Why Is Prospecting So Important

Posted by mixed on 7/29/2022 to Marketing Ideas

More Customers

When prospecting works, you attract more potential customers to convert into buyers. This is important, because the typical salesperson loses about 15 to 20 percent of his customer base each year due to gradual attrition. Without prospecting, the entire customer base eventually erodes. More customers increases your buyer pool and allows your salespeople to remain busier working with new and existing customers.

Increased Revenue

More customers also leads to more revenue. Each new prospect that your salespeople find and convert to a customer increases sales production in your business. This is what helps companies grow over time. This growth helps offset risks of increased operations and costs of goods that occurs due to inflation.

Qualification

  1. Qualifying prospects is a part of prospecting. This is the use of basic questions or qualifying criteria to draw out the most profitable potential customers. By finding out the level of need, buying motivation and financial capabilities of prospects, your salespeople can increase their selling efficiency and go after the top prospects willing to buy. Shortening the sales cycle by contacting the highest potential customers also allows your salespeople to make more contacts in a given period.

  2. Data Gathering

    1. Finding prospects does not always lead to immediate sales. In some cases, salespeople use contact with prospects to gather data and conduct market research. Entry Boxes, Direct mail and Social Media, for instance, are tools salespeople can use to find out why customers enter the market to buy certain products, what their primary focus is in shopping and how to best sell. This data can help in contacting specific prospects, but it also aids in developing sales strategies and tactics that can be applied in the long term.

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