WHAT MAKES A QUALIFIED PROSPECT, QUALIFIED?
WHAT MAKES A QUALIFIED PROSPECT, QUALIFIED?
Am I using a consistent sales system or process to successfully obtain the information needed? Here are 17 areas with questions you may want to ask yourself so you can create a qualified prospect profile also known as an Account Sales Profile™.
Basic Demographics
Ask yourself "Which type of organization do I make the most money when I make a sale?" Is it a company with 10 employees or 100 employees? Does the company have over $10 million in gross sales or over $100 million in gross sales?
Are most of my customers in the Retail Industry or the Financial Industry? What types of organizations will provide the highest payoff in return for your limited amount of selling time?
In summary, what are the demographics of your most profitable accounts in terms of...
> Industry Verticals (such as Software, Printing, Frozen Foods, etc.)
> Total Gross Sales
> Total Number of Employees
> Products, Services or Solutions
Business Practices
How does the account currently conduct business?
Where is Mr. Prospect now?
How did the Mrs. Prospect conduct business in the past?
What is the Mr. Prospect's future strategic direction?
Where does Mrs. Prospect want to be?
How does the Mr. Prospect plan to get there?
Needs, Problems, Challenges, Critical Business Issues, Pains or Drivers
Is there a perceived or unperceived need for your solution?
What are the needs, challenges or problems Mrs. Prospect facing?
What is keeping them up at night?
What is required to solve the problem and does your solution fit the bill?
Is Mr. Prospect actively searching for a solution, which you can provide?
Does Mrs. Prospect have any current or future business initiatives?
Has Mr. Prospect expressed an interest in what you have to offer?
Does Mrs. Prospect have a compelling business issue that needs to be solved?
Is Mr. Prospect using outdated products and services, which may need to be replaced?
Is there a need for a specific product or service but Mrs. Prospect can't afford the time or money or man hours to build their own solution?
Is Mr. Prospect using some type of solution and not yet seeing business results?
Is Mrs. Prospect starting to look at competitors?
Has a specific person been assigned to find a solution to a specific need?
Does your Mr. Prospect have a serious intention to buy or are they just being time wasters or tire kickers or a just send me something?
Time-frames
What are the time-frames for...
The RFI or RFP or RFQ (Request for Information, Proposal or Quote)
Evaluation period
Decision date
Roll-out of a pilot solution
Implementation of an enterprise wide solution
Budget
Does Mr. Prospect have a budget already set aside?
Can Mrs. Prospect get it from someone else's budget or next year's budget?
At what level are further sign-offs required? ($10,000, $50,000? 100,000?)
What amount is budgeted for a solution?
Is there a deadline where Mr. Prospect will lose the budget or funding (usually in schools or government organizations)?
Good Fit
Does your solution make good business sense?
Can we establish an ongoing relationship?
Have you calculated the ROI (Return on Investment)?
What is the Net Payback Period or how fast will the solution pay for itself?
Have you created a cost justification (Cost over time versus Savings over Time)?
What would make them smile?
Is Mr. Prospect's business growing or is in or headed for trouble?
Has the account bought into the vision or proposed solution?
Can our solution help Mrs. Prospect produce tangible or measurable results to calculate a ROI?
Is there a fit with the current products and services in use or will additional products and services be required?
Is the Mr. Prospect willing take specific action(s) towards a solution?
Evaluation Criteria
What is the evaluation criterion, if any? Will they fax it to you?
Do you have a criterion you can provide them with?
The final decision is based on what factors?
Is there an agreement on what is important or what is of value?
Have evaluation criteria been defined?
Business Impact
What is the cost of inaction or taking the wrong action?
What are the consequences or penalties if the account does not take action by a certain date?
What is the cost of losing a customer?
What is the cost of acquiring a customer?
How much would an addition to the head count cost?
What is the cost of shopping cart abandonment in their web store?
What is the cost of additional training and the time spent away from the job while learning?
Have you calculated the cost of the business impact?
What does Mrs. Prospect personally stand to gain or lose if a solution is or is not implemented?
Processes
What are the exact evaluation, budgeting and decision-making processes?
Who does the negotiating?
What is negotiable and what is non-negotiable?
Who signs the final Agreement?
What are the payment terms (Net 15, Net 30, etc.)?
Is a purchase order required?
People
Who will be involved or influence the final decision?
This can be one or different individuals.
Is there an individual (or individuals) that understands the value of your product or service, but has not found a good fit yet?
Have all the key stakeholders been identified and contacted?
Are you speaking with the correct contact, which, assuming you have the right solution, has the authority to buy?
Do you know how much authority Mr. Prospect has before further approvals are required?
Who are the decision-makers, evaluators, influencers, and end users of your potential solution?
Final Decision Maker(s) signs the check.
Motivation: What is the effect on our bottom line?
Evaluator(s) screens out and says no.
Motivation: What is the best solution that meets our needs?
Guide(s) want to help guide you through the process.
Motivation: I like your solution. How can I help you get your solution as the one chosen?
End User(s) are concerned about the effect on them and their job.
Motivation: Will it make my job easier or harder?
Initiator(s) want to look good.
Motivation: How can I show that I did a good job of gathering information?
Purchasing/Legal/Contracts are responsible for negotiating the terms and conditions.
Motivation: How can we get the most favorable terms and conditions for our company (i.e. additional discounts, extra technical support or consulting services, lower pricing, more training or extra sets of documentation, better payment terms, guarantees, etc.)?
Organizational Chart
What is the formal and informal organizational structure?
Who reports to whom?
Who influences whom?
Who are the counterparts, back-ups, peers and subordinates?
Who are the assistants?
Do you have all names and titles spelled correctly?
Do you have the correct street address (room, floor, suite, mail code, etc.),
e-mail addresses, fax numbers and extensions?
What are the responsibilities of each of your contacts?
Products and services
What types of products and services are currently in use?
Does the prospect have the necessary people, time, money and equipment in place or available to implement your solution?
Could the correct environment to support your solution be put in place?
Competition
What other companies are also being considered and why?
Who is favoring the other company's solution and why?
What is it Mrs. Prospect likes or dislikes about their current supplier?
If Mr. Prospect had a wish list and could have or change anything he wanted with their current or a potential supplier, what would be on the list?
Locations
Are decisions centralized (one location makes the decision for all locations) or decentralized (each location decides for themselves)?
How many locations, subsidiaries, partners, alliances and/or joint ventures are there and do we do business with any of them?
Is it possible to sell your solution on an enterprise wide basis rather than a departmental or business unit basis?
Do any other locations have an existing relationship with your company, partners or affiliates?
Confidence
Does Mr. Prospect trust you?
Have you established credibility?
Does Mrs. Prospect know the company you represent?
Does Mr. Prospect believe you sincerely have their best interests at heart?
Does Mrs. Prospect have confidence in your company's ability to provide them with and support your solution that works?
Resources
Does Mr. Prospect have the time and staff necessary to conduct an evaluation?
Does Mrs. Prospect have the time and staff necessary to prepare a cost justification?
Does Mr. Prospect have a budget available or access to discretionary funds?
Does Mrs. Prospect have the right physical environment for your solution?
What are the bare minimum requirements for your product or service to work?
Next Steps
After summarizing your conversation, follow up with a next step question such as:
"What's next?" or "What's the next step?"
"Where do we go from here?"
"If we had a solution that would help you do a better job than your current solution what is the process you go through to look at new solutions?"
"What do we need to do to move forward on this?"
What actions need to be taken by you and the prospect to get them to evaluate your solution?
Have you set up a Sales M.A.P. (Mutually Agreed upon Process(tm))?
What day and time do these actions need to be completed by?
What is the time-line or what are the milestones for moving the sale to its completion?
Next steps need to be time and date specific. "I'll call you back next month" is not the same as "We'll speak next Tuesday at 3 p.m. Eastern Time to discuss the merits of the proposal after you have had the opportunity to review it with your peers, correct?"
Examples of Next Steps
Do you have permission to send literature, an email or a fax while also setting a specific date and time to call to be sure the information is received and to answer questions or discuss the materials?
Is Mrs. Prospect willing to accept your proposal or do they want a demonstration or presentation?
Is a call required to answer or clarify any complex issues?
Are you in the habit of following a phone call with a fax or an email?
Do you follow a fax with a phone call or an email?
What about following an email with a phone call or a fax?
Conclusion
If you or your sales force has not defined the characteristics of a most profitable prospect, it is time to do so. Consistency of definitions and the use of a well-defined sales system result in qualified prospects that are well qualified and ready to buy what you are selling.
WHAT MAKES A QUALIFIED PROSPECT QUALIFIED - To learn more about this author, visit Ron La Vine's Website.
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Have you ever asked yourself, what are the specific characteristics of a qualified prospect? What are the minimum pieces of information I need to know to determine if the potential for a sale exists? What pieces of information are required before you consider a prospect qualified?
Am I using a consistent sales system or process to successfully obtain the information needed? Here are 17 areas with questions you may want to ask yourself so you can create a qualified prospect profile also known as an Account Sales Profile™.
Basic Demographics
Ask yourself "Which type of organization do I make the most money when I make a sale?" Is it a company with 10 employees or 100 employees? Does the company have over $10 million in gross sales or over $100 million in gross sales?
Are most of my customers in the Retail Industry or the Financial Industry? What types of organizations will provide the highest payoff in return for your limited amount of selling time?
In summary, what are the demographics of your most profitable accounts in terms of...
> Industry Verticals (such as Software, Printing, Frozen Foods, etc.)
> Total Gross Sales
> Total Number of Employees
> Products, Services or Solutions
Business Practices
How does the account currently conduct business?
Where is Mr. Prospect now?
How did the Mrs. Prospect conduct business in the past?
What is the Mr. Prospect's future strategic direction?
Where does Mrs. Prospect want to be?
How does the Mr. Prospect plan to get there?
Needs, Problems, Challenges, Critical Business Issues, Pains or Drivers
Is there a perceived or unperceived need for your solution?
What are the needs, challenges or problems Mrs. Prospect facing?
What is keeping them up at night?
What is required to solve the problem and does your solution fit the bill?
Is Mr. Prospect actively searching for a solution, which you can provide?
Does Mrs. Prospect have any current or future business initiatives?
Has Mr. Prospect expressed an interest in what you have to offer?
Does Mrs. Prospect have a compelling business issue that needs to be solved?
Is Mr. Prospect using outdated products and services, which may need to be replaced?
Is there a need for a specific product or service but Mrs. Prospect can't afford the time or money or man hours to build their own solution?
Is Mr. Prospect using some type of solution and not yet seeing business results?
Is Mrs. Prospect starting to look at competitors?
Has a specific person been assigned to find a solution to a specific need?
Does your Mr. Prospect have a serious intention to buy or are they just being time wasters or tire kickers or a just send me something?
Time-frames
What are the time-frames for...
The RFI or RFP or RFQ (Request for Information, Proposal or Quote)
Evaluation period
Decision date
Roll-out of a pilot solution
Implementation of an enterprise wide solution
Budget
Does Mr. Prospect have a budget already set aside?
Can Mrs. Prospect get it from someone else's budget or next year's budget?
At what level are further sign-offs required? ($10,000, $50,000? 100,000?)
What amount is budgeted for a solution?
Is there a deadline where Mr. Prospect will lose the budget or funding (usually in schools or government organizations)?
Good Fit
Does your solution make good business sense?
Can we establish an ongoing relationship?
Have you calculated the ROI (Return on Investment)?
What is the Net Payback Period or how fast will the solution pay for itself?
Have you created a cost justification (Cost over time versus Savings over Time)?
What would make them smile?
Is Mr. Prospect's business growing or is in or headed for trouble?
Has the account bought into the vision or proposed solution?
Can our solution help Mrs. Prospect produce tangible or measurable results to calculate a ROI?
Is there a fit with the current products and services in use or will additional products and services be required?
Is the Mr. Prospect willing take specific action(s) towards a solution?
Evaluation Criteria
What is the evaluation criterion, if any? Will they fax it to you?
Do you have a criterion you can provide them with?
The final decision is based on what factors?
Is there an agreement on what is important or what is of value?
Have evaluation criteria been defined?
Business Impact
What is the cost of inaction or taking the wrong action?
What are the consequences or penalties if the account does not take action by a certain date?
What is the cost of losing a customer?
What is the cost of acquiring a customer?
How much would an addition to the head count cost?
What is the cost of shopping cart abandonment in their web store?
What is the cost of additional training and the time spent away from the job while learning?
Have you calculated the cost of the business impact?
What does Mrs. Prospect personally stand to gain or lose if a solution is or is not implemented?
Processes
What are the exact evaluation, budgeting and decision-making processes?
Who does the negotiating?
What is negotiable and what is non-negotiable?
Who signs the final Agreement?
What are the payment terms (Net 15, Net 30, etc.)?
Is a purchase order required?
People
Who will be involved or influence the final decision?
This can be one or different individuals.
Is there an individual (or individuals) that understands the value of your product or service, but has not found a good fit yet?
Have all the key stakeholders been identified and contacted?
Are you speaking with the correct contact, which, assuming you have the right solution, has the authority to buy?
Do you know how much authority Mr. Prospect has before further approvals are required?
Who are the decision-makers, evaluators, influencers, and end users of your potential solution?
Final Decision Maker(s) signs the check.
Motivation: What is the effect on our bottom line?
Evaluator(s) screens out and says no.
Motivation: What is the best solution that meets our needs?
Guide(s) want to help guide you through the process.
Motivation: I like your solution. How can I help you get your solution as the one chosen?
End User(s) are concerned about the effect on them and their job.
Motivation: Will it make my job easier or harder?
Initiator(s) want to look good.
Motivation: How can I show that I did a good job of gathering information?
Purchasing/Legal/Contracts are responsible for negotiating the terms and conditions.
Motivation: How can we get the most favorable terms and conditions for our company (i.e. additional discounts, extra technical support or consulting services, lower pricing, more training or extra sets of documentation, better payment terms, guarantees, etc.)?
Organizational Chart
What is the formal and informal organizational structure?
Who reports to whom?
Who influences whom?
Who are the counterparts, back-ups, peers and subordinates?
Who are the assistants?
Do you have all names and titles spelled correctly?
Do you have the correct street address (room, floor, suite, mail code, etc.),
e-mail addresses, fax numbers and extensions?
What are the responsibilities of each of your contacts?
Products and services
What types of products and services are currently in use?
Does the prospect have the necessary people, time, money and equipment in place or available to implement your solution?
Could the correct environment to support your solution be put in place?
Competition
What other companies are also being considered and why?
Who is favoring the other company's solution and why?
What is it Mrs. Prospect likes or dislikes about their current supplier?
If Mr. Prospect had a wish list and could have or change anything he wanted with their current or a potential supplier, what would be on the list?
Locations
Are decisions centralized (one location makes the decision for all locations) or decentralized (each location decides for themselves)?
How many locations, subsidiaries, partners, alliances and/or joint ventures are there and do we do business with any of them?
Is it possible to sell your solution on an enterprise wide basis rather than a departmental or business unit basis?
Do any other locations have an existing relationship with your company, partners or affiliates?
Confidence
Does Mr. Prospect trust you?
Have you established credibility?
Does Mrs. Prospect know the company you represent?
Does Mr. Prospect believe you sincerely have their best interests at heart?
Does Mrs. Prospect have confidence in your company's ability to provide them with and support your solution that works?
Resources
Does Mr. Prospect have the time and staff necessary to conduct an evaluation?
Does Mrs. Prospect have the time and staff necessary to prepare a cost justification?
Does Mr. Prospect have a budget available or access to discretionary funds?
Does Mrs. Prospect have the right physical environment for your solution?
What are the bare minimum requirements for your product or service to work?
Next Steps
After summarizing your conversation, follow up with a next step question such as:
"What's next?" or "What's the next step?"
"Where do we go from here?"
"If we had a solution that would help you do a better job than your current solution what is the process you go through to look at new solutions?"
"What do we need to do to move forward on this?"
What actions need to be taken by you and the prospect to get them to evaluate your solution?
Have you set up a Sales M.A.P. (Mutually Agreed upon Process(tm))?
What day and time do these actions need to be completed by?
What is the time-line or what are the milestones for moving the sale to its completion?
Next steps need to be time and date specific. "I'll call you back next month" is not the same as "We'll speak next Tuesday at 3 p.m. Eastern Time to discuss the merits of the proposal after you have had the opportunity to review it with your peers, correct?"
Examples of Next Steps
Do you have permission to send literature, an email or a fax while also setting a specific date and time to call to be sure the information is received and to answer questions or discuss the materials?
Is Mrs. Prospect willing to accept your proposal or do they want a demonstration or presentation?
Is a call required to answer or clarify any complex issues?
Are you in the habit of following a phone call with a fax or an email?
Do you follow a fax with a phone call or an email?
What about following an email with a phone call or a fax?
Conclusion
If you or your sales force has not defined the characteristics of a most profitable prospect, it is time to do so. Consistency of definitions and the use of a well-defined sales system result in qualified prospects that are well qualified and ready to buy what you are selling.
WHAT MAKES A QUALIFIED PROSPECT QUALIFIED - To learn more about this author, visit Ron La Vine's Website.
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