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