Thoughtful Thursdays - Managing your prospect list

All your customers were once prospects. Without prospects there will be no customers. Yes we have heard it all before.

Today's thought is about managing  your prospect database. It is one thing to have a long prospect list and another to be working the list for maximum return.

Can you have too many 'hot' prospects? My answer would be yes, if it means your level of service is being negatively affected by the work load. Trying to be everything to everyone at the same time can be a risky and stressful way to do business.

One way to mange your prospect list is to grade including the following criteria:

• Sales potential, short term and long term
• Profitability of the potential business
• Probability of closing the sale
• Likelihood of the sale closing in 1 month, 2 months, 3 months or longer
• Where they are currently in the buying cycle

It makes sense to focus on confirmed high potential sales targets that have a high probability of closing in a short period of time. This information will also allow you to more accurately forecast sales.

Many times I have seen sales people spending too much time on low potential prospects. On the other side of the coin, be mindful of being seduced by the lure of a huge apparent potential with little chance of closing the deal. Make sure your information is sound and that the insights you draw are realistic.

Be wary of "Hopium" and "Happy Ears" as described in detail by author and sales expert Dave Kurlan.

Good selling,
Richard

Thoughtful Thursdays - A worth objection

During a recent client meeting I was asked two related questions: "How do you convince a prospect that the services offered are worth the investment?" and How do you approach the skeptical response?"

A bit of background first. The prospect belongs to the target market identified by research conducted. The prospect also confirmed a situation where the service offering might very well be part of a solution to their needs, yet they were still not convinced.

My response to the questions came in the form of two of my own questions:

1. Can you provide a detailed list and have you considered all of the prospects confirmed needs?
2. Have you done the math to quantify the benefits?

The point I was making was that sometimes we take for granted that our prospects will see the benefits without having them explained in detail. We think they will join the dots and make the leap to understanding how our products/services will return much more than the original investment.

It is not always a reasonable expectation. After all, it is likely they are not experts in your field and that is one reason they are talking to you.

It is reasonable to expect to encounter an objection if your prospect is not clear about how your offering is going to address their needs.

Today's thought is about being a good consultant. Get to know how your prospect and their business. The skeptical response usually cones as a result of not clearly articulating the value you are offering. Ask a few more questions - find out where the disconnect is and address it. Be patient and listen closely before you respond.

This wraps up Thoughtful Thursdays for another year. Thank you for tuning in and all the best for a successful 2012.

Good selling,
Richard

Thoughtful Thursdays - Is it okay to ask for more?

The other week I happened to catch a  few minutes of the 1948 version of Oliver Twist, enough to see the famous "Please sir, I want some more" scene.

At the risk of being perceived as unsympathetic to the grim situation Oliver found himself in, let me make myself clear that there is absolutely no disrespect intended.

It starts out innocently - a small revision here or a payment extension there. Some call it scope creep. We are happy to do the favour as it seems harmless enough and what the heck, it keeps the customer happy. You bet it does, wouldn't you be happy getting more for less?

Before you know it the requests become more frequent and the favours larger. By that time it can be too late. The concessions you have made in the past have gone unnoticed and the customer now expects that as routine behaviour.

Be like the brave Oliver Twist - it is your turn to ask for more. More respect for the way you conduct business. More dollars for the additional value you bring every day.

Go the extra mile and do the favours, but make sure your customer knows what you are doing. Sometimes it is advisable to toot your own horn if it gets you the right kind of attention.

Be mindful and respect your time and your customers will too.

Good selling,

Richard

Thoughtful Thursdays - It's that time of year again

As the calendar year draws to an end, there is no better time for many businesses to review performance versus plan for the previous 12 months and confirm objectives and strategies for the next 12 months. Enjoy your successes and set the plans for continued growth.

For owner/operated or micro businesses it means exchanging the tactical mindset of day to day operations to strategic thinking of a business owner. Using the information gained from the field during the past year and developing insights to create plans and objectives for the next.

Block off an adequate amount of time and do not let anything change that schedule. To avoid being distracted you may want to do this outside of your office, especially if you are home based. I believe it is also a good practice to ask peers for objective feedback.

Respect the exercise, each part of your business, marketing, operations and finance, are depending on you to set the course for sustainable growth.

Maintain sight of the vision you have for your business and ensure that your objectives, strategies and tactics are working in tandem to achieve that vision.

Good selling,
Richard

Thoughtful Thursdays - Shortening your sales cycle

Today's thought is about shortening your sales cycle and finding the gold quicker. If one was to analyze their sales cycle and determine where the bulk of time is spent before closing, it is likely in the area of making connections with the right people. What if you could get to the right person faster?

Are you using all the resources at your disposal? Does your contact list include everyone you know, not just from business but personal as well?

Review and update your contact list. Make sure everyone you know is on the list. Before making contact with a prospect, mine your contact list and seek out the ones who might know someone at your prospect. You may be surprised with the results. We all know that once you have a referred contact name, the task becomes so much easier.

Give it a try.

Good selling,
Richard

Thoughtful Thursdays - mmm love that morning coffee...

...and I have three suppliers to choose from. So why is it that I favour one over the other two?

Comparing the three options, lets look at the product offering first. Supplier number one has a good selection and features individual cup brewing. Supplier number also has a variety of coffees to choose from and supplier number three at this point has one choice. In the morning they are all busy, so the coffee is brewed often. In my case having a variety of blends to choose from is not a big advantage as I am not a fan of flavoured coffees. Freshness and flavour are important as I drink coffee straight up. There is no clear winner here.

What about price? They are all in the same range. The differences are not enough to cause me to make this the reason for choosing one over another.

Okay, is it convenience? They are easy to access. The favoured supplier is actually the furthest from my office.

Reviewing product, price and convenience the field is level.

If you said customer service, you would be correct. But what part of the service tips the scales? It is not the speed of being served or completing the transaction. Without fail it begins with a cheerful and sincere "Good morning" with a smile. Add to that the parting "Thank you" and finish with "Have a great day, see you tomorrow." If I happen to miss a day they ask where I was. They make me feel like they want to have and appreciate my business - every time I am there.

It is all about the experience of the transaction that makes me a regular at supplier number two.

Do all you can to make your customer's experience enjoyable and the added value will increase the likelihood of loyal repeat business.

Good selling,
Richard