Millennium Marketing Research®

Tom Schori DBA Millennium Marketing Research®, 808 Ironwood, Normal IL 61761, 309-532-8466

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Prospecting: the 'lifeblood' of any business.

By Thomas R. Schori, Ph.D., and Michael L. Garee, Principals,  Millennium Marketing Research, 808 E. Ironwood, Normal, IL 61761-5239. Tel. 309-532-8466 -

Rare indeed is the business organization that doesn’t have the ongoing need to prospect for new customers, or, at a minimum, the need to prospect for additional sales of product or services among existing or former customers. Nonetheless, many companies today¾even the ones that are strongly driven by an outside sales force¾either don’t do enough prospecting on a regular basis, or the prospecting that they do is either ill-thought-out or totally inadequate to the task, or both.

Why is this so often the case? We think there are several reasons.

First, in order to implement and guarantee an effective, on-going prospecting program, top management must be firmly committed to the program, and clearly communicate that high level of commitment to everyone in the organization. With the many other, "more pressing" issues facing top management¾profits, business operating expenses, return on investment, stockholder equity, ad infinitum¾unfortunately, something as "nebulous," as imperfectly "measurable" as prospecting can¾and often does¾get short shrift or paid mere "lip-service."

Second, conducting effective prospecting is never an easy thing to do. It takes, time, considerable effort and it can be somewhat expensive. And, because of this, many managers exhibit little tolerance when they don’t see immediate results, i.e., scads of new business pouring through the front door. This explains a lot, we think, about why organizations fail to maintain an ongoing prospecting program. They simply get "spooked" before the program has had ample time to begin producing positive results.

And, finally, for those in the organization who actually have to conduct active prospecting activities, e.g., salespeople, the whole chore can be about as appealing as getting a root canal. Why? Because, a lot of the time, virtually any prospecting activity is not going to yield anything, at least not initially. So, for those salespeople in an organization who are actively prospecting on the telephone, via fax or through the mail, or even in person, that stacks up to mean just one thing¾a LOT of rejection!

Any solutions to these problems? We think so. Here are some thoughts to consider.

Gaining management’s commitment. To establish a new prospecting program, or to resuscitate a moribund existing program, getting management to at least commit to the "easiest" type of program, one aimed at existing or former customers, many times is the best way to proceed. As any marketer knows, the people most likely to make purchases of a company’s products and services are those who have previously made such purchases. Once management sees how effective a prospecting program aimed at these targets can be¾and it can be if it’s designed intelligently and, again, is given sufficient time to work!¾it will be somewhat easier to sell a program aimed at generating a reliable, steady stream of new customers.

Gaining cooperation and commitment throughout the organization. Obviously, once top management actually commits to some type of prospecting program, the various other levels of management throughout the company and the employee group will at least give their tacit support as well. But, if a prospecting program is to be a success, certainly considerably more than mere tacit support will be required. As is the case with top management, many people in the organization¾and that particularly includes middle management¾may have to be "educated" about prospecting. Some areas to consider might be the following:

Necessary program elements. Done correctly, prospecting is a multi-faceted, well-coordinated, endeavor, and can involve a number of approaches and media. For example, media advertising can be used in the prospecting mix. Sales promotion and direct mail are obviously forms of prospecting. But prospecting may also include salespeople "cold-calling" on the telephone, via fax, or even in person. Regardless of the approach or the media mix utilized, prospecting is something that virtually every company must take very seriously and practice on an ongoing basis if it intends to remain in business for the long-term.

Remember, give it time to work. How long before positive results are produced? That depends upon a number of key factors¾the product or service being offered, the specific approach and/or media being utilized and among which "targets" the prospecting is being conducted. For example, usually though not always, the more expensive the product or service, the harder it will be to find qualified and committed buyers. Generally, prospecting activities which involve getting something tangible, such as a brochure, a sample, etc., into the hands of prospects, are more productive than those activities which rely exclusively upon verbally communicating (such as in telephone prospecting) the attributes/benefits of some product or service to prospects. And, of course, if prospecting activities are aimed at the wrong targets, all bets are off! The answer, then, becomes that there is no single answer to the question of how long does it take for prospecting activities to begin bearing fruit. It depends. But on a more definite note, it should also be noted that the more prospects who are contacted in a meaningful, well-thought-out fashion, with a well-designed offer, the sooner will be the time when positive results will be forthcoming. Or, as they say in the sales business, it’s really just a "numbers" game. The more people "seen," the more who will ultimately become customers.

Primary responsibility for the program. Normally, the Marketing Department (or one of the "sub" departments within it, such as sales, advertising, sales promotion, etc.) will have primary responsibility for the bulk of prospecting activities. But in some organizations, such as those where significant numbers of employees come into regular contact with customers and prospects, e.g., a retail outlet, virtually everyone in the organization is responsible to a certain extent for prospecting.

Does all of this seems quite "obvious" to you? Then, you’re undoubtedly associated with a company that knows the value of a well-thought-out, well-coordinated, well-executed, ongoing prospecting program. On the other hand, if your company’s prospecting is either non-existent, or essentially a "hit-or-miss" proposition at best, now might be a good time to rethink your efforts. Indeed, both the future of your company and your own future will ultimately depend upon it!