CHAPTER 7

Are You Prospecting or Wasting Your Time?

The problem is too many salespeople spend time doing things they think are going to bring them prospects, when in reality all they’re doing is wasting time. For example, many salespeople can spend a ton of time networking with people who have zero potential of ever being a customer. They may even know there is zero potential, but they network with them anyway, thinking somehow these people are going to magically give them amazing referrals.

Counterintuitive Lead Generation

If you think finding leads is the responsibility of the marketing department and you don’t need to worry about it, do me a favor. Stop reading—not only this chapter, but also the rest of the book. Yes, a key part of marketing’s job is to find leads for sales, but sales also plays a crucial role in finding leads. I have yet to meet a top-performing salesperson who does not believe it is his or her responsibility to develop leads. Sure, they’ll take whatever marketing gives them, but they know the best leads and prospects will be the ones they find and cultivate themselves.

Before we go any further, let’s clearly define some key prospecting terms:

Leads—the names and contact information of people who you feel could be viable customers for your business. They may come to you as an inbound lead from marketing or, as I prefer, from activities you’re doing.

Prospects—people who you feel are qualified to one degree or another to become customers at some point. The most likely way they become prospects is due to the dialogue you’ve had with them.

Customers—people who are either already buying from you or are well-developed prospects with whom you are close to securing an order.

Depending on your industry, there can be slight variances with the definitions, but for the purposes of this book and our discussions going forward, this is how I will define these three groups.

A few years ago, a major automobile manufacturer hired me to help them develop a lead-generating program for their salespeople to use in all of their dealerships. Think about that task for a moment and what it says about the millions of dollars spent on ad campaigns and marketing programs used to attract customers. Even with all of the money the manufacturer was spending, they still weren’t reaching their potential. They felt (and their research confirmed) that advertising and marketing can do a great job of creating awareness and will drive some people to buy, but not enough people. Their ad agencies felt the best way to generate an even higher return on their ad budgets would be to use salespeople as part of the lead generation process.

As a salesperson, you want a strong marketing department. From my own experience as a salesperson, it was a lot easier to develop new business when marketing was doing their job, and doing it well. Marketing’s job is to create awareness and help develop leads, but top-performing salespeople in any industry know they also have to be prospecting.

The challenge is where to find the leads and, more importantly, how to make sure the leads you generate are good. The next chapter deals with qualifying leads. This is devoted to where to find them.

Who You Prospect Will Determine the Price You Get

Before we jump into discussing where to find leads, let’s get something basic (yet misunderstood) on the table right now. The type of leads you get will determine the price you get. The example I share whenever I’m speaking on this subject is, “You can’t take a Walmart shopper and make them a Nordstrom customer.” Walmart shoppers are price driven, while a Nordstrom customer is driven by fashion. Yes, both retailers would say much more than just that about their target markets, but I’m trying to keep this simple.

If you’re not getting the price you want, you might need to analyze more than just your selling process. The problem might be your prospecting process and specifically whom you’re targeting in that process. The price you get when you close the sale starts with the person at the top of your sales funnel. In B2B selling, this may mean you are targeting the right company, but not the right person.

Prospecting is not about going after whoever will talk with you or whoever you get routed to the first time you break through in the company you’re trying to reach. Prospecting is about focusing your efforts toward the person(s) with the greatest potential to deliver not just a sale, but also a sale at maximum price. The easiest guideline to follow is to remember buyers who buy based on tactical reasons tend to be economic buyers. Buyers who buy based on strategic needs are solution buyers. Solution buyers always will provide you with a better opportunity to maximize price. What does all this mean to you in the prospecting process? It means a lot.

The key is to determine early on why the prospect is willing to talk with you. If the prospect is not willing to share with you their strategic issues, then you’re not at the right level of the organization. Don’t fall for the idea that just because you’re talking with the “user” or “owner” of what you’re selling that you can maximize price. Many “users” are so low in the organization that they have zero control over budget, meaning even though they might be a “user,” they’re really nothing more than an economic buyer. If you sell baby furniture, you know the baby is the user of the furniture, but they’re certainly not the decision maker.

“Users” still can be a source of valuable information to you, but the person with whom you really want to enter into a sales conversation and identify as the potential prospect is the one who recognizes what you offer is a strategic benefit. Find the strategic-oriented prospect and you’ll find less pressure to discount your price when you close the sale.

We will dig into these issues more in the chapters to come, but in the meantime, I want you to always remember it’s not just about developing leads, but rather it’s about developing good leads you can convert into long-term customers.

Love the Ones You’re With

Never waste an opportunity to ask a current customer who else might benefit from what you sell. The key to turn these new leads into great leads is to ask the customer giving you the lead to introduce you to the new prospect.

A good friend of mine, Bill Cates, has made it his mission in life to show people how to get leads. His approach: ask a customer for a lead any time you have delivered value. He is so well respected he is called the “Referral Coach.” (Check him out at www.referralcoach.com/.) Few salespeople go this far when working with referrals, but those who do are top performers. After the customer has given you a name, ask the customer if they would be so kind as to introduce you to the person via email, telephone, or whatever other means possible. I’ll discuss this later on in chapter 16, which is devoted exclusively to the art of referrals.

Hug Your Competitor’s Customers

The reason these companies are not only just a lead, but also a great prospect, is because they’re already sold on what you sell. The only problem is they’re buying it from someone else. Engage with these people frequently. When the other person fails to deliver, you will be first in the customer’s mind as someone to call for help.

The thrill of picking up a new customer this way is incredible. To me, this approach is by far the easiest way to generate prospects because you don’t have to educate them—too many salespeople lose way too much time prospecting because the only leads they’re going after are ones they have to educate.

The number of salespeople who are afraid to use this approach surprises me. Not surprisingly, these are the same salespeople who continually struggle to make their numbers. Just keep in mind that if you’re doing it to your competitors, then if they’re smart, they’re doing it to you. Get the drift? The best way to keep a customer is to make sure you’re taking care of them.

Fill the Bus You’re Driving

Every organization has turnover—these days, people are constantly moving from one company to another. A great way to pick up a new customer is by having someone familiar with what you do take you with them to their new employer. Your existing customers also may have other divisions, operating units, etc. Again, this is an incredibly easy way to pick up new leads. I always aim to take the easiest approach possible, and I don’t care where I get the leads or business.

An easy way to gain additional leads from existing customers is to monitor closely who is copied on emails you receive from the company. Each name on the “cc” list is worthy of contacting. Even if you do this for no other reason than to better understand the business, it’s a good idea. It’s a bonus if you uncover new opportunities. The same goes for when you send an email to someone and you receive an automated reply stating they’re out of the office or unavailable. Often these reply emails include the name and phone number of who to contact if necessary. Guess what? It’s necessary! Contact them!

“Secret Societies” Don’t Have to Be Secret

The amount of business you can pick up from knowing how to leverage industry trade associations is amazing. I worked with one salesperson who, when she started out, focused exclusively on developing leads—and ultimately customers—from industry trade associations. Before long, she had a full pipeline and was making her sales goals.

Your first step when exploring trade associations or industries is to visit their websites and see if they have their membership rosters online. It may surprise you, but a number of groups do make their membership lists available. If that’s the case, go for it. Even more powerful than a membership roster is the list of members who are on the board or serve on a special committee.

These people are engaged and passionate about their industry, otherwise they wouldn’t serve their peers by being active in their trade association. This makes these people valuable not just as leads, but also as sources of great knowledge. These folks also are the ones other people in the association come to for advice. What better way to develop even more leads than by serving a board member well and having them refer you to others!

If you’re wondering how to reach out to these people, it’s simple. First approach is with a phone call. You merely state you found their names on the association website and you have a few questions about the industry. The key is to be legit! Don’t go blowing smoke. Remember, you’re looking for insights to help you better understand their industry so you can ultimately serve them better.

Use email if you can’t connect on the telephone, and place the name of the association in the subject line. They’ll spot the association name and likely take the time to read it. Your email should then contain the same questions you would have asked if you were speaking with them on the telephone.

Another approach with associations is to reach out to the staff of these organizations. Many times, the larger ones will have multiple people on staff. Ideally, contact the person in charge of membership. This person is gold—they’re talking with members all the time, and as a result, are going to know better than anyone what’s happening out there. It’s like getting an industry education for free!

Don’t Forget Your “Exes”

If I had a dollar for each blank stare I’ve received from salespeople when I shared the idea of reaching out to old customers, I’d be retired. The response I get after sharing this idea is something like, “I’m not going to do that! We really did some stupid stuff with them and I know they don’t like us.” How do you know how the customer feels? How do you know what they’ll say? You won’t know until you make the call. More often than not, the customer has long forgotten the mistake you thought was so fatal. If you don’t take the time to reach out and call every old customer who is no longer buying from you, you’re overlooking huge opportunities to build your business quickly. And if the customer does remember the poor job your company did, don’t you want a shot at correcting it? Sure you do! If you fail to correct it, you run the risk of the customer telling others about the problem, making your job even harder.

Contacting old customers is something I stress new hires should do immediately, because they can make the calls without any implication of being “part of the problem” should a customer bring it up. As the new person, you are reaching out because you’re eager to help and eager to show them the quality work your company can do.

Another great benefit of having a new person call all the old customers—it’s a great way for them to become educated on the company and the industry. I’ve found during the course of making these calls to old customers, many will share insights with the new person. What a great way for a new salesperson to get educated by making prospecting phone calls!

Years ago, a company called and asked to use my services to evaluate their salespeople. The objective was to find out what makes the top performers the top performers, and then see if the company could replicate those qualities in other salespeople. The first task I did was to look at the numbers each salesperson was turning in and compare those to their time in their position and the current market.

One person’s numbers jumped out to me immediately. She was a recent hire who was right out of college and she had zero industry experience. In less than six months, she had moved from the bottom of the list to the middle of the list and was trending to go even higher. I immediately contacted her to find out what she had done. After getting over the shock of me calling (and thinking she had done something wrong), she explained she had just done what her boss had told her—contacted a massive list of old customers that past salespeople had walked away from or the company had let slide away. All she did was call each one and from there, poof! The business began flowing!

A “No” Is Never Permanent

Just because they chose not to buy from you once doesn’t mean they won’t buy from you now. A “no” from a prospect is never permanent; a “no” is only a period of time. Reach out and contact them again. Don’t let whatever you heard a year ago, a month ago, or even a week ago stop you. What happened yesterday is not an indicator of what might happen today. It’s amazing the number of professional buyers and purchasing agents who tell me that too many salespeople go silent on them after losing an order to a competitor or a decision not to buy. To me this puts a bad stain on the sales community. It makes it look like all we’re about is a quick sale, and if we don’t get our way, we run home to mommy and pout. You might have not received the order yesterday, but that is no reason to stop reaching out. Be professional and have confidence you have something of value that can help the customer. The only way they can see how much you can help them is if you convince them to buy from you.

Find New Dance Partners

I’m not saying to dance with your immediate competitor, but without a doubt there are salespeople in your industry who sell things that you do not. So, it only makes sense to help each other out. Develop relationships with them, because not only are you looking for potential customers, but they are too. Share names and insights so you both succeed.

One trick I like sharing with salespeople is a method to use if they’re consistently unable to get past the switchboard. If you have a situation like this, listen to the prompts and press the appropriate number to connect with the sales department. I love this approach, because the salesperson who answers is typically going to be a junior salesperson, somebody new to the company likely trying to build their sales, too. Introduce yourself as a fellow salesperson and tell them whom you’re trying to reach. You’ll be amazed at how quickly most salespeople will help you because you are another salesperson. Go one step further and ask if they will connect you right then on the phone with a personal introduction.

Over the years, I’ve shared this approach with thousands of salespeople, and each time I am met with shock at how simple the idea is. Occasionally, I receive a call back a week or so later from a salesperson saying how they used it and it worked beautifully. Remember, just as you were looking for assistance with a lead, the salesperson who helps you also is looking for leads. Don’t end the conversation without trying to help them in their jobs.

Know Your Purchasing Department

Get in touch with your purchasing department and ask for a list of suppliers and contacts. You’ll be surprised at the response you get. Some will push back, but most will be cordial and provide you with names and contact information. Of all of the ways to develop leads, this approach is one that salespeople are least likely to use, and yet it can generate huge opportunities because so few other salespeople use it! The supply chain is far more interwoven than most salespeople realize.

Who Are Your Customer’s Customers?

Too many salespeople fail to dig in and understand who the customer is selling to. It’s amazing what you’ll find when you set out on a quest to gain new insights. Not only will you find out how to serve your existing customers better, but you also will hear insights regarding other people or companies you can contact.

A salesperson with whom I shared this idea said she had tried it, and when word got back to the customer, that company’s marketing department contacted her. The marketing department was eager to learn what she found out from contacting their customers. The result from the effort was the salesperson picked up new leads and prospects that turned into clients, plus she became a hero and near cult-like figure with her original customer. From that point on, the salesperson virtually owned the customer, because they saw her as being so valuable.

Search Your Search

Your level of research needs to be only enough to provide you with what you need to make the first contact. There is zero reason to precede every call with the type of research you might have done for a college paper. Leveraging search engines such as Google can provide incredible insights, but the important thing to remember is there is no need to get carried away. I see far too many salespeople hesitate making a prospecting call because they want to do more online research. I use the Internet to do three things with regard to prospecting:

Identify potential companies and people to prospect

Identify specific contact information

Identify a reason for the call

I can’t emphasize enough the importance of not getting lost in the details. All you really need is one piece of information—that’s it! The only exception to this would be if you’re directly calling the CEO of a Fortune 500 company or are selling something so massive (such as jet aircraft or an entire office park complex) that you need to do significant research. Excuse me for assuming, but that’s likely not you! Do a quick search, make the call, and move on.

If you insist on going deeper in using the Internet, I suggest you learn from who I believe is the smartest person on the subject: Sam Richter. He’s amazing, and if you sit and watch how he leverages the search capabilities of Google, it will blow your mind. Check him out at www.SamRichter.com.

Calling Your Friends Is Not Prospecting

I’m not saying you can’t talk with friends or associates. I’m simply suggesting that you talk to these people after you’ve done your prospecting. Here’s a simple rule to keep in mind: unless someone has given you a solid referral in the last twelve to eighteen months, don’t go thinking they’re suddenly going to do it now if you spend more time with them.

Prospecting is about reaching out to people who have the potential to do business with you or can refer you to people who can. Everything else is not prospecting. Take a look at your calendar. Make a list of the phone calls you make. How much time are you spending each week talking with people who aren’t helping you achieve your sales prospecting goals? When I ask salespeople this question, I always get a response that implies this is certainly not a problem for them. What is interesting is when I start probing and challenging them on their time, it’s amazing how they begin to realize they do spend an enormous amount of time with people who are anything but sales prospects. Keep a log of all of the time you spend either meeting in person, making phone calls, or trading emails with people who are non-prospects. You’ll be surprised at what you find after a week. Your objective should be to reduce that time by 50 percent—after all, it’s impossible to eliminate all conversations of this type.

Use the time you save by turning it into additional sales prospecting time. If you were to add one hour a week to the amount of time you could be prospecting, it would equal an additional week in one year. There is zero reason for any salesperson—regardless of what they sell, how they sell it, or where they sell it—to be unable to develop a list of leads to keep them busy. If you’re not finding enough leads, the first thing you should do is check your attitude. Chances are you’re racing right past some great opportunities.