How to Avoid Chasing Prospects

Avoid pursuing every lead. These four words are definitely a challenge to follow for people involved in sales! An instant of self-reflection is time enough for even the most aggressive salespeople to recognize there are unsatisfactory prospects to chase. It’s relatively easy to walk away from a prospect with a minimal amount of money and no prospective order in sight. Learning the technique of walking away from a well-to-do individual who doesn’t fit the product or service you’re selling is a honed skill that will save you time and energy.

How to tell if a prospect is the right fit

There are two elements salespeople generally evaluate before deciding if a prospect is worth pursuing:

1. The company has ample resources to make pursuit beneficial to the seller.
2. The company needs and/or has use for the product or service being sold.

As good as this plan sounds, there’s more to consider before wasting a lot of time pursuing a goal that may already have a predetermined finish. A prospective client that fits the two elements may respond to an overload of pressure from the salesperson by requesting a Request for Proposal, or RFP.

RFPs are usually a waste of time, although they are generally required to satisfy corporate or government regulations regarding labor and/or purchases put out for bid. It’s typical to see a request written in a fashion that lists the strengths and qualifications of a preferred vendor who almost always gets the contract. It doesn’t make sense to expend talent, money and time to complete demanding forms and attend mandatory selection boards when the effort can be applied to more likely opportunities.

What’s the secret of avoiding this trap? Start by identifying the characteristics of each solid prospect. Sound easy? Determining the qualities of a worthy prospect requires more than a casual glance. There’s no typical list because qualifications change from company to company. For instance, the criteria for two service firms in the same industry, such as food service, can differ greatly.

That variation affects the way an ideal prospect is identified. Even manufacturers of automobile parts working in the same area are likely to have dissimilar perfect prospects. Establishing the precise prospect requires additional effort, as a result. The idea is to scrutinize the customer base to find each company’s best customers and why they hold that position. The resulting answers will provide the features of the model prospect.

Performing a customer analysis

In short, it’s essential to consider more than a customer’s need for a service or product and what they have to spend. A thorough customer analysis will provide every reason that a company is a good fit and worth chasing. The evaluation results in the ideal customer’s profile. The following six points are usually a part of the results:

• The solution presented matches the customer’s needs.

• The customer is pleased about the company’s method of selling.

• The company either is given or has the opportunity to earn access to significant decision-makers.

• The customer is a good fit regarding technology, operations and service.

• The two companies demonstrate a strong fit politically, culturally, demographically and philosophically.

• The customer is prepared to buy if the return on investment is right

Compatibility is a critical part of targeting the top prospects in any sales venture. Achieving compatibility in all of these areas generally results in long-lasting relationships. Not only is it easier, it is less costly to sell to existing accounts rather than new ones.

How to determine prospects by using the profile

The profile significantly reduces the number of likely prospects. As disappointing as it sounds at first analysis, the shrewd salesperson will quickly grasp its value. Sales tactics like effort, company resources, and time are wisely focused on prospects who are likely to purchase goods and/or services. Sales cycles are quicker when the correct prospects are targeted because access to key decision-makers is rapidly achieved. As previously mentioned, the right prospects typically become faithful, long-term customers.

Develop the perfect prospect’s profile by figuring out the attributes of your best customers. You’ll benefit by using it as a guide through any sales process.

Is there any particular way to use the profile to increase its effectiveness during the sales process? The simple answer is “yes”. Like any tool, it must be used properly. Create a written version to use as a guide throughout any sales procedure. Avoid deviating from the guide in order to hide or excuse a great deal of time or expense already spent on an unlikely prospect. The profile is a valuable tool because it demonstrates how to identify prospects that fit and are worth exerting effort, time and energy.

If the profile shows that a current prospect is a substantial mismatch on a key element, don’t adjust the results. Simply accept the bad fit, adjust your expectations, and treat it as a warning to proceed with caution. There is a chance it’s a tiny rough patch and the companies are still compatible. If other differences continue to show up, recognize it as a bad fit and cut your losses.

Recognizing the value of the perfect prospect profile

The perfect prospect profile may be a challenge to work with at first. Its true value becomes apparent over time when the clear results of its application are displayed. The three top results of targeting ideal prospects are:

• Shorter sales cycles.

• Fewer sales lost to competitors or not being made.

• Productive, focused sales efforts.

The advantage of sensibly choosing ideal prospects is that they often turn into model customers who encourage long-standing relationships. The idea of selectively pursuing prospects tends to go against the grain of a salesperson’s instincts. However, the swift benefits and long-term benefits quickly pacify any misgivings about mismatches equaling missed opportunities. The actual lesson is all that’s missed is wasted effort and time.

Gregg Swanson is a sales performance consultant and business coach and has authored several books and numerous articles on peak performance. Gregg specializes helping sales professionals develop mental strength for optimum sales performance.  You can pick-up your complementary report, “The Most Critical Step in Sales” by going HERE.