Prospect identification has been called the lifeblood of selling. A continuous supply of new customers must be found to replace those lost for various reasons. “Prospecting” is the systematic process of locating potential customers. Prospecting requires careful planning.

Analysis of both your product and your existing customers can help to identify, locate, and profile your prospects. Important sources of new customers include referrals (endless chain referrals and referral letters and cards), centers of influence, friends and family members, directories, trade publications, trade shows and special events, telemarketing and e-mail, direct-response advertising and sales letters, websites, computer databases, cold calling, education seminars, networking, and prospecting by nonsales employees. The use of social media to secure new prospects is also discussed.

Prospecting techniques produce a list of names that must be evaluated using criteria developed by each salesperson. The process of prospect evaluation is called “qualifying.”

The qualifying process involves finding answers to several basic questions: Does the prospect have a need for my product? Can the prospect make the buying decision? Can the prospect pay for the purchase? Does the prospect have the willingness to buy my product? An estimate of the amount of sales that could be generated from this prospect and the prospect’s credit rating should also be determined.

Most companies rely on customer relationship management (CRM) systems to keep track of sales data. The collection of sales intelligence beyond sales data enables salespeople to impress their knowledgeable customers with insights that are above and beyond the product and/or service features and benefits.

Salespeople need to allocate their resources wisely to make the most of the prospect base. They do so by conducting account analysis, using either the portfolio model or the sales funnel model.