The selling process follows a framework of seven steps for all products that are sold. This selling model has existed for over a century, despite many changes in technology and culture. The selling process consists of seven steps: 1. Prospect and Qualify, 2. The Preapproach, 3. The approach, 4. The Presentation and or Demonstration, 5. Overcoming Objections, 6. Closing the Sale, and last but not least, 7. Follow-up. In the next several units, we will study, in further detail, each of the seven steps and give you the tools necessary to become an effective salesperson. In Unit 2, we will discuss the first step in this process: Prospecting and Qualifying.
Completing this unit should take you approximately 2 hours.
Not everyone is a potential customer, so it is important to know how to find the customers who can grow your market share. It is also important to qualify the customer; do they have the power and resources to make the purchase decision?
Prospecting and qualifying potential customers is the first step in the selling process. Read these sections to start our discussion of this process. Note the difference between a lead and a prospect.
In this video, we will learn the importance of asking for referrals from our satisfied customers.
Screening potential customers to determine their current needs is a practice that goes hand in hand with prospecting and qualifying potential customers. A prospect is a lead that is qualified and ready, willing and able to buy. Not all leads are prospects. They may not have the resources or the authority to make the purchase decision.
Read this section to learn more about finding your prospects. Knowing where to find your qualified prospects is the key to your success in turning prospects into customers. Focus on the Top 10 Prospecting List. These are great sources to help you find qualified leads in your specific industry. Note the number 1 source is existing customers. Research has shown that attracting a new customer costs five times more than retaining a current customer.
There are four major ways to segment the market and target your potential customers. You will learn that some customers are more valuable to you than others. In this article, you will learn about the Pareto principle. An example of the Pareto principle to your work as a salesperson says that approximately 80% of your sales will come from about 20% of your customers. Targeting the right customers with the highest market potential is important. Always keep in mind that not everyone is a potential customer.
After you establish your target market, you then qualify your leads, making sure that they have the need for your product, the resources to purchase it, and the authority to make the decision. Then you compile a list of the potential customers you will pursue, remembering that some customers are more important than others.
Take some time to review different companies and how to reach key people in these organizations. At the end of the section, answer the questions. After that, read the Role Play case and answer the questions from the perspective of the Controller and the Account Source Sales representative.
In sales, it is very important to call on the right targeted customers who have the potential to help you gain market share. Social media has really helped marketers to target the right prospects on the right social media channels.
You must know who your perfect customer is and how to reach them. Social media is a great way to obtain qualified leads because you can disqualify the potential customers you don't want through your advertising. Then you can nurture your qualified leads. Having an ideal customer profile is important to know who you should target your efforts toward. Once you know who you are targeting, you must figure out how to target them.
This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.
Watch this as you work through the unit and prepare to take the final exam.
You can also download the presentation slides so you can make notes.
We also recommend that you review this Study Guide before taking the Unit 2 Assessment.
Take this assessment to see how well you understood this unit.