Who Do I Sell To?4:35 with Pasan Premaratne
One of the hardest tasks in sales is prospecting and qualifying your leads. Asking the right questions and listening to your clients can help you better understand their needs and make a sale. In this video we’ll look at what prospecting is and the different types of leads.
There are two different strategies for 0:00 coming up with a list of leads, lead generation and prospecting. 0:02 With both prospecting and lead generation you are searching for 0:06 a prospective customer. 0:09 Your differences lie in the approach. 0:11 With lead generation, you're focusing more on customer cultivation and nurturing. 0:13 Whereas with prospecting, 0:19 you're trying to fill up your sales funnel as soon as possible. 0:20 Let's start with lead generation. 0:23 Your goal with lead generation should be to generate awareness about your 0:26 product or service, and to generate qualified leads slowly over time. 0:30 Let's take a step back, though. 0:34 What are leads? 0:36 A lead is a person who has indicated, in some way, interest in your 0:38 company's product or service, most often by providing you with contact information. 0:42 With lead generation, you're primarily going to engage in activities that 0:47 inform the customer, increase brand awareness, and position your offering at 0:51 the top of their minds when they're ready to engage in the sales funnel. 0:56 A lot of the activities we talked about in the marketing section, 1:00 things like inbound marketing, social media engagement, and 1:03 others, are all activities that help you build leads. 1:06 With prospecting on the other hand, 1:10 there is a more urgent need to fill up the sales funnel. 1:12 The end goal is the same. 1:15 Ending up with a list of qualified leads, but the activities are totally different. 1:17 You engage in activities that provide quicker results. 1:22 Things like purchasing mailing lists or 1:25 business directories, attending networking events and conferences, and so on. 1:27 As we mentioned earlier, your objectives are the same. 1:32 With lead generation, you're essentially playing the long game. 1:35 And with prospecting, you want quick results. 1:38 Depending on the situation, you use one or 1:41 both strategies to optimize your sales goals. 1:44 Lead generation works better when, you want to build awareness of your product or 1:47 service among your potential customer base before you reach out to them directly. 1:52 You're not in a rush to build leads and can invest time into 1:58 activities that establish you as a thought leader and increase your brand awareness. 2:00 You want to invest in a strategy that builds a constant flow of leads. 2:06 You want to engage with qualified leads that are warmer. 2:10 Now, a qualified lead is someone who is both indicated that they're interested in 2:13 your product or service and who has the ability to make a purchasing decision. 2:18 On the other hand, prospecting works better when, 2:23 you need to fill up your sales pipeline to hit your quarterly goals. 2:26 You need a more aggressive strategy. 2:30 You want to focus your efforts on small identified niches of customers. 2:33 You aren't concerned with brand awareness prior to engagement. 2:38 And you are comfortable engaging directly with customers and 2:42 convincing them directly on your value proposition. 2:45 It does not matter if you have qualified or warm leads to begin with. 2:48 The strategy you use depends on your business, time frame and goals. 2:53 You can use either strategy, or a combination of both. 2:58 Regardless of the strategy that you use, one of your initial objectives is to 3:02 whittle down your list of leads, to obtain qualified ones. 3:06 What are qualified leads again? 3:10 Now we said that a lead was a person, 3:12 was has indicated in some way, interest in your company's product or service. 3:14 A qualified lead, then, is someone who is not only interested but 3:19 has provided further information that allows us to 3:22 convert them to paying customers much easier. 3:25 Do they have a budget to make a purchase? 3:28 Are they a decision maker in the purchasing process? 3:31 Do they have a need for your product or service? 3:34 And have they specified a time frame during which they can make that purchase? 3:37 Unlike certain industries, 3:42 prospecting doesn't do too well when it comes to web products and services. 3:43 Lead generation, through inbound marketing, generates better results but 3:47 takes more effort. 3:52 So, why bother with qualifying our leads? 3:53 Now on a per-lead basis, basic leads, 3:57 even though they cost less than qualified leads, lead to a very low conversion rate. 4:00 Therefore a greater investment is required on our part to convert these 4:05 leads to customers. 4:09 With qualified leads however, since the conversion rates are much better, 4:11 we have a much better return on investment. 4:14 When you engage with a lead, you need to take them from being a lead, 4:17 to a qualified lead, to a paying customer. 4:21 This isn't a one-step process and 4:24 is what separates the skilled sales people from the pack. 4:26 And that's what we're going to get into next when we 4:29 talk about sales presentations 4:32
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