue and sales trends.

Pipeline Dashboards

• Visual tools to monitor and manage the sales pipeline, providing real-time insights into sales performance.

• Metrics: Lead status, pipeline trend, sales leaders, historical analysis. These metrics help track progress and identify areas for improvement.