PROSPECTING FOR 2009

We are all familiar with the Pareto Principal (the 80/20 rule).  Applied to sales, it is said that 80% of our business comes from 20% of our clients.

As you are developing your prospecting and marketing plans for 2009, I would like for you to consider the Pareto Principal on Steroids.  That is the principal that says 50% of your revenue comes from the top 5% of your clients.  Imagine if in 2009, you were able to duplicate your top 5%!  Even if it takes longer than one year, imagine the difference in your business.

Can you do it?  If you do not focus your efforts, it will be impossible to accomplish.  Here are some steps to take as you are completing your planning for 2009:

• Identify the Top 5% of your current clients
• Identify the similarities of these clients (industry, size, characteristics)
• Identify how you were initially introduced to these clients
• Identify the problems you were able to solve for them
• Identify the decision making process they went through to choose you
• Identify the unique sales approach you used to convert them from prospect to client
• Identify other prospects that look like your Top 5%
• Identify clients and Centers of Influence that can introduce you to your targeted list

Experience tells me that most salespeople are challenged and energized when working with and serving their best clients.  If that is the case with you, go get more of them!

Comments

[Derek]

While I like what you're trying to convey here, I think this will require either one of two things: 1) Getting more out of clients who may or may not have the ability to give more and 2) going after more high profile clients.

However, if you were to do something like, 50% of your clients are responsible for 100% of your new sales. This would mean, you would spend extra time trying to get more and more referrals out of your existing clients instead of prospecting cold sources.

What do you think?

[Chris]

Great question.

My thinking was that we get the business from new clients. There is no doubt that the best way to get new clients is through introductions from current clients and Centers of Influence.

[Jim Klein]

Referrals are the name of the game in sales. If I had to work as hard throughout my career to get business as I worked the first few years , I would have never lasted or had the success I had.

Utilizing my clients and prospects as referral sources made my future in sales so much easier and much more rewarding.

However, many salespeople will go back to hitting the phones cold after making a sale rather than ask for referrals from satisfied clients.