Definition: The search for potential customers or buyers
When it comes to drumming up new business, like anyone involved
in sales, your first big challenge will be to reach the right
individuals. To successfully find new prospects for your products
and services, you'll need a hard-working prospecting program that
reaches out to qualified prospects and moves them through the sales
cycle from cold to warm to hot. Your program must incorporate a
range of marketing tactics that, over time, bring prospects
incrementally closer to a decision to hire you.
Cold prospects are customers or organizations you've
identified as well-qualified but that have little or no awareness
of your company. They can be reached through advertising, public
relations, cold calling and networking. Begin a campaign of
magazine advertising to showcase your unique selling proposition,
and set up an ongoing public relations program that targets the
same publications. Also create a prospect list of qualified
individuals or organizations, and support your marketing efforts
with cold calling. To round out your efforts to reach cold
prospects, begin networking within select groups where you're most
likely to come into contact with members of your target
audience.
Once you've begun calling on top prospects and leads from your
advertising and PR programs start to roll in, you'll need to set up
a database using contact management software. This will help you
consistently maintain ongoing contact with warm
prospects-companies and individuals with whom you've previously
spoken or met. Initiate a direct-mail campaign to make frequent
contact with your database. And support the campaign with sales
activities, including follow-up phone calls as well as meetings
with prospects generated by your direct mail, advertising and
public relations.
Hot prospects are the ones you've successfully moved
through the first two stages of your sales cycle. When your
marketing program has brought them to this point, you'll need to
get personally involved to supply the "heat" to close sales.