Fool’s Prospecting
In the sales profession, finding potential customers is an essential task. But many sellers don’t put the time and effort needed into this end of the job. We mistakenly believe that potential customers will drop into our laps. I know it is sad, but that magic never occurs. Brian Tracy is a motivational speaker, author, and personal development expert. He has written many best-selling books on success, leadership, and sales. These include, "Eat That Frog!" and "The Psychology of Selling." The focus is on professional excellence. He says, “The key to success is to focus our conscious mind on things we desire, not things we fear."
With that in mind, there are some ways we can focus our minds on prospecting. First, know this requires work. I have no shortcut to make this happen. And neither does anyone else. There are two common strategies for sales prospecting. These are targeted prospecting and sheer volume prospecting. Targeted prospecting focuses on specific potential customers. These are the ones who are more likely to be interested in what you sell. Sheer volume prospecting aims to reach as many people as possible. And that is without regard for their likelihood to buy. While both have their uses, targeted prospecting is more effective.
Targeted prospecting is a method of identifying and reaching out to potential customers. They fit specific criteria that make them more likely to buy from you. This strategy involves several steps. The first is to determine who your ideal customer is. It means understanding the profile, interests, and needs of the businesses. The ones most likely to benefit from your services. If you sell high-end sports equipment, your ideal customers might be professional athletes. Or it might be a sports enthusiast who fits the profile. Targeted prospecting relies on data and research. and profiling. You gather information about potential customers from various sources. You can use market research and census data. You can use sales tax information and retail spending power. You can look at real estate data and zip code-based demographics. This helps you create a list of prospects that fit your criteria.
Once you have identified your ideal customers, you segment the market. You can silo it into different groups based on specific characteristics. This allows you to tailor your sales approach to each group. Your message to a small business might be different from the one to a large corporation. Engage in personalized outreach. Customize your sales approach. And customize your communication. Base it on the specific needs of each prospect. Personalizing phone calls and emails tailored to your prospects is a method that works. That is as long as you are persistent. Targeted prospecting is an ongoing process. You continuously evaluate and refine your prospecting efforts. This is based on the measured results you achieve. This helps you improve your approach and increase your success rate.
What are the advantages for you of doing it this way? One is you have higher conversion rates. And that is because you are focused on prospects who are more likely to be interested in your offerings. You have a higher chance of converting these prospects into actual customers. You are using your resources with efficiency. By concentrating on a specific group of prospects, you make better use of your time and resources. You’re not wasting effort on people who are unlikely to buy from you. This results in better customer relationships.
Personalized outreach helps build stronger relationships with potential customers. They appreciate the tailored approach and are more likely to trust and buy from you. When you understand and meet the specific needs of your prospects, they are more likely to be satisfied with your services. This can lead to repeat business and referrals. Targeted prospecting can result in a higher ROI. The resources spent on prospecting are more likely to convert to sales. You get more value out of every dollar you spend on your sales efforts.
Anthony Iannarino is a sales leader, author, and speaker. He is known for his expertise in sales strategy and personal development. He has written several influential books. These include, "The Only Sales Guide You'll Ever Need" and "Eat Their Lunch." He writes "The secret to making quota every year is to make sure your pipeline is always full of qualified prospects." How do you achieve this full pipeline? It starts with the prospecting. And finding the most likely buyers of your services. Those with the highest need matched against your best audience.
Sheer volume prospecting is about reaching out to as many people as possible. You are simply putting names on a list. And any name will do. And the more people you contact, the higher the chances of finding a hit. It is a method for some who feel that selling is a mere numbers game. In sheer volume prospecting, you cast a wide net. It means reaching out to a large number of businesses. This is without much consideration for whether they are the right fit for your product. You might use mass emails, cold calls, or social media blasts to reach as many prospects as possible. Unlike targeted prospecting, sheer volume prospecting doesn’t involve much research. You are not worried about the specific needs or characteristics of potential customers. The goal is to get your message in front of as many eyes as possible. You rely on the law of averages to make your goal.
Since you’re contacting a large number of people, the outreach is typically standardized. You use the same sales message for everyone, rather than customizing it for each prospect. Sheer volume prospecting operates on the principle of large numbers. Even if only a small percentage of the people you contact are interested. The large volume of outreach means you still get a significant number of leads. This method is often quicker and simpler. That is because it doesn’t require the same level of research. It does not rely on the customization needed in targeted prospecting. You can contact a lot of people in a short amount of time.
Art Sobczak is a sales trainer, speaker, and author. He is known for his expertise in cold calling and telephone sales. He has written several books, including "Smart Calling." This book focuses on strategies for successful phone prospecting and improving sales results. He wrote, "It's not about having the right opportunities. It's about handling the opportunities right." When we embark on this idea of sheer volume, the requirement is massive action. We can’t install this strategy and be passive about it. It has to be a dedicated, massive push to make contact, every day. You will only make a sale after you make the contact. It never happens in reverse or by accident.
Here are the negatives. You are contacting a large number of people. You have a limited understanding of their predisposition or likelihood to buy. So, your conversion rates are typically lower. Many of the people you reach out to won’t be interested in your product or service. It can be a waste of time and resources. You might spend a lot of effort reaching out to people who have no interest in what you’re selling. Standardized communication can feel impersonal and generic. Potential customers may not feel valued or understood. This can hurt your chances of building strong relationships with them. You’re likely to face a lot of rejection. This can be discouraging for sales teams and can lead to burnout. Because of these lower conversion rates, the return on investment is lower. You might spend a lot of money on prospecting efforts. All without seeing a significant increase in sales.
Targeted prospecting is better for consultative sellers. It matches better with our methodology. Targeted prospecting focuses on quality over quantity. Instead of reaching out to as many people as possible, you focus on those who are more likely to buy. This results in higher conversion rates and more efficient use of resources. You take the time to understand the needs and interests of your prospects. This allows you to tailor your sales method and communication. It makes potential customers feel valued and understood. This personalized approach can lead to stronger customer relationships and higher satisfaction. You are focusing on prospects who are more likely to be interested in your product or service. Because of this, you are more likely to convert them into customers. This leads to better sales outcomes and a higher return on investment.
Mark Hunter is another respected sales expert. His work focuses on sales training and development. He has written books like "High-Profit Prospecting" and "A Mind for Sales." He zeros in on effective sales strategies and mindset improvement. Mark writes, "It's prospects that buy; not suspects." And he is also known for this quip, "Thinking about a prospect does not qualify as prospecting." He has a simple approach to prospecting, at least by definition. He writes, "Prospecting – find the man with the problem." I had a former co-worker who used to claim that is sexist. And she was right. You can also find the woman with the problem.
Targeted prospecting allows you to make better use of your time and resources. You’re not wasting effort on people who are unlikely to buy from you. This means you can focus your energy on high-potential prospects. This helps you achieve better results. Personalized outreach helps build trust and rapport with potential customers. They appreciate the tailored approach and are more likely to become loyal to you. This can lead to repeat business and referrals, further boosting your sales. Targeted prospecting involves gathering and analyzing data about your prospects. This helps you gain valuable insights into their needs and preferences. It allows you to refine your sales strategies and improve your offerings. Targeted prospecting is more efficient and effective. Because of this, it results in a higher return on investment. You get more value out of every dollar you spend in your sales efforts.
What should you do to get started? Determine the characteristics of your ideal customer. This includes demographics, interests, needs, and buying behavior. Create a detailed customer profile to guide your prospecting efforts. Use various sources of information. Do not rely on a single source. Use market research reports and industry trade lists as your guide. Look at local business organizations and civic groups for the activities. This will help you gain information about specific business categories. Look for prospects who match the characteristics of your ideal customer. Divide your potential customers into different groups based on specific traits or needs. This allows you to tailor your sales approach to each group and improve your chances of success. Customize your sales communication based on the specific needs of each prospect. Use personalized emails and phone calls, to engage with potential customers. Continuously evaluate the effectiveness of your prospecting efforts. Track your results. Gather feedback. Then, adjust your approach as needed to improve your success rates.
Jill Konrath is a sales strategist, speaker, and author known for her expertise in B2B sales. She has written influential books like "Selling to Big Companies" and "Snap Selling." Her focus is on effective sales strategies and accelerating sales cycles. She says, "Your job is not to ‘sell’ your product or service but to uncover the value it creates for the customer." Which method do you think creates more value for the customer? You cannot show real utility in the sheer volume sales approach. But you could connect with people and ask them about “Their car’s extended warranty, which is about to expire.”
Targeted prospecting is generally better than sheer volume prospecting. It focuses on quality over quantity. You are reaching out to potential customers who are more likely to be interested in your product. This will automatically give you a higher conversion rate. You can build stronger customer relationships. You will make more efficient use of your resources. Sheer volume prospecting has its uses. But targeted prospecting offers a personalized approach and higher ROI. This makes it an effective strategy for most direct sales teams. By implementing targeted prospecting techniques, you can improve your prospecting efforts. This will generate more leads. And achieve better sales results. Whichever method you settle on, commit to it. Otherwise, you will engage in what I like to call fool's prospecting. In this method, you sit around and wait for something to happen. Here is a hint: It never does.
My new book 21st Century Sales Success is now available on Amazon. If you like what you have read, please consider ordering a copy or two. You can always send one to a friend. Order your copy here: https://bit.ly/21stCenturySalesPB