Effective inquiry management. Book two in the Global Sources Effective Export Marketing series

Transcription

1 Effective inquiry management Book two in the Global Sources Effective Export Marketing series

2 Introduction To succeed in today s competitive export environment, it is imperative to reach the right buyers, with the right message, at the right time. And, to win buyers orders, you must do this more effectively than your competitors. To help you improve your chances of winning orders from interested buyers, we offer you this guide: Global Sources Effective Inquiry Management. This guide will help you respond more professionally to buyer inquiries and clearly communicate your Unique Selling Points (USP) to buyers so that they choose to buy from you, rather than your competitors. While the focus of this guide is on managing buyer inquiries, the fundamentals of effective communication and marketing principles hold true for other business-tobusiness channels. This is one in a series of Global Sources Effective Export Marketing Guides. These guides help support our mission to create and facilitate global trade between buyers and suppliers. When you work with Global Sources, you can be confident that our professional export marketing services set international quality standards. You are assured that our quality multimedia channels will deliver your company s USP to buyers worldwide and help you realize the best return on your investment. For further information on how we can help you grow your company, please contact your Global Sources Account Executive. Price: US$ Copyright 2005 Trade Media Ltd. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Ltd. and Trade Media Ltd. is prohibited.

3 I have made several inquiries to different companies indicating my desire to purchase their products. Not once has any representative followed up on my ! President, importing company

4 Contents Section 1 The importance of inquiries 1 Section 2 Better inquiry management 6 Step 1. Grading inquiries 7 Step 2. Replying to inquiries 9 Step 3. Managing your inquiries 15 Creating value for buyers and suppliers 20

5 Section 1 The importance of inquiries Buyer inquiries are valuable sales leads. 2 Manage them effectively and you can turn more of these leads into purchase orders... 1 Effective inquiry management

6 The importance of inquiries What is an inquiry? An inquiry is a Request for Information (RFI) from a potential buyer about your products and company. It is a valuable sales lead. The information in the response you send (response to RFI), and responses from your competitors, will help buyers decide whether to buy from you or not. Why inquiries are valuable Marketing and advertising are only the first steps towards increased sales. For your marketing campaign to result in sales, you must respond quickly and professionally to RFIs from buyers. A prompt, professional reply guarantees that buyers will consider your company fairly along with your competitors. Buyers will only consider those firms that have given them the complete information they need to make an intelligent purchasing decision. If you do not reply to RFIs, you have no chance of selling your products to interested buyers. The role of inquiries in the buying process The buying process is long and complicated. It starts well before a decision to place an order is made. Buyers have to compare suppliers, products, and prices. A lot of money is involved and a bad choice can be disastrous for both the company and the person responsible. First, buyers need to gather as much information as possible about potential suppliers and the products they offer. Their RFIs may be for catalogs and other information about companies that offer the products or services the buyer needs. Or, if buyers have already viewed a supplier s catalog online, RFIs may be for product availability or other details. It is important that suppliers give buyers the complete information the buyers require. 2 Effective inquiry management

7 Using the information provided by suppliers, buyers compare companies to see which can best meet their needs. Buying decisions can take a long time, especially if a lot of money is involved. A purchase decision might have to be approved by several people, all busy with various projects. The time to make a purchase decision is likely to increase if: The buying company is big The product is expensive The product is a new line for the buyer The order is large It takes time for buyers to compare suppliers, products and prices. Don t forget: A lot of money is involved, and a bad choice can be disastrous for both the company and the buyer responsible. Buyers do not want to invest thousands of dollars only to find out they could have bought a better quality product for a lower price with faster delivery from another supplier. Therefore, it is to your advantage to reply promptly to the buyer with complete information. How buyers inquire Buyers can inquire direct to suppliers using electronic communication, , phone, fax and post. RFIs sent using these tools are genuine sales leads. However, these tools differ on their cost and the amounts of time before the inquiry reaches you. More and more buyers now rely on electronic communication and sourcing because it saves them vast amounts of time and money. Electronic communication is 3 Effective inquiry management

8 transmitted in seconds at a fraction of the cost of long distance phone and fax. Weeks are saved when catalogs are viewed online, rather than having buyers wait for them to arrive by mail. Electronic communication helps suppliers convert leads to sales faster than ever before. Its cost is also extremely low. Compare it to the cost of sending an RFI by phone, fax or post. Buyers keep their costs down to a minimum throughout the inquiry process. They will therefore contact you using the most efficient, method. In the following sections are three steps to help you manage your inquiries more effectively. 4 Effective inquiry management

9 Why buyers send inquiries to suppliers To look for a replacement/additional supplier for a product currently being purchased To collect information for immediate (within 3 months) purchase of a product not currently being purchased To collect information for future (over 3 months) purchase of a product not currently being purchased To build a reference file for a possible, future new product category 67.0% 54.9% 57.1% 42.9% Manufacture a product/offer OEM services To keep up-to-date with product specifications from other suppliers for a product currently being purchased To consider importing a product currently being purchased locally 27.5% 24.2% 38.5% To keep track of competitive products 17.6% For reference only, with no intention to buy 3.3% Other 5.5% Source: Did You Buy? Inquiry Follow Up Study, Global Sources 5 Effective inquiry management

10 Section 2 Better inquiry management Step 1. Grading inquiries 7 Criteria by which to grade leads vary among companies and industries. What is your company s grading system? Step 2. Replying to inquiries 9 It is important to provide your prospects with the information they require. This will help buyers decide whether to buy from you or not... Step 3. Managing your inquiries 15 To maximize your sales opportunities, be proactive and follow up on all inquiries... 6 Effective inquiry management

11 Step 1. Grade your sales inquiries As soon as you receive an RFI, have your sales manager grade it. Leads should be graded into at least three categories: A Hot leads B Good leads C Future prospects Factors to consider when grading RFIs What are the criteria by which to grade leads? This will vary among companies and industries, and your skill will develop with experience. Here are some things to consider. 1. Urgency of the inquiry: How was the inquiry sent? Telephone Post Fax Electronic inquiry 2. Content of the inquiry: Specific Generic Has the buyer inquired about a particular model? Has he specified color, quantity, price and delivery terms? Incoming can all look the same, but could be from very serious buyers you must read every to discover opportunity. 3. Information about the buyer, such as: Type of business Annual sales volume Country to which he wants you to export Expected size of order When he plans to place an order In many companies, the methods for determining which inquiries require priority sales force or distributor attention are not systematic, accurate, or objective. There are many variables. 7 Effective inquiry management

12 Your company needs clear criteria to grade RFIs. Meet with your marketing and management staff. Clearly define a grading system that is suited to your company. However, keep in mind that one of the most important steps of effective inquiry management is to reply to all RFIs promptly. Urgent inquiries are hot sales leads How the buyer Time to Cost Urgency of inquired reach you request Telephone Immediate Very high Highest Electronic inquiry Seconds Very low Very high Seconds Very low Very high Fax Minutes High Very high Post 7 to 21 days Low Low 8 Effective inquiry management

13 Step 2. Reply to all sales inquiries Reply to all inquiries promptly, even if only to say that you do not wish to sell to the inquirer at this time. When you reply promptly, a buyer will have a favorable impression of you and your company (or at least he won t have a bad impression). Even if he does not buy from you today, he is more likely to consider you for his future needs because you were responsive to his inquiry. If you require time to answer all of a buyer s questions, reply to him immediately, letting him know that you have received his inquiry. Tell him that you will reply to his questions in detail. Give him a specific date by which you will reply in full. If you think your company will not be able to handle additional orders at this stage, reply to the buyer with a thank you note. Remember to always give an explanation so that he will be guided accordingly. If you require more information about the buyer or his company, reply immediately with your questions. Tell him that for you to better reply to his inquiry, it would be very useful if he would provide you with specific details such as: If you do not reply to inquiries, you have no chance of selling your products to interested buyers. 1. Type of business 2. Annual sales volume 3. Country to which he wants you to export 4. Expected size of order 5. When he plans to place an order Today, busy buyers do not have the time to wait around for your reply. Business is more competitive than ever 9 Effective inquiry management

14 before and buyers have more options available to them. As retailers put more pressure on their merchandisers (your customers) to reduce lead time and offer more new products, buyers have a heightened sense of urgency. How the buyer sent the inquiry Level of urgency of inquiry Reply expected Telephone Highest Immediately Electronic Fax Very high Very high High Within 12 hours Within 12 hours Within 24 hours Post Low Within 1 week The following pages tell you how you can benefit from this urgency by being responsive to buyers needs. Communicate by telephone When a buyer telephones your office, write down the caller s name, number, and product interest and add to your database. Remember to log the call. Make sure that the person in charge of handling telephone sales inquiries is trained to professionally respond to a 10 Effective inquiry management

15 buyer s questions. Ensure that they have all of the required information close at hand. Communicate by no longer gives your company a competitive advantage. It s mandatory just like your telephone. If you don t have , you are at a distinct disadvantage. When you receive an inquiry from a buyer by , you should reply to the buyer within the same business day. When a buyer sends , he expects an immediate reply. As an international buyer, he also knows if you are in another time zone, so he realizes it may take a while for you to respond. However, if he does not hear back from you within the day, he will expect to have your reply when he checks his first thing in the morning. Offer even better service and increase your opportunities: check and reply to your twice a day. Communicate by fax If a buyer contacts you by fax, reply promptly. Fax is very expensive, especially when compared to an electronic messaging system and . By faxing his inquiry to you, the buyer is indicating that his request is urgent. So fax back within 24 hours with complete details. 11 Effective inquiry management

16 If you cannot provide the answers immediately, fax to inform him that you have received his inquiry and tell him when you will get back to him. And, as always, do what you promise. Communicate by post If the prospect sends an inquiry to you by post, you should mail detailed product information to him within a week. Materials should be sent by first class mail. Using cheaper mailing rates can be slow, unreliable, and will reflect badly on your company. Even if the request is not for your exact type of products, still reply. As buyers often handle many product lines, they may be interested in your products at a later date. They may also know someone who needs exactly what you offer. Reply to all RFIs with complete information Always include a personalized cover letter. This shows the buyer that you are serious about doing business with him. It helps improve the chances that the right person will see your materials. It also gives the buyer your name, which means a lot more than an impersonal company name. It is important to provide your prospects with enough information to evaluate your products and your company adequately. 12 Effective inquiry management

17 Your response package should include 1. A personalized cover letter which thanks the buyer for his interest, mentions when and how you received his RFI, answers his questions, and introduces your company 2. Complete information on the products or capabilities inquired about either in electronic format or in a printed brochure 3. Pricing information for each item 4. Reference to your website with URL 5. Complete contact information: your address, phone and fax numbers, and address No response or a late response means no sale. 13 Effective inquiry management

18 Information buyers need About your products Complete product specifications Large, clear color pictures Features, functions and benefits Applications Colors, sizes, materials Styles and options Minimum order Shipping and packing details Delivery options Price Payment terms About your company Your workforce QC procedures Latest company news The size of your factory Trading services Equipment Special capabilities Tradeshow participation Agents and representatives Quality and safety standards Code of conduct OEM services Delivery lead time R&D capabilities Management practices Other major customers 14 Effective inquiry management

19 Step 3. Manage your sales inquiries wisely Sales inquiry database management Don t expect that every inquiry will lead to an order. Because you have little way of knowing which initial inquiries will bring results and which ones won t, being too selective is risky. Sending replies, electronic catalogs or brochures does not guarantee that you will receive a flood of orders, but not sending responses guarantees that you will not receive orders. The inquiries you receive from Global Sources form a very valuable database of potential customers: All active buyers. Some companies spend tens of thousands of dollars per year just to acquire lists of potential buyers. You can create your own list of qualified prospects with the RFIs that you receive. Persistence pays Even if you respond effectively to initial inquiries, not every buyer will place an order. This is not a realistic expectation. Also, don t ignore a buyer just because he doesn t buy from you the first time. Think of them as a long-term business opportunity. Often it takes repeated efforts to win an order, but the results can be highly profitable for those who are persistent. Be proactive. Use your valuable database of buyers names to: Follow up with more information at a later date or send electronic messages to selected buyers in your database when you put new products online Refer buyers to your website to view your entire catalog 15 Effective inquiry management

20 Mail offer sheets to buyers who are interested in products similar to yours Show other items you offer to buyers who have purchased your excess stock In your letter to these buyers, mention that you sent information to them previously (give the date) in reply to their RFI about a particular product (be specific). Say that you hope the information was useful to them. Tell them you have enclosed details about your latest product offering, and would like to supply to them now. Also request that buyers provide updated information on what products they are now sourcing. This time, they may be interested in a different part of your product line or a new product that you now offer. If you receive an RFI for products other than exactly what you sell, still respond and offer your products. Many buyers source across product lines. Also consider other advertisers. If they manufacture, they may need your products. Most makers look for new, reliable suppliers of manufacturing supplies and other components. Keep your complete database of potential customers up-todate about your new products and other lines. Reply effectively to all inquiries. You never know what buyers will need to source next. 16 Effective inquiry management

21 It takes repeated efforts to win an order, but the results can be profitable for those who are persistent. Purchasing decisions take time and sourcing is an ongoing process. Buyers action three months after inquiring to supplier advertisement Plan to place an order 65.7% Placed an order Information filed for future consideration 53.1% 53.1% Currently considering whether to buy this product Category information passed along for others to review 25.0% 31.3% Information filed for reference only 12.5% Others 6.3% Source: Did You Buy? Inquiry Follow Up Study, Global Sources 17 Effective inquiry management

22 Other profitable tips Aggressive suppliers reply promptly to inquiries and use them for follow-up marketing. However, not all companies handle inquiries well. Many potential suppliers are not even considered by buyers because they don t handle inquiries effectively. Remember, buyers are too busy to wait around for the information they require to make a purchasing decision. Buyers definitely will not seek out suppliers who don t even bother to reply to their inquiry. To help you convert more leads into sales, make sure your staff: 1. Train to efficiently handle incoming inquiries. Make sure they have polite, professional telephone manners. You never know, the next caller might be a big buyer 2. Check for electronic inquiries and sales inquiries at least twice a day 3. Log all incoming leads and note the source 4. Reply promptly with complete information. A prompt reply tells buyers that you are eager and able to start business 5. Follow up Remember: If you do not have the complete information available, still reply immediately. Tell the buyer when you will provide the information. And, as always, follow up as promised. 18 Effective inquiry management

23 Creating value for buyers and suppliers Global Sources mission is to create and facilitate 20 global trade between buyers and suppliers, by providing the right information, at the right time, in the right format. 19 Effective inquiry management

24 Creating value for buyers and suppliers Since Global Sources was founded in 1971, we have been strong proponents of effective communication between suppliers and buyers worldwide. The objective of this is to create the best business opportunity for trade partners. Today, our commitment and focus remain unchanged, but we employ multiple channels to facilitate communication and business growth. For suppliers, Global Sources: 1. Increases supplier s sales volume (Purchase Orders) and maintain or increase price points 2. Increases supplier s brand and company recognition 3. Keeps suppliers products in front of the right buyer community at all times 4. Provides to suppliers current demand information and new ideas from our large, diverse group of international buyers Global Sources is uniquely positioned to deliver this value to you. Why? Because we have 34 years experience and a growing community of buyers who prefer Global Sources. For buyers, we meet their needs for vertical-specific, multiple-country sources in the media of their choice. For consultation on how we can help you meet your business objectives, please contact your Account Executive. 20 Effective inquiry management

25 Stand out from competition through Professional Export Development Programs Since 2002, Global Sources has launched a series of Professional Export Development Programs with the aim of giving China exporters the information and techniques they need to suceed in today s competitive global market. Senior executive-level short training course Excellence in Export Marketing Exclusive short training courses specifically designed for senior executives of China-based export businesses Objectives: Help attendees develop and implement export marketing strategies applicable to China s business environment to improve their export competitiveness Highlights: Combine classic international marketing theories with China-based exporters practices Meet face-to-face with volume buyers to fully understand their needs One-day export skill training course Managing Inquiry Objectives: Help professionals to effectively manage and respond to buyers inquiries, ensuring greater return on investment Highlights: Combine practical theories with case studies Formalize daily experiences into systematic practices For more information on upcoming export training courses, visit Integrated Marketing & PSCe Objectives: Broaden export marketing professionals and decision makers horizons and help them develop effective export marketing strategies Highlights: Combine world s leading marketing theories with effective e-tools Managing Trade Show Participation Objectives: Help export managers provide services that best meet buyers needs before, during and after the trade show to ensure greater return on investment Highlights: Practical trade show participation techniques compiled from buyers feedback

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