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In-Class Assignment-6-Chapter-6. Prospecting Chapter Summary Common causes of customer attrition include: . The account may have a one-time need or there is an extended period of time between purchases. b. Customers may move to a new location outside salesperson's territory. A firm may go out of business or merge with another company. d. Loyal buyer or purchasing agent may leave his or her position due to promotion, retirement, or serious illness, replacement may prefer to buy from someone else. Sales are lost to the competition 1. A company or salespersons want to grow and increase the size of their business Progressive marketers are doing three things to improve the quality of the prospecting effort a. Increase the number of people who board the Ferris wheel b. Improve the quality of the people who board the Ferris wheel Shorten the sales cycle by quickly determining which of the new prospects are qualified prospects The major sources of prospects are: (1) referrals, (2) endless chain referrals, (3) Referral letters and cards, (4) friends, family members, centers of influence, and acquaintances, (5) directories (6) trade publications, (7) trade shows and special events, (3) telemarketing (9) direct response advertising and sales letters, (30) websites. (11) computerized databases, (22) cold calling (13) networking (14) educational seminars, and (15) prospecting by non-sales employees Summary Chapter-6. Prospecting (Continued) At the close of each sales call, the salesperson using the endless chain method asks the prospect to suggest the names of others who might benefit from owning the product Networking, in very simple terms, is the art of making and using contacts. Networks are people talking to each other, sharing ideas, and exchanging information. A real estate salesperson, for example, might consider joining local organizations (Lions Club, Chamber of Commerce, etc.) for the purpose of making contacts The process of identifying prospects that should be contacted is called Qualifying Most salespeople use specific criteria to quality prospects. The qualifying process involves finding answers to several basic questions a. Does the prospect have a need for my product? b. Can the prospect make the buying decision? c. Can the prospect pay for the purchase? d. Will anyone close the sale? Sales intelligence is needed today over and above sales data because prospects are looking for insights and knowledge from salespeople above and beyond the product features and benefits. In many buying situations today, prospects using advanced search engines have already learned about features and benefits. In terms of sales intelligence, prospects and accounts expect salespeople to know answers to many of the following questions. (1) Do you know me? (2) Do you know my company and my marketplace? (3) Do you have any special value-add? Answers to these questions create much of the value that results in successfully turning prospects and comme Questions: In-Class Assignment-6 Discussion Questions 1. List and briefly explain the common causes of customer attrition 2. Describe three steps progressive marketers are taking to improve the quality of the prospecting and account development effort. 3. List the major sources of prospects. 4. Explain how the endless chain referral prospecting and account development method works. 5. What is "networking"? How might a real estate salesperson use networking to identify prospects? 6. What does the term "qualifying" mean? What are the four basic questions that should be answered during the qualifying process? 7. When is sales intelligence important? What are the three most important pieces of sales intelligence a salesperson needs to know