The term “prospecting” means finding potential customers for your business. It’s a disciplined approach to identifying and engaging with potential customers to generate new business. It involves reaching out to prospects, setting the sales process in motion, and ultimately driving revenue. Whether you are part of a large corporation or a small business, sales prospecting is a critical function that fuels business growth. Sounds daunting, right? It isn’t always comfortable, but it doesn’t need to be scary. Once you get organized, I guarantee you will feel more confident.
Successful sales prospecting requires a methodical approach and a positive mindset. Half the battle is being prepared by creating a prospect list, and the other half is putting yourself in the right mindset to do the job. In this blog, we'll walk through the steps to identify some potential prospects and create a solid list to pursue.
By the way, in a previous blog article titled “Selling? Yes, You Can!” I wrote more about how selling is a process and how it’s important to document your progress. This blog focuses on brainstorming potential prospects and creating a solid list to pursue. Documentation at this stage is crucial. Whether you prefer electronic tools or pen and paper, the key is to write it down and stay organized. Let’s get started!
STEP 1: Identify Your Growth Opportunity and Target Market
What is your growth opportunity? A growth opportunity can be anything that helps to increase a company's size, revenue, market share, and profitability over time. Small businesses have many opportunities for growth. Some examples include:
Market Expansion: Obtaining new customers for your core business.
Market Penetration: Introducing a new product or service to your existing market.
Diversification: Selling additional products or services to your current customers.
Market Development: Selling existing products or services in new markets.
Clearly defining your growth opportunity is crucial as it sets the foundation for your prospecting efforts. Write out exactly what you are trying to achieve by creating and working through the sales process. This helps you stay focused and ensures that your prospecting aligns with your overall business goals.
Next, write down a detailed description of the customer you are targeting with your specific growth opportunity. Be as specific as possible, considering factors like demographics, behaviors, needs, and preferences. Refine both your growth opportunity statement and your target market description until they are precise and actionable.
STEP 2: Identify Everyone You Know Who Could Be a Prospect
Start by making a list of everyone in your network who could potentially be a prospect. This includes current and past customers, family, friends, acquaintances, and business associates. Think broadly about your connections. Anyone in your circles could provide an opportunity. This is a brainstorming exercise, so don't worry if someone is a good prospect or not; write down anybody who comes to mind.
The goal is to generate a comprehensive list without overthinking it. By identifying people you know who fit your target prospect profile, you can gain a better understanding of what your ideal customer looks like. Even if some individuals on your list aren't direct prospects, they can help refine your target market description and possibly refer you to others who might be a better fit.
STEP 3: Compare Your List to Your Target Market
Once you have a comprehensive list, it's time to refine it by comparing it to your target market. Edit out names that do not match your target market criteria. If you are unsure about a contact, keep that person on the list for now. Spend some time researching these individuals to determine if they fit your target profile.
Research each contact's background, business, and needs to see if they align with your growth opportunity. Then, organize your list into categories such as 'Potential Prospects,' 'Unsure,' 'Not a Fit,' and 'Potential Referral.' This will help you prioritize your efforts. By continuously refining your list, you'll be better prepared to focus your energy on the most promising prospects.
STEP 4: Add Additional Prospects to the List
You have a good start, but you will need to continue to add new possibilities to your list. How do you do this? Here are some tips:
Spend time in places where your target market resides. Think about events and volunteer opportunities where your target customers will be. Attend, meet people, and get involved! But be strategic about it and make sure you will come into contact with potential customers. Your time is valuable.
Have a good answer to the question, “What do you do for a living?” When meeting new people, this question is bound to come up. Let’s say you are the owner of a boutique. You could say, “I own a clothing store.” Or you could say, “I own a boutique on Pine Avenue. We specialize in classic and comfortable clothing for women. We also carry casual handbags and accessories.” By providing more information, you have the opportunity to engage in a more meaningful conversation about your business.
Stop talking and listen instead! Contrary to popular belief, the best salespeople do not talk much! They ask open-ended questions and really listen to the answers. By getting to know people and their needs, you will form a natural relationship and be able to understand if they are in your target market. This will allow you to explain your business in a way that makes sense.
These strategies will help you continually expand your list and connect with new potential customers.
STEP 5: Work on Your Referrals
Customer referrals are invaluable for business growth. They come with a built-in level of trust, so they’re excellent prospect opportunities. To capitalize on them, track your referral rates and express gratitude to those who refer new business, ideally with personalized thanks and small gifts. Identify and reward your top referrers, making it easy for customers to share your contact details and access your up-to-date website. Simplifying the referral process and recognizing your referral champions can lead to sustained business growth. Check out my growth strategy blog article on how to capitalize on customer referrals to learn more about how to accelerate your business growth and profitability through effective referral strategies.
Lastly, you should know that prospecting is not a one-and-done exercise. It's an ongoing process that’s critical for business growth. As your growth opportunities evolve, so should your prospect list. Today, you might focus on market development, while in six months, you may shift to diversification or selling additional products or services. Additionally, your network will continuously expand over time, offering new opportunities for business growth. Regularly revisiting and updating your prospect list ensures that you are always prepared to seize new opportunities. Ready to grow your business? As a business coach and consultant, I specialize in helping women entrepreneurs succeed. Let's connect for a complimentary session and create a tailored plan to drive your success. Reach out to me today!
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