{"id":45377,"date":"2021-08-11T06:02:00","date_gmt":"2021-08-11T10:02:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=45377"},"modified":"2021-08-20T10:46:47","modified_gmt":"2021-08-20T14:46:47","slug":"customer-prospecting","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/customer-prospecting\/","title":{"rendered":"Customer Prospecting: Who Should You Target?"},"content":{"rendered":"\n<p>What is <a href=\"https:\/\/www.shortform.com\/blog\/prospecting-customers\/\">customer prospecting<\/a>? How do businesses prospect for new customers? What are some things you can do to identify and target prospects that will guarantee sales? <\/p>\n\n\n\n<p>Customer prospecting is the first stage of the sales process. It involves defining, identifying, and initiating contact with prospects\u2014customers who are most likely to buy your products\/services. <\/p>\n\n\n\n<p>In this article, we&#8217;ve put together some <a href=\"https:\/\/www.shortform.com\/blog\/sales-prospecting-tips\/\">prospecting tips<\/a> to help you find and engage with the right prospects.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">1. <strong>Create a Target List<\/strong><\/h2>\n\n\n\n<p>When choosing your targets, <strong>look for potential new customers with a profile similar to that of your best current customers<\/strong>. Ask:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Who are the company\u2019s best customers?<\/li><li>What do they have in common?<\/li><li>What do these companies and their markets look like?<\/li><li>Where or how can we find potential customers who resemble our best customers?<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Target List Parameters&nbsp;<\/strong><\/h4>\n\n\n\n<p>In addition to being strategic, a target list should be:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Fixed:<\/strong> Zero in on a fixed or limited number of targets that you\u2019ve chosen because they mirror your best customers. Then work the list and keep working it. Don\u2019t give up and move on if you don\u2019t succeed on your first try with a prospect. Most importantly, stick to your prospect list and don&#8217;t start pursuing other, non-strategic targets, which won\u2019t be productive.<\/li><li><strong>Focused<\/strong>: Focus intensely on the category of customers that\u2019s produced sales for you in the past. By doing so, you\u2019ll become conversant in the industry\u2019s or sector\u2019s language, opportunities, and challenges. This, in turn, will help you ask smart questions that <a href=\"https:\/\/www.shortform.com\/blog\/credible-communication\/\">build credibility<\/a> with prospects. With each success, the next will be easier to achieve.&nbsp;<\/li><li><strong>Written: <\/strong>Have a written, one-page target list literally at your fingertips to keep you focused on your mission. It\u2019s faster and easier to pull out a paper list or spreadsheet than to boot up and scroll through digital pages of a CRM (customer relationship management) system, or to page through an industry directory. Even the act of writing, printing out, and posting a new-business target list on your wall inspires action and ultimately results.<\/li><li><strong>Feasible: <\/strong>Keep your prospect list short enough that you can give each account enough attention, and long enough to be challenging so you don\u2019t get bored and waste time on other things. Determining the right number of accounts to include depends on the type of business, how easy it\u2019ll be to gain access to each customer, the sales rep\u2019s other responsibilities, and so on. For instance, if you\u2019re selling complex enterprise-level IT software, you\u2019ll need to keep your account list small, perhaps a few dozen accounts, so that managing it will be feasible. However, a telesales rep could handle many more, perhaps hundreds, of accounts for a simple product or service.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Include a Few \u2018Dream\u2019 Prospects<\/strong><\/h4>\n\n\n\n<p>Your prospect list should include a few \u201cdream\u201d customers\u2014accounts that would be a huge coup for you and your company. Pick only a handful and develop a plan for tackling each target; do something each week to advance your plan. Meanwhile, keep working hard to pursue the other more conventional targets on your list. You still need to make your sales goals even if the dream client doesn\u2019t come through.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. <strong>Target Higher-Ups<\/strong><\/h2>\n\n\n\n<p>Besides determining which businesses to target, think about whom you should be targeting <em>within<\/em> those businesses. They should be higher-level people.<\/p>\n\n\n\n<p>Getting access to senior leaders is easier than you think and it increases your chances of <a href=\"https:\/\/www.shortform.com\/blog\/sales-success\/\">sales success<\/a>. The key to getting their attention is connecting with them on issues that are top of mind rather than delving into the details of your products, services, and processes. You have nothing to lose by <a href=\"https:\/\/www.shortform.com\/blog\/stretch-yourself\/\">aiming high<\/a>. If you\u2019re denied a meeting, then pursue a mid-level executive. This is a better strategy than starting lower and then going over someone\u2019s head when they turn you down\u2014because this creates enemies in a company whose business you want.<\/p>\n\n\n\n<p>It\u2019s also a win if the executive takes an interest in your pitch and directs you to someone else with the specific knowledge to evaluate your proposal. An internal referral from a senior leader will be paid attention to.<\/p>\n\n\n\n<p>In addition, executives are often easier to work with than with middle managers or purchasing agents\u2014they\u2019re friendlier, more professional, and are big-picture thinkers. While middle managers focus on saving every possible dime, senior leaders are more interested in solving <a href=\"https:\/\/www.shortform.com\/blog\/common-business-problems\/\">business problems<\/a> and achieving results.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Resources for Finding Prospects<\/strong><\/h3>\n\n\n\n<p>Once you know what kind of sales prospects you\u2019re targeting, there are many resources for coming up with specific names. Local business journals compile and publish annual lists of businesses in the region by size, business sector, and so on. Another resource is Hoover\u2019s, an online source for business data. With a subscription, sales teams can research targets or potential targets.<\/p>\n\n\n\n<p>Other tools include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>LinkedIn: Its websites and mobile apps facilitate research, information sharing, networking, and initiating relationships.<\/li><li>Trade shows and industry associations: They\u2019re old school but still useful for identifying target accounts because they often gather all the major players in an industry in one place. In addition, they provide annual directories.<\/li><li>Social media: These sites can be useful supplements to connecting with prospects face-to-face\u2014for example, writing a blog can <a href=\"https:\/\/www.shortform.com\/blog\/create-interest\/\">create interest<\/a> in your product.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. <strong>Develop Referral Sources<\/strong><\/h2>\n\n\n\n<p>In addition to your prospect list for new sales, you should also develop a target list of potential referral sources\u2014people who might provide you with names of prospects.<\/p>\n\n\n\n<p>By referral sources, Weinberg doesn\u2019t mean clients who refer new customers to you, or members of your professional network who pass your name to potential clients.<strong> Referral sources are people in a position to provide you with an ongoing stream of referrals<\/strong>\u2014for example, real estate agents are often referral sources for bank loan officers (the agents provide names of potential mortgage clients). Similarly, in a large banking system, loan officers at smaller branches are referral sources for premier bankers seeking wealthy customers.<\/p>\n\n\n\n<p>Once you have a list of target referral sources, develop a plan for approaching them almost as though they were sales targets. Track the results you get from referral sources and focus your energy and attention on the ones that generate the best opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">4. <strong>Segment Existing Accounts<\/strong><\/h2>\n\n\n\n<p>The strategic thinking process for creating prospect lists can also be used to prioritize existing customer accounts, so you\u2019re spending the most time on the accounts that deliver the most.&nbsp;<\/p>\n\n\n\n<p>Both inside and outside reps could increase sales among existing customers by \u201csegmenting\u201d or categorizing the customers, then devoting the most time to the ones likely to produce the best results. (Shortform note: O<em>utside<\/em> reps make <a href=\"https:\/\/www.shortform.com\/blog\/face-to-face-sales\/\">face-to-face sales<\/a> visits, while <em>inside<\/em> reps make phone calls in the office using system-generated customer lists.)<\/p>\n\n\n\n<p>A simple way to segment existing customers is to use these four groups:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Largest accounts by dollars spent<\/li><li>Accounts with the most growth potential (likely to produce incremental revenue)&nbsp;<\/li><li>At-risk accounts (there\u2019s a high probability of losing some or all of their business)<\/li><li>Miscellaneous accounts (those that don\u2019t fit one of the other categories)<\/li><\/ol>\n\n\n\n<p>You\u2019ll want to spend the most time on the accounts in the first three segments and the least on the miscellaneous accounts<strong>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is customer prospecting? How do businesses prospect for new customers? What are some things you can do to identify and target prospects that will guarantee sales? Customer prospecting is the first stage of the sales process. It involves defining, identifying, and initiating contact with prospects\u2014customers who are most likely to buy your products\/services. In this article, we&#8217;ve put together some prospecting tips to help you find and engage with the right prospects.<\/p>\n","protected":false},"author":7,"featured_media":10100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,103],"tags":[456],"class_list":["post-45377","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-sales","tag-new-sales-simplified","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Customer Prospecting: Who Should You Target? - Shortform Books<\/title>\n<meta name=\"description\" content=\"Customer prospecting involves defining, identifying, and engaging with prospects\u2014customers who are most likely to buy your products\/services.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Prospecting: Who Should You Target?\" \/>\n<meta property=\"og:description\" content=\"Customer prospecting involves defining, identifying, and engaging with prospects\u2014customers who are most likely to buy your products\/services.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-11T10:02:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-20T14:46:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/06\/understanding-customer-needs-spin-selling-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1708\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Darya Sinusoid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Darya Sinusoid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\"},\"author\":{\"name\":\"Darya Sinusoid\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/0421cce75bc249b11e2517b3a91f9c46\"},\"headline\":\"Customer Prospecting: Who Should You Target?\",\"datePublished\":\"2021-08-11T10:02:00+00:00\",\"dateModified\":\"2021-08-20T14:46:47+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\"},\"wordCount\":1229,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/06\/understanding-customer-needs-spin-selling-scaled.jpg\",\"keywords\":[\"New Sales Simplified\"],\"articleSection\":[\"Business\",\"Sales\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/customer-prospecting\/\",\"name\":\"Customer Prospecting: Who Should You Target? 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