WHAT CONSULTANTS NEED TO KNOW ABOUT PROSPECTING AND MARKETING

Transcription

1 RESOURCE ASSOCIATE S COR PORATION THE FUTURE BELONGS TO US WHAT CONSULTANTS NEED TO KNOW ABOUT PROSPECTING AND MARKETING It s not what you know, it s who you know. It s not who you know, it s who knows you. Unknown Effective prospecting and marketing are the cornerstones of the Buying/Selling Process. Proficiency in the Buying/Selling Process is a useless set of skills unless you have solid bases of potential customers who can be found through a viable prospecting and marketing plan. Prospecting is the search for potential customers. Marketing, as defined by the American Marketing Association, can be defined as the activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers.

2 PROSPECTING Prospecting is the process which defines and identifies potential customers and organizations that can buy your consulting services specifically, therefore creating your desired targeted markets. The ability to find new customers and the ability to develop more business from existing customers are perhaps two of the most sought after skills in consulting. Frequently, finding names is fairly easy, and in some cases represents the most common approach to prospecting. However, in today s competitive environment with more and more competition vying for the same customers, being able to target the most likely prospects for your consulting service is critical to success. A target market is the best universe of potential customers for your consulting service. Sometimes the parameters for a target market are very broad, and sometimes they can be very narrow. Target markets can differ from industry to industry and even within industries. It is important to define the parameters of your ideal prospects because it will help you focus on those companies and people with whom you have the highest probability of success. You can determine your target market by analyzing who is most likely to become a customer. Begin by examining your consulting service and by doing a competitive analysis. Consider your competitive advantage and determine who is most likely to benefit from doing business with you. After you have determined your target market, you will want to start listing specific names of potential customers. (There are several contact management tools in the marketplace

3 N orth A merican I ndustry C lassification S ystem CONTACT US ON LINKEDIN CLICK HERE CONTACT US ON FACEBOOK CLICK HERE that can help you effectively organize, store, and manage your target lists.) Specific names can be sourced through a number of resources such as the library, the Internet, or by purchasing directories from industry specific organizations. There are directories specific to particular industries such as: banking, distribution, or manufacturing (and many others), and there are more general lists that can be sorted by company size, NAICS code (North American Industry Classification System), through organizations like Dun & Bradstreet, Standard & Poor s, and Hoover s as well as other list resellers. Associations also publish membership directories. You could also create your own customized list by joining social media groups like LinkedIn and Facebook, following certain industry related blogs, watching for articles about organizations in your marketing area, meeting people at networking events, and developing referral partners. As was said earlier, a target market is the best group of people who are likely to become your customer. Even within your target market there are people who are more likely to buy from you than others. Developing the ability to identify the best segment of people can give you a tremendous advantage. One very effective method of segmentation is to classify those who have a high probability of becoming customers as prospects and list all others as suspects. This slight but additional differentiation can help you to manage your time more effectively and improve your results.

4 SUSPECTS VS. PROSPECTS Suspect are members of your target market. They become suspects when you have reason to believe they have a need or interest for your consulting service. Like we mentioned, you probably obtained their name from a social media group, a list or directory, or perhaps you read an article about the organization. A current customer may have told you about an individual who has a problem and there is a possibility your consulting service is a potential solution. A suspect can be almost anyone. A suspect is only a possible prospect. The advantage to suspecting is it is possibility focused. The principle is you identify any and all possibilities before measuring their potential by comparing them with your prospect criteria. When suspecting, think about all of the possibilities and create a list. After you have created your suspect list and started your marketing activities, you will want to focus on those suspects who are most likely to become customers. These prospective customers are called prospects. Knowing where to find people who are most likely to buy from you helps you to determine where you should focus your marketing activities. A prospect is someone who: Understands your offering and is interested in moving forward in the Buying/Selling Process. Has or can access the finances necessary to do business with you. Has the authority to buy or can influence the buying decision.

5 Typically, a suspect does not become a prospect until an initial interaction or first meeting has occurred. During your initial conversation you will ask questions, begin the relationship building process, and start determining needs and wants. Those who have clear and immediate needs will become your best prospects. Those who don t have a need for your product or service, or whose need is in the distant future remain on your suspect list until you are able to discover a need that will move them to action. Knowing the difference helps you to know where to focus your energies.

6 YOUR SALES FUNNEL An excellent technique for tracking progress with your prospects is The Sales Funnel. The concept is a simple one: If you want a steady stream of business flowing from the funnel, you must continually put new prospects into the funnel. It s important to remember that prospects should enter the funnel, not suspects. You can then manage your funnel through the SWARM technique. S uspects Warming A ligning R ealizing M atched Suspects: Your suspects (target market) are outside the funnel. Your goal is to turn suspects into prospects, so that you can place them in the funnel. Warming: The first stage of your funnel contains prospects in the warming phase. Warming means you have met with the prospect and there is an interest in advancing the Buying/Selling Process. You have reason to believe you will do business with this prospect, but you are not far enough along to be sure. Aligning: Next is the aligning stage. You are now advancing through the Buying/Selling Process and the prospect is beginning to align himself or herself with you, your company, and your service. You are starting to witness behavior, responses and activity on the part of your prospect indicating his or her desire to move forward with your service. You now feel that your odds of doing business with this prospect are greater than 50%.

7 Realizing: In the realizing stage, the prospect comes to realize that you, your company, and your consulting service is the right choice. In this stage, there may be some negotiation, checking of references, and discussion of final details. You feel 75% certain you will do business with this prospect. Matched: You have won the business. Congratulations! You have successfully matched your consulting service to the wants and needs of your prospect. Even though this technique has an intuitive aspect, as you become adept at classifying prospects at various stages of the funnel, you can track how many prospects you need at each stage to reach your goals. S SUSPECT W PROSPECT A >50% R >75% M NEW CLIENT

8 MARKETING After you have identified your target markets, now it is time to create and implement a marketing plan. What activities will put you in places of opportunities to meet the decision makers identified by your target markets? The outcome of your effective marketing efforts is to generate the first interaction or meeting of the Buying/Selling Process officially turning your suspect into a prospect. Marketing is the activity that, if done consistently well, will allow you to keep putting new prospects into your sales funnel. Different industries will require different marketing activities. Some marketing activities that may make sense to review include: Networking I-Marketing Use of Social Media Developing Referrals Cold Calling Education Based Marketing NETWORKING Networking functions are designed to create an opportunity to meet people who may otherwise be inaccessible. A networking function is an opportunity to meet several people in a relatively short time frame. This is frequently a very productive use of your time. When you are networking, your goal is for people to know who you are and what you do. It is not to sell. You want to gather information, circulate, ask questions, greet people, be approachable, and be an approacher. Just knowing who you are will make it easier to get an R E SOU RCE AS SOCIATES COR PORATION

9 appointment or have a phone conversation at some later date. Be sure to have lots of business cards. If you attend with others from your organization, split up so your efforts are multiplied. If you find yourself caught in a conversation of no value to you, politely move on. Target people you would like to meet ahead of time and ask to be introduced to them by someone you know or meet. Get to know the function organizer and ask to be introduced around. And remember: It s network not net-sit. When participating in networking functions for business related purposes, set goals for each function. To help you determine your goals, ask yourself: How many people do I want to meet at this function? How many appointments (if appropriate) do I want to set? Who specifically do I want to meet? Who knows me well enough to introduce me to others? I-MARKETING (Web-Based or Internet Marketing) Internet marketing also known as web marketing, online marketing, web advertising, or e-marketing is referred to as the marketing of products or services over the Internet. Internet marketing ties together the creative and technical R E SOU RCE AS SOCIATES COR PORATION

10 aspects of the Internet, including web design, development, advertising, and sales. I-Marketing also includes the placement of media along many different stages of the customer s engagement cycle through search engine marketing (SEM) and search engine optimization (SEO) as well as the use of banner ads; however, you want to be sure you re working with an organization that has expertise with this area. MARKETING VIA SOCIAL MEDIA Social media offers the ability to reach out to people who are already talking. Imagine how your leads could grow if you placed your consulting service in front of people who are already looking for it and are in the mindset to buy. Social media can provide that opportunity for the right industry and business. Searching for conversations on Twitter that are pertinent to your field is fairly easy because the majority of Twitter s content is public. It is made easier by using the Advanced Search feature. LinkedIn is a good choice for a consulting business. One of LinkedIn s features is the Answers section, which is a way for professionals and business experts to give and receive business advice. Using the Advanced Answers Search feature you can find questions that contain keywords related to your services. Answering these questions will give you the opportunity to share your expertise and knowledge, as well as information about your consulting services. LinkedIn, Facebook, and other social media sites allow organizations to create corporate pages as well as the ability to place advertising to focused groups that may have interest in your services. R E SOU RCE AS SOCIATES COR PORATION

11 DEVELOPING REFERRALS We have a proven referral system, to learn more CONTACT US Referrals are people whose names are given to you by someone else. Referral sources are people who will let you use their name when you contact a prospect with the goal that using their name will make it easier for you to schedule a meeting. A referral source could be an employee of a target company, your next-door neighbor, a prospect, a suspect, a relative, or anyone else who happens to know of someone who may be in need of or have interest in your consulting service. It is also likely there will be an initial level of comfort because some credibility is pre-established. Generally, trust is built more quickly with leads from referral sources. In a recent Survey, 91.6 % of our Affiliates reported that their business is generated by repeat sales and referrals. The first key to getting referrals is simple: ASK. When you ask, make it easy for your referral partner to respond by phrasing your question so the easiest answer is a name. Beyond asking, education is an important element of building referral partners. Your referral partners should know what to say to suspects about you. It is also helpful if they know what a suspect might say that would indicate a need for your service. Another type of a referral partner is a strategic alliance. A strategic alliance is a relationship where your service complements the product or service of someone else and vice versa. For example, as a consultant it might make sense for you to identify an information technology specialist you could bring in if the need existed. This IT specialist could also bring you in, given the right situation. As you consider your consulting service, think about the opportunities that exist for strategic alliances. R E SOU RCE AS SOCIATES COR PORATION

12 The final key component of developing referral sources is attitude. Confidence and belief in what you do are essential if you expect others to support you and refer you. You must be sold on yourself, your company, and your consulting service, and you must consistently project that confidence to others! COLD CALLING The telephone can be an extremely profitable asset in many businesses. If cold calling is appropriate in your business it can save time, enhance productivity, and generate sales faster. The first thing to remember is that working via the phone can be either highly enjoyable or a painful chore depending upon your attitude toward it. It will be your first contact with your prospects and your attitude will jump through the telephone lines much faster than your words. To help keep you focused consider using a telephone script. Scripts give you the advantage of knowing what you are going to say so you can focus on the relationship your beginning to build with your prospect. The time you have to generate initial interest is short. You have somewhere between 15 and 45 seconds to form an impression during which time you need to introduce yourself, share why you are calling, and ask for the appointment. While the precise time may vary based upon the receptivity of the suspect, the first impression is formed in a very short time. You want to describe what you do in 20 seconds or less. These 20 seconds must capture your uniqueness and your passion. Then if more information is desired, your suspect will begin to ask questions and engage you in a

13 very short time. You want to describe what you do in 20 seconds or less. These 20 seconds must capture your uniqueness and your passion. Then if more information is desired, your suspect will begin to ask questions and engage you in a conversation. Many people find it helpful to develop a script that will help them stay on point and make maximum use of this time. Your script should reflect your personality and style and give your suspect a general idea of what you have to offer without getting into details, which should only be discussed during your first interaction or face-to-face meeting. Here is an example of an effective telephone script structure: 1. Introduction 2. Permission to Continue 3. Purpose of Your Call 4. Brief Explanation of Why You Want an Appointment 5. Request for an Appointment 6. Confirmation There are times when you will contact a person at just the right time. There seems to be interest. Rapport is established early, and the suspect does not seem rushed. When this occurs, you can use some additional time to ask one or two needs discovery questions. Ask only questions that will help you prepare better for the appointment or questions to which the answers are not readily available anywhere else. It is vital to have a good grasp on the benefits of your consulting service and the outcomes a customer enjoys by working with you, your company, and your service. Make a list and have it with you when you make phone calls.

14 SUBSCRIBE TO OUR BLOG CLICK HERE EDUCATION BASED MARKETING One of the most important functions of your marketing plan should be to establish your knowledge and capability. Education based marketing is a powerful, long-term, marketing strategy that establishes trust and credibility using educational messages instead of the traditional selling based messaging. The educational message is commonly delivered to prospective customers through a number of mechanisms such as written materials, blogs, articles, interviews, speeches, seminars, newsletters, videos, webinars, web sites, etc. [You re currently reading our white paper, right? ] Most consultants implementing an education based marketing campaign will use many of these approaches or venues simultaneously. What is most important is to put your message where your potential customers can find it. By offering helpful information and advice and by offering reliable information, your company establishes itself as an authority. Education based marketing provides your prospect with what they want and removes what they don t want a sales pitch SWARM

15 CREATING INTEREST An essential skill for developing interest is the ability to tell people what you do and what makes you unique in a way that stimulates them to want to know more. This might best be called your unique proposition. The time you have to generate initial interest is short. You want to describe what you do in 20 seconds or less. These 20 seconds must capture your uniqueness and your passion. Then if more information is desired, your prospect will begin to ask questions and engage you in a conversation. You don t want your unique proposition to come across as a commercial that turns people off or shuts down communications. You do want people to respond favorably. Be proactive in stimulating that kind of response by describing yourself in a way that encourages a question such as, How do you do that? or What types of companies do you work with? For example, a consultant for an engineering firm could say, I m an engineer, which while accurate, may not stimulate any questions. A better response might be, I design bridges and highways for cities and counties. An even better response would be, I work with city managers and county boards to resolve transportation challenges. This last response is the one most likely to encourage a question like: How do you do that? from a listener. It also tells the listener about the type of people with whom you generally work, the focus of your work, and it indicates you are results-oriented.

16 An important advantage in creating an introduction that generates interest is incorporating your competitive advantage. The engineer s competitive advantage is his firm s capabilities for creating designs that effectively incorporate future needs. This lengthens the cycle between update projects, thus making their solutions more cost-effective. By building this into the introduction, the engineer could make it even more powerful. For example, he could say, I work with city managers and county boards to provide long-term solutions for their transportation challenges. Our designs and work focus on preventing re-occurrence and saving money. Your competitive advantage becomes distinctly unique to your organization.

17 SUMMARY Many consultants struggle with marketing and prospecting. One of the major reasons consultants may fail has nothing to do with their knowledge, their skills, or their technical expertise. It has everything to with their inability to effectively market and prospect. Recognize the purpose of prospecting and marketing is to create a steady flow of future business. Focus on your desired end results. Focus your efforts on the activities and results required not the time required. Determine what weekly marketing activities are necessary to generate the number of suspects and prospects you need to create the revenue you want. Successful prospecting and marketing is the beginning of success in sales! "Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Peter Drucker For more information on how to custom design a prospecting and marketing plan for your consulting business or to learn more about RAC s proven Buying/Selling Process call