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About Us
These "Management Files" are mainly for Middle & Senior Management and Business
Owners. The various topics are meant to remind and to stimulate management thought.
Please note: Our firm does not carry-out or furnish research in these areas. This area of our web site is available only
as a public service to foster thought and better management in today's fast-paced environment when the human factor of business is often taken
for granted and/or even overlooked.
We are not a source of facts.
Management Styles
Supervisory Approach
Management - Miscellaneous
Communication-Verbal/Listening
Communication - Non-verbal
Creative Process
Creativity
Staff Motivation
Problem Employees
Personal Crisis -Indicators
Work Related Values &
Work Environment
Meetings
Presentations
Marketing Assessment
Prospecting
Customer Service
Management Files - main mage
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BUSINESS DEVELOPMENT
Prospecting Review | Rating Prospects | Prospecting Methods
Prospecting: Determining Prospecting Ratios
— Prospecting is the first step to expanding the existing client base and/or
developing new relationships with the potential of becoming a client.
Or, identifying and developing referral sources.
— Determine the number of prospects needed to meet your monetary goal.
— Factors to consider in developing a prospect ratio:
- Determine monetary objective for new business.
-OR-
Amount to be achieved over the next months/year -- time period.
- Determine new clients or expanded business from current -
needed to achieve new business objective.
— Formula:
Average Value of Customer = Total monetary value of all clients
÷ Total number of present clients = X
then take Goal for New Business ÷ X
— Determine the number of new prospects to approach to gain a meeting.
From experience, determine approximately how many prospects must be seen
to produce one new customer.
— By going through this process it brings efficiency and effectiveness to the sales /
business development effort.
— The number of prospects must far exceed the number of calls and meetings to be
made - "hit" ratio of number of prospects to be ontacted to make a sale.
— Regardless of the factors the influence the prospect ratio. You should strive to track
the number of calls made to the number of sales made - your "betting" average.
Prospecting Review
— Can you answer the following questions?
If not you lack the necessary focus and goals.
- Target market(s)
- Which industries, professions or individuals are you targeting?
- Are any potential markets being avoided?
- What geographical areas are targeted?
- Products
- Which products and/or services are you emphasizing?
- Which products and/or services that you are emphasizing low
margins or other problems (e.g. servicing)?
- Competition
- Are you particularly vulnerable to any competitors?
- Are any competitors vulnerable to your competition?
- Strategic Objective
- Is your business or organiation more interested in market share / volume
-OR-
profitablilty of its products and/or accounts?
Rating Prospects - Considerations
— Prospects' eligibility for credit / non-credit business.
— Ability to purchase
— Identify decision maker(s)
— Know needs
— Your expertise / knowledge of this industry
— Your knowledge of product / services utilized in this industry
— Third party introduction is available
— You / your business's reputation in the industry
— Your competitive standing
— Prospects' profitability assessment
— Time investment for getting business -- days / months / years
— Needs not currently fulfilled by customers current "suppliers"
— Total monetary value if relationship were won
Prospecting Methods
— Cold Calling and Cold Canvasing
— Warm Calls - lead from someone else
— Appointments
— Active Networking
— Existing Clients
— Internal Prospecting
- Building an internal referral network can be very effective in helping
reach sales targets.
- Call on the staff, in other departments or divisions as if they were
prospects or centers of influence / referrals.
- They may be able, directly or indirectly, to bring new business
opportunities to you.
- Hold information meeting, luncheons, coffee breaks, etc.. with your
internal sources.
- Ask for referrals. Do NOT assume that they know you want referrals or
what the characteristics are for a qualified prospect or opportunity.
— Look for opportunities in news artlcles.
- Local, national and international newspapers
- Local, national and international newspapers
- Trade magazines and newspapers
- National and international periodicals
— Meet with your competition to determine those speciality areas in which you do not
compete. Unbundle services and teaming opportunities.
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For more information Contact Us.
Return to About Us main page.
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Saturday, November 23, 2024
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