Most people avoid prospecting. Chat with a politician and they explain how they can’t stand asking for campaign contributions.
Someone once explained the marketing plan for many financial advisors in the United Kingdom is: “If they want to do business, they will walk through my door.” Do people actually think the stork who delivers babies also drops off prospects?
Your business likely operates under one of two models. You employ a sales force. Commissions are part of their compensation. They find prospects and turn them into clients. We know this as sales.
Other businesses build brand awareness and operate in a high-traffic location. They expect business will come to them. If they make a product, they want the consumer to walk into a store and ask for it by name. That’s marketing.
Although there’s crossover most businesses are in one or the other camp.
The sales model
When commissioned salespeople seek more business, it usually comes from a few major strategies:
- Referrals — If you have happy clients, they will often tell their friends. You can drive this process by asking for referrals. Why? Because people don’t consciously think about it. People often draw a blank, but the more specific the request the more likely they will think of names. (“Who else is retiring in the next six months?”)
- Share of Wallet — Your client buys one product in your line. They use other products you offer, but purchase them elsewhere. You make the case that the excellent service you provide would come with purchases of different products, too. In banking it’s called cross-selling.
- Public seminars — Financial services is a good example of education being used as a sales strategy. People will attend a free seminar to learn about a problem (cyber security) or if they would otherwise need to pay to get the information (understanding tax law changes). Attendance transforms them into a prospect.
- Cold calling — It must be effective because do not call legislation was enacted to stop it. Political campaigns, surveys and charities are exempt. Business-to-business calling is allowed.
- Networking — You are familiar with the concept. Professionals gather with others to provide leads. Chambers of Commerce were the forerunners. The New York Chamber was established in 1768. The first European Chamber is said to have been in Marseille, France. It was founded in 1599.
- Mailings — You get them. Your get e-mails too. Often they invite you to seminars.
The marketing model
The concept is simple: When the public is ready to buy, your name is top-of-mind. Largely this is built on brand awareness, although competitive pricing is a major factor.
Advertising – American advertising started in Colonial times. Ben Franklin’s Pennsylvania Gazette carried ads. Over the years it expanded to magazines, radio and TV. It builds brand awareness. You still remember catchy jingles.
Online reviews — Gen X doesn’t trust advertising. They prefer peer reviews. Enter TripAdvisor, YELP and many other sites. It’s been said the absolute numerical score isn’t the decision-making criteria, it’s the number of reviews for the establishment or brand.
Internet searches — You Google “new car” and 1.36 billion results are returned. You pay to have your website link on the top of the first page because studies show 91 percent of users do not go past that first page.
Banner ads — Your search for “new car” will generate banner ads on subsequent searches, your Outlook home page and websites you visit regularly.
Location — People open stores in high-traffic areas. In 2015, there were 14,248 McDonalds across the United States. Convenience and brand awareness bring customers in. Visibility equals credibility.
Discounting — You provide a product or service similar to others. Consumers have choices. You make it easy for them by competing on price. This might be straightforward discounting advertised in newspapers. It might be conditional. They need a coupon. The discount applies to their next purchase. It involves a rebate. FYI: According to the WSJ, 40 percent of mail-in rebates are never redeemed or filed incorrectly.
There are many more ways sales and marketing brings in clients. The message is acquiring new clients requires constant effort. They rarely walk through the door unsolicited. They are not delivered by the stork.
