Chapter 5. Strategic Prospecting and Preparing for Sales Dialogue Questions and Answers Fully Solved Graded A+

Chapter 5. Strategic Prospecting and Preparing for Sales Dialogue Questions and Answers Fully Solved Graded A+ Introduction - AnswersMost salespeople have to spend time prospecting to generate business from new customers and to increase business with existing customers. Although some salespeople are responsible for most of the strategic prospecting process, many firms are integrating the marketing and sales function with the latest technology to generate leads, qualify and prioritize prospects, and set appointments for sales dialogue. Significant revenue increases have been achieved from effective sales and marketing alignment with the integration of various types of technology. Studies have reported promising results when sales and marketing work closely together: 36 percent fewer leads were lost, sales efforts at closing deals were improved by 67 percent, and marketing generated 209 percent more value from marketing programs.* Consider how sales and marketing teamwork using different technologies produced improved prospecting in the following company examples: -ZoomInfo implemented an account-based marketing campaign to increase sales for a product. Sales and marketing worked together to create an ideal customer profile to include the company and buyer characteristics of their best customers. Customer relationship management (CRM), marketing intelligence, and sales automation tools were used to identify prospects that met the ideal customer profile. Marketing and sales synchronized their efforts to provide personalized communication attention to these targeted prospects. This strategic prospecting approach produced a large increase in the number of high-priority prospects and led to a 30 percent increase in the customer base for their product.* -Ricoh improved prospecting by using Marketo marketing intelligence software and its S CRM system to integrate sales and marketing. Leads were engaged through personalized conversations offe 5-1. The Importance and Challenges of Prospecting - AnswersProspecting is extremely important to most salespeople. Salespeople who do not regularly prospect are operating under the assumption that the current business with existing customers will be sufficient to generate the desired level of future revenue. This is a shaky assumption in good times, but it is especially questionable in the tough business environment of recent years. As market conditions change, existing customers might buy less. Or, customers might go out of business. Some customers might be acquired by another firm, with the buying decisions now being made outside the salesperson's territory. The salesperson could also simply lose customers due to competitive activity or dissatisfaction with the product, the salesperson, or the selling firm. Because there is typically a considerable time lag between the commencement of prospecting and the conversion of prospects to customer status, salespeople should spend time prospecting on a regular basis. Otherwise, lost sales volume cannot be regained quickly enough to satisfy the large majority of sales organizations—those that are growth oriented. Despite its importance, salespeople often find it difficult to allocate enough time to prospecting. Many salespeople do not like to prospect because of their fear of rejection. Today's buyers are busy, and many are reluctant to see salespeople. Changes in buying behavior are also making prospecting more difficult. Studies indicate that more people from different functions, positions, and locations are involved in the buying process with the average number increasing from 5.4 to 6.8, with these numbers expected to increase in the future. Many buyers are completing most of their prepurchase research online and may not want to engage with a salesperson until the process is over 50 percent complete. The larger number of people 5-2. The Strategic Prospecting Process - AnswersThe first step in the trust-based sales process presented in Chapter 1 is strategic prospecting. Strategic prospecting is a process designed to identify, qualify, and prioritize sales opportunities, whether they represent potential new customers or opportunities to generate additional business from existing customers. The basic purpose of strategic prospecting is to help salespeople determine the best sales opportunities in the most efficient way. Effective strategic prospecting helps salespeople spend their valuable selling time in the most productive manner.