PRE-QUALIFYING PROSPECTS AT SALES TOUCHPOINTS
By Gary Jensen
Have you ever spent time pitching your product or service to someone only to find out that they can't afford what you're selling, or that there is no urgent need to buy, or that you aren't talking to the decision maker? Have you ever closed a deal, only to conclude later that the sale actually cost you money? If you answered, "Yes," then I've got one hyphenated word for you: "pre-qualification."
At a minimum, running a credit report is a fast, easy, and inexpensive way to pre-qualify prospects (For more on credit reporting visit www.MicroBilt.com). For less than the price of a cup of coffee, running a credit report not only helps to strengthen your bottom-line by preventing you from wasting valuable time, but it also boosts the confidence level of those involved in the sales process as it becomes easier to close deals.
PRE-QUALIFICATION TOUCHPOINTS
Spend more time with your ideal prospects by weeding out the time consuming, bottom-line drainers that zap your resources by using a pre-qualification process at each sales touchpoint.
In Person
Use the schmoozing period strategically by developing a series of no more than five or six questions. Just gathering some basic information right up front allows you to run a credit report and know, within minutes, a prospect's buying motive, sense of urgency, knowledge level, purchasing ability, and decision making authority.
Over the Phone
Those same questions can be used over the phone to gather information to run a credit report and help you better prepare for face to face meetings by identifying buying signals and potential problems ahead of time. For example, if the prospect has no sense of urgency, you could consider offering a limited time discount.
On the Web
The Internet provides tremendous potential, yet many companies fail to unleash the full power of their website. An online pre-qualification questionnaire can give you enough information to run a credit report, qualify leads, and gather information in advance of any meeting or phone call. For example, a website development company may have an online survey which asks the prospect to specify the features that they are looking for, the budget they have to work with, and the target date for having the new site up and running. This saves valuable time, because when it is time for personal conversation with the prospect, the sales representative would know exactly where the conversation needs to head without spending valuable time figuring out what the prospect can afford.
And, depending on your business model, it may be possible to process and complete an entire transaction without ever spending time with the customer. Prospects can enter their data, trigger their own credit report, and get pre-qualified all at once. But remember, automatic underwriting can lead to higher rates of delinquency and default due to nonpayment.
By Word of Mouth
Let your existing clients and other contacts know the qualities you look for in a prospect. Word of mouth is still a very real part of doing business and warm leads are generally easier to close.
TOUCHPOINT - In Person
PROS - Allows for more intelligent conversation. - Quickly pinpoint problem areas.
CONS - Customer service may be sacrificed. - Pre-judging instead of pre-qualifying.
TOUCHPOINT - Over the Phone
PROS - Can be delegated to an assistant. Alternative strategies to overcome areas of concern can be identified in advance of a face-to-face so time in the meeting can be spent working to clear the hurdles. No stereotyping based on appearance.
CONS - Some people are uneasy answering questions over the phone. A bad phone experience can prevent the prospect from showing up.
TOUCHPOINT - On the Web
PROS - Saves, if not eliminates, time spent with staff. No pre-judging. Ability to quickly process entire transaction online. 24/7 selling hours.
CONS - Reduced ability to respond to problem areas. Loss of the "human touch." Can be expensive to implement and maintain.
TOUCHPOINT - By Word of Mouth
PROS - Clients and prospects save you money by marketing for you. Referrals are often easier to close.
CONS - A bad experience with a referral can damage the relationship with your existing client. Clients may not do a good enough job of pre-screening prospects.
THE REAL BOTTOM LINE
Is a pre-qualification strategy right for you? That depends a great deal on the overall philosophy, goals, and abilities of your business. There is certainly a cost for pre-qualifying customers, and while it may be difficult to process the thought of turning away business during tough times, the goal is to use pre-qualification to widen the profit margin, not reduce it.
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