Six Things to Know Before a Client Is Ready for a Sale
Sales often gets a bad reputation solely because of poor lead qualification. If you are pitching your services to a successful client but haven’t done the homework to determine if this client is ready for a sale, you’re making it awkward for all parties involved. The way you take the ick factor out of selling is by lead qualification. Lead qualification is what tells you someone is in sales mode, not passively looking for solutions.
Once a prospect is deemed to be in sales mode, certain conditions must be met for the client to be ready to close the sale. These conditions can be assessed by using a lead qualification roadmap. While there are several variations, including BANT, at Prequal, we prefer to use a 6-factor test that consists of:
Needs and Wants: Does the prospect have an identifiable problem?
Offerings: Do you have a solution to this problem?
Timing: Is finding a solution to the problem a priority for the prospect?
Decision Makers: Who has the authority to make decisions regarding sales?
Value: What are the expected outcomes and goals?
Budget: Does the prospect have the resources (money, personnel, etc.) to invest in the sale?
But First, Keep In Mind the Value of Authenticity
People prefer to do business with people they know and like. To make a sale, you must first know who your prospect is. The more you know about them, the better. Often identification information can be gathered through a network audit. In fact, a network audit is the most efficient and effective way to identify prospects and understand the composition of your sales segments.
The Six Lead Qualification Factors
Factor #1: Needs and Wants
A prospect is more likely to be ripe for a sale if they have an identifiable problem you can solve. It is important to note that sometimes prospects don’t realize they have a problem until you point out the solution to it. Before you pitch a client, make sure you have a clear understanding of the problem you are trying to solve.
Factor #2: Offerings
Once you have a clear understanding of the problem, a prospect will need to understand how you can solve it. There may be many possible solutions to a prospect’s problem, so you should identify the ways you and your solution stand out.
Factor #3: Timing
Sometimes a prospect will have a problem and you will have a solution, but solving this problem might not be a priority. In these cases, this prospect may be a key part of your network, perhaps as a superfan or a dream client, even if they are not a current viable prospect.
Factor #4: Decision Makers
As they sang in the musical “Hamilton”, you want to be in the room where it happens. To make a sale, you’ll need to be meeting with people who have the authority to make the sale.
Factor #5: Value
A critical factor to a successful sale—and future sales, as well—is expectation management. Before closing a sale, you should consider spending time with the prospect to review expected outcomes and goals.
Factor #6: Budget
Despite best intentions and a willingness to close a sale, a prospect will lack the resources—whether money, personnel, time, etc.—to close the sale. If you can’t adjust the resources necessary to close the sale, then you may want to consider this prospect a superfan or dream client in your sales segment.
Why Lead Qualification Matters
Lead qualification matters so you can appropriately allocate time, energy, and resources to maximize sales. We all have limited time and money, and you don’t want to use up your resources pursuing a contact who may be very interested in a sale but lacks the authority to close it. Similarly, if a prospective client lacks the resources to complete a sale, your strategy and message will also change if/when they do have the necessary resources.
The 6-factor test will prove to be a helpful resource as you consider the possibility of a sale. But rather than using the 6-factor test as a checklist, it should be used to drive meaningful conversations with a prospective buyer and build an authentic relationship with your network.
Download Prequal’s FREE Lead Qualification Checklist and start properly qualifying your leads