Why Is Sales Prospecting Necessary?
Listing promising companies as sales targets leads to further efficiency in sales activities. Specifically, there are three main benefits.
Efficient Sales Activities
By gathering detailed information on promising companies, managing it centrally with IT tools, and sharing it across the entire sales department, each sales representative can search and view this data, making it easier to determine which companies to approach, when, and how.
Naturally, the more accurate and fresh the information on the listed companies, the higher the sales efficiency. By establishing such a prospecting environment, you can maintain a state where problems like "not knowing where to sell" or "not being able to think of an approach method" are less likely to occur.
Useful for Upselling and Cross-selling
Prospecting for sales lists is also useful for upselling and cross-selling. Both methods aim to increase the average customer transaction value.
In upselling, you propose higher-tier products to customers considering a purchase or those already under contract. In cross-selling, you recommend other products alongside a specific product. Products recommended via cross-selling are generally those that are convenient to use in combination with the product the customer is currently considering, or other products the customer is interested in.
By clearly noting the purchase history and assumed needs of promising customers on the sales list, you can easily implement upselling and cross-selling tailored to each company's situation. If you can consistently perform upselling and cross-selling that provide value to the customer, you can expect an increase in repeat business.
Leads to Improved Customer Satisfaction
It is important to keep customer needs updated and detailed in your sales list. This allows you to propose the products and services customers want at the right time, leading not only to direct sales growth but also to improved customer satisfaction.
Furthermore, by sharing listed customer information centrally across the sales department, you create an environment where everyone can efficiently collect sales information. This allows for more attentive sales approaches to each customer with more time to spare. Naturally, it also prevents troubles such as duplicate approaches to the same company. Overall, these benefits lead to higher customer satisfaction.
Steps for Sales Prospecting
Here, we explain the basic steps for prospecting, divided into four parts.
Step 1 is data analysis. Analyze existing customer information in detail to understand the current situation: what kind of customers use your products or services, and in what situations.
Step 2 is segmenting the customer list. Create groups based on attributes such as industry or location, and categorize customers into these groups. Then, analyze how much of each product is purchased or used in each group. This allows you to predict common needs and the future attractiveness of each group as a market.
Step 3 is target setting. Based on Step 2, pick out the groups suitable as your main targets from the segmented customer groups, such as groups with high purchase rates or high purchase prices.
Step 4 is customer scoring. Assign scores based on attributes or behaviors for each customer company or individual. For example, set scores such as "Company size of 1,000+ employees: +20" or "Spontaneous inquiry: +10."
Calculate the total score for each customer within the target group, and list those whose total exceeds a certain threshold as "promising customers."
Points for Achieving Results in Sales Prospecting
Furthermore, to practice prospecting that leads to steady results and to gain those effects in actual sales, please keep the following three points in mind.
Formulate Hypotheses on Whether Needs Exist
When prospecting, it is important to formulate hypotheses regarding customer needs and budget settings.
For example, suppose your company provides a service for basic training for new graduates. In this case, investigate whether the client company is hiring new graduates. You can check the company's official website for new graduate job postings or search for the company on job sites for new graduates. If the listed company is hiring new graduates, you can anticipate that they have the needs and budget for your service.
Continue Expanding the List
Do not stop after just one round of prospecting. Increase the number of customers on your sales list daily. Search for companies that have contact with your company or those whose needs match your products. For example, by analyzing your website traffic, you can identify companies that have visited your site and add them to your sales list to expand it.
Continue Updating and Managing the List
Continuing to update and manage the list is also an important point. In addition to segmentation and scoring, keep dynamic information updated to maintain a sufficient volume of data.
For example, when you approach a sales target, record the results in that company's entry to track the current relationship and whether they are currently seeking your products. This leads to smoother improvements in the timing and method of future approaches, enhancing the quality of your sales.
