Determine the number of prospects needed to
meet your monetary goal.
Formula:
Average Value of Customer =
Total monetary value of all clients
÷ Total number of present clients
= X
then take Goal for New Business ÷ X
Determine the number of new prospects to
approach to gain a meeting. From
experience, determine approximately how
many prospects must be seen to produce one
new customer.
By going through this process it brings
efficiency and effectiveness to the sales /
business development effort.
The number of prospects must far exceed the
number of calls and meetings to be made
("hit" ratio of number of prospects to be
contacted to make a sale).
Regardless of the factors the influence the
prospect ratio. You should strive to track the
number of calls made to the number of sales
made (your "betting" average).
Prospecting Review Can you answer the following questions?
If not you lack the necessary focus and goals.
Target market(s)
- Which industries, professions or individuals are you targeting?
- Are any potential markets being avoided?
- What geographical areas are targeted?
Products
- Which products and/or services are you emphasizing?
- Which products and/or services that you are emphasizing low margins or other problems (e.g. servicing)?
Competition
- Are you particularly vulnerable to any competitors?
- Are any competitors vulnerable to your competition?
Strategic Objective
- Is your business or organiation more interested in market share/volume
-or-
profitablilty of its products and/or accounts?
Rating Prospects Rating considerations:
Prospects' eligibility for credit /
non-credit business. Ability to pruchase
Identify decision maker(s)
know needs
Your expertise / knowledge of this
industry
Your knowledge of product / services
utilized in this industry
Third party introduction is available
You / your business's reputation in
the industry
Your competitive standing
Prospects' profitability assessment
Time investment for getting business
(days / months / years)
Needs not currently fulfilled by
customers current "suppliers"
Total monetary value if relationship
were won.
Prospecting Methods Usual Prospecting Methods
Other Prospecting Methods
Determine monetary objective