It’s widely known that generating business with present customers is easier than converting a prospect into a new customer. In this case, the customer relationship represents a key sales role in order generation.

On the other hand, growing new customers ensures sales continuity and growth. As present customer bases change as a result of mergers, business failure, or consolidation, sales agents need to look to prospecting as a solution.

This article outlines techniques that have been successful for me and my colleagues for a good number of years in a number of industries. We believe that the intent of the prospecting effort is to “get in the door” with an appointment, or garner a “qualified lead.” Our strategy incorporates a disciplined, timely approach consisting of a brief introduction with a series of follow-up steps.

Pre-Contact Planning

Deciding upon frequency of contact — either by phone, e-mail, U.S. mail, or even a “drop-in” personal visit when convenient — represents the primary step in the planning. In most cases, unless there is a need to track ongoing activity and follow-up dates per prospect, only three to four contacts per year suffice to accomplish the prospecting effort. Too few calls result in a haphazard, purposeless plan. Too many contacts entail a litany of dogged, wasteful attempts to contact the prospect with little respect shown for his or her time. A succinct but fairly repetitive message — altered for special considerations such as budget times, price reductions, or new product offerings — over time “brands” your company as a significant player in the sales competition.

A second decision in the planning phase defines early on the person to be targeted for the sales effort. In any number of prospecting cases I’ve handled, the purchasing manager has been the “dead last” influence in purchasing authority. Rather, I have found several individuals usually share authority — plant managers, engineers; controllers or CFOs; and in small firms, the president or owner. It is customary to prospect several individuals at a single firm at different times of the year to solicit new business. I find it valuable to advise everyone on the “contact list” that I am in touch with others. Some of my contacts have recommended additional individuals in other departments to call or e-mail. They also have saved me time by mention of personnel departures and the existence of replacements.

Contact by E-mail

Spam detectors make prospecting rather rough going — and for good reason. I admit I don’t like spam in my mailbox either. Therefore, I make it a rule to use e-mail only after I have spoken to my contact first, or have been advised by his or her offices that it is the preferred method of communication. I use e-mail sparingly, usually after I cannot reach my contact by phone or if the individual prefers electronic messages.

On the other hand, I particularly like e-mail for document transmission, follow-ups on a specific issue, or “due date,” or sale qualification inquiry reply.

It’s important not to waste the prospect’s time. Therefore, I copy only those who are germane to the buying decision. Additionally, I carefully compose the “subject” caption of my e-mail. No need to keep the prospect guessing as to the real contents of the e-mail, or your communication may go unread. Likewise, prospects easily recognize the glitter of advertising hyperbole. Like tinsel, captions such as “read this e-mail to save 30 percent” or “This important cost-saving product will generate 30 percent return” may inspire disbelief and an immediate “delete” reaction from your prospect.

Rather, I find that a brief, pointed “subject” phrase, the shorter the better, ensures a “read” e-mail message. Examples that allude to a previous discussion or requested information work best: “Test results you requested this morning” or “Follow-up step per our call.”

Cold-Call Prospecting by Phone

Prior to call, it is necessary to devise a list, a script, and a follow-up date file (either computer-generated or manual file). The script should include an outcome possibility consisting of several alternatives:

• Appointment set.
• No appointment, but follow-up call date.
• Business card or other general information requested with a confirmation call regarding receipt of the materials, and follow-up call date.
• Submission of references, test results, and business card with a confirmation call as to the next step in the qualification process.

I prefer a factual, no-pressure script, including a voice-mail option message. The introduction should present the sales agent’s name and location, company name, the product and its application. A good script delivered “live” immediately queries the contact regarding his or her intention to consider the product. “Have you considered alternatives to the standard 3/8” diameter steel decorative currently on the market?” “What plans do you have for selecting the materials for your forthcoming project?” Such approaches invite the buyer to discuss some of the experiences resulting from past product trials or competitive product use.

If the call does not result in an appointment, a series of follow-up or continued prospecting calls will be necessary. If time permits, a question verifying call frequency can easily change your sales strategy for the better. “I usually contact the industry once every three months, is that good for you?” This question offers a two-fold benefit: It gauges the interest of the buyer; and it lets you know about the prospect’s “buying cycle.” A response such as, “Our fiscal year begins in July; call back last week in June instead” translates into increased probability for a sales appointment and vendor qualification.

Courtesy during the course of the discussion works to a prospector’s advantage. I thank the contact for speaking with me; and in the case of a former buyer, I mention that “We appreciate your business, and look forward to the chance of doing business again.”

As a final “clincher,” I recommend ending the call with a reference to an association statistic, a Better Business number or trade article commendation to cement your company’s reputation with the buyer.

Other Contact Means

By the way, succinct product information accompanying a personalized “snail mail” letter still works to open doors, more than many of my competitors would admit.

Last, when permitted, a “drop-in” call literally may open doors. For example, I have used this technique — sample in hand — when representing a shipping materials supplier.

The Gatekeeper

And now to reach the buyer or decision-maker when a gatekeeper adds to the challenge. Here are some tactics that lessen the possibility of a “shutout” from the gatekeeper:

• I do not introduce my name or my company name immediately, I merely ask upfront for the contact person by name.
• If I don’t have a contact individual’s name, I ask for a department (controller, engineering for example).
• If necessary, I inquire, “Who is the person who reviews your product selection for a specific project or use?
• I try to be kind to the gatekeeper; he or she may be a relative of the buyer or president of the firm.
• In the case of a “shutout,” I call in the next two weeks during lunch, early in the morning prior to usual business hours, or after 4:30 p.m., to select a department or employee automated directory.
• Early on, some gatekeepers demand, “Is this a sales call?” In this case, I tell the truth, but in my own way. A colleague of mine had the habit of answering: “Oh, absolutely!” In the quick silence that followed, he would add: “I’m trying to find out who is reviewing qualifications for new product selection.” He would then repeat his request to speak to the buyer. I prefer an explanation such as, “We’re attempting to determine when your company will entertain bidding or product entries for use. May I speak to (contact name)?”

Tracking a Potential Buyer

Perhaps the contact has left. I usually contact the buyer’s department or the gatekeeper in that case to ask who has replaced the contact. Once I obtain the new name, I re-address the sales effort.

However, the sales “chase” does not end there. I usually research my previous contact’s whereabouts. LinkedIn represents a fine starting point in my search. If the contact has been responsible for generating business for your company in the past, chances are he or she will not hesitate to recommend your company to his new employer.

In some cases, the contact’s replacement will know the whereabouts of your previous contact. Obviously, the best possible scenario entails the recommendation by your present contact, on the verge of retirement, that you call or meet the replacement. This ensures a seamless continuity in communication and strategic direction. The replacement is “on the same page” with you prior to your contact’s departure.

Association news also tracks movements of buyers in place and their promotions. A perusal of the “Personnel Changes” feature enables you to send personal congratulations when in order, but more important, to easily identify a new prospect’s contact.

Last Bit of Advice

I would recommend always to be courteous, be friendly but purposeful, and get to the point when communicating with a new prospect.

I get an appointment only once in a while, but that is fine by me. Those appointments have generated a discussion of our products, introductions which have translated into thousands — and over the years — millions of dollars in finalized sales.

And if the call or prospecting encounter did not go well? I remind myself that in another few months, I will have yet another chance to introduce our product. Chances are the prospect will not remember my fumbling; and even if so, will appreciate the improvement in my message delivery. In fact, some prospects may openly express their appreciation for your efforts. On occasion, prospects have acknowledged my attempts (“I see you’re out there trying to drum up business.”). Contacts such as these recognize your work as vital to your business — and remark that their own sales reps should likewise take the initiative.

Over time, a series of prospecting steps will solidify into a cohesive, exacting image of a very reputable firm and its useful product line. That’s the satisfying touch to prospecting for new business.

MANA welcomes your comments on this article. Write to us at [email protected].