What is Sales Prospecting and How to Do It the Right Way
A prospect is a person who has been qualified to be considered a potential customer. Prospecting is the act of identifying these people, qualifying them, and reaching out to them – it’s part of a direct sales strategy.
Prospecting is in fact what makes or breaks a sales strategy. Even if you have the perfect sales approach performed by the most competent sales reps, you will probably miss the mark if you reach out to the wrong people. The old spray and pray approach does not cut it anymore.
You need to define what a potential customer looks like, and then reach out to them in the most personalized manner. Let’s see how you can do this.
What is Sales Prospecting?
Sales prospecting is all about finding the right people to connect with and reaching out to them with the goal of making a sale. In simple terms, it's about figuring out who your potential customers are (your prospects) and deciding the best way to contact them.
To identify prospects, you'll look at certain criteria that define your ideal customer. These might include factors like age, gender, interests, income, or job title. The idea is to focus your efforts on people who are most likely to buy from you.
In this article, we’ll walk you through the entire sales prospecting process. Here are the key steps:
- Define your Ideal Customer Profiles (ICPs)
- Find the right contacts
- Reach out to those contacts
- Close the deal
Sales Prospecting vs. Lead Generation
Sales prospecting and lead generation might seem similar at first glance. After all, both aim to connect you with the right people and encourage them to buy from you. But they’re actually quite different in how they work.
Sales Prospecting is a more targeted approach where salespeople identify, research, and reach out to potential customers (prospects) who have shown some level of interest or fit the ideal customer profile. It involves direct contact, nurturing, and moving prospects closer to a purchase decision.
Lead Generation is the process of attracting and capturing potential customer interest (leads) for a product or service through various marketing strategies. It's a broader activity aimed at building awareness and generating interest.
Sales Prospecting Steps
Curious about turning a potential customer into a loyal client? Here are the four key steps in the sales process that will take you from that first connection to building lasting relationships.
Let’s start with the big one—knowing who you’re looking for.
1. Defining Your Ideal Customer Profile (ICP)
Imagine you’re at a party, looking for someone interesting to chat with. You wouldn’t just talk to anyone, right? You’d look for someone who seems like they might share your interests. That’s exactly what an ICP does in the business world. Creating an ICP helps you focus on the people most likely to buy from you.
But here’s the challenge: many sales reps struggle to find good leads—46% say it’s their biggest frustration. They often spend too much time and energy chasing unqualified leads.
If they defined their ICP from the start, their efforts would be much more effective. So, how do you create this magical ICP? Start by looking at your best and happiest customers. What drives them? What are their challenges? Here are a few things to consider:
- Size: Are they startups or large corporations?
- Industry: Are they in tech, finance, healthcare?
- Location: Are they local or spread across the globe?
- Money matters: What’s their typical revenue?
- Problems: What issues does your product solve for them?
- Decision-makers: Who makes the decisions?
- Tech setup: What other tools do they use?
- Growth: Are they stable or rapidly expanding?
Let’s look at a concrete example. Say you’re selling a high-end cybersecurity solution. Your ICP might look like this:
- Financial services companies with 500-1,000 employees
- Located in major UK cities
- Annual revenue of $100-500 million
- Struggling with increasing cyber threats and regulatory compliance
- Using cloud-based infrastructure
- Decisions made by the CISO and CTO together
- Experiencing rapid digital transformation
With a detailed ICP like this, you’ll know exactly who to target, what messaging will resonate, and which pain points to address.
But remember, your ICP isn’t set in stone. As you learn more, tweak it. It should evolve with your business. It’s worth the effort because 67% of lost sales happen when you’re targeting the wrong audience.
The bottom line? A solid ICP helps you:
- Hit the mark with your marketing
- Create products people want
- Keep customers coming back
- Spend your time and money more wisely
Now, let’s move on to the next step.
2. Finding the Right Contacts
You've nailed down your ICP. Awesome! Now it's time to turn that ideal customer profile into real, live contacts. This step is all about connecting with the right people at the right companies.
Social Media
Social media is a treasure trove for finding potential customers. In fact, 72% of sales reps use it for prospecting. Platforms like LinkedIn, Facebook, Instagram, and YouTube are particularly popular for this.
For B2B prospecting, LinkedIn is a top choice. Use the search function to find people with specific job titles at your target companies. But, while LinkedIn is great for identifying prospects, getting their email addresses can be tricky.
Enter Skrapp.io. This handy Chrome extension works quietly in the background as you browse LinkedIn profiles, finding verified email addresses for your prospects. It saves you the hassle of manual email hunting and turns LinkedIn into a goldmine of contact information.
Company Websites
Check out the ‘About Us’ or ‘Team’ pages on company websites. They often list key decision-makers, giving you direct insight into who to contact.
Industry Events and Conferences
Whether virtual or in-person, industry events are excellent for networking. Attend talks, participate in Q&A sessions, and don’t hesitate to strike up conversations during breaks. These connections can lead to valuable contacts.
Online Forums and Communities
Platforms like Reddit, Quora, or industry-specific forums can be goldmines of information. Look for active participants discussing topics related to your product or service—they could be your next lead.
Referrals
Tap into your existing customer base and ask if they know anyone who might benefit from your offering. A warm introduction can open doors much faster than cold outreach.
Email and Directories
Professional directories and tools like Skrapp.io can help you find verified email addresses directly from company websites. Install the Skrapp Chrome extension to gather emails as you browse. Once you’ve got the emails, craft a personalized, engaging message to start a conversation.
When searching for contacts, keep your ICP in mind. Are you targeting the CEO, or is the marketing manager a better fit? For example, if you're selling cybersecurity solutions, you’d want to connect with CISOs or CTOs at financial services companies.
It’s better to have a list of 50 highly relevant contacts than 500 that don’t quite fit the bill. Once you’ve got your list, organize it. Use a CRM system like Salesforce, Pipedrive, or Freshworks, or even a simple spreadsheet, to keep track of names, roles, companies, and other relevant info. This will make your life much easier when you start reaching out.
Pro Tip: Choose a CRM with project management features so you can easily manage the whole prospecting process from one place. Many offer free trials, so you can test them out before committing.
When adding contacts to your CRM, go beyond just names and email addresses. Include:
- Job title and department
- LinkedIn profile URL
- Recent company news or achievements
- Personal interests or hobbies you’ve discovered
- Notes on past interactions or common connections
Finding the right contacts takes time, patience, and a bit of detective work. But when you reach out to the right person with the right message at the right time—that’s when the magic happens. Your response rates will go up, your sales cycle will shorten, and your close rates will improve. Every sales rep’s dream, right?
3. Reaching Out to Contacts
Now it’s time to reach out to your prospects—whether that’s sliding into their inbox or leaving a voicemail.
Studies show that 60% of buyers prefer to be contacted by email. It’s less intrusive than a phone call and gives them time to think about your message. But don’t just send a generic email and hope for the best.
Make it Personal
Start with a strong subject line. Mention something specific about their company or a recent achievement. This shows you’ve done your research and aren’t just sending out mass emails.
Keep the email body short and to the point. Briefly introduce yourself, explain why you’re reaching out, and focus on how your product or service can solve their problem. Remember, it’s not about you—it’s about how you can help them.
Damian Grabarczyk, co-founder and growth marketer of PetLab Co., shares a great example:
"In our early days, one of our biggest challenges was reaching our niche audience of health-conscious pet owners. We knew generic outreach wouldn’t work in such a specialized market. So, we took the time to really understand our ideal customers' needs and concerns. With that knowledge, we crafted highly personalized outreach messages that spoke directly to those needs. It wasn’t just about sending emails; it was about building a genuine connection with each contact. By focusing on quality over quantity and ensuring every touchpoint was meaningful, we didn’t just reach our target audience—we resonated with them. This strategy was crucial in our early success, driving strong engagement and laying the foundation for our loyal customer base."
If you don’t hear back after your first email, don’t give up. Nearly half of sales reps don’t follow up, and many give up after just one attempt. But persistence pays off—following up can increase your reply rates by 49%.
A Good Follow-Up Strategy
Wait about 3-5 days before sending your first follow-up. Keep it friendly, and add something new, like a relevant case study or an industry insight. Show that you’re genuinely interested in helping them, not just making a sale.
Also read: Best Email Deliverability Tools in 2024 [Free & Paid]
Timing Matters
When you send your emails can make a big difference. The best times are usually between 9 and 11 AM, with Tuesdays and Thursdays being the most engaging days. But don’t hesitate to experiment with different times to see what works best for your audience.
If email isn’t getting the results you want, try other channels. LinkedIn messages are great for B2B sales. If you have their phone number, a call might be more effective—just be sure to respect their preferences.
Keep Track of Your Progress
As you go through this process, make sure you’re keeping track of your efforts. Note when you reached out, how you did it, and any responses you received. This is where a good CRM system comes in handy. It helps you stay organized and ensures that no promising lead slips through the cracks.
4. Closing the Deal
The final step in the sales process is closing the deal—where all your preparation and relationship-building pay off.
There’s an old saying: “Listen more than you talk.” This is key here. Ask your prospect about their needs, challenges, and goals. Then, show how your product or service fits perfectly into that picture.
Watch for Buying Signals
Pay attention to signs that they’re ready to move forward. Are they asking detailed questions about pricing or implementation? Introducing you to other decision-makers? Discussing specific use cases? Inquiring about contract terms or timelines? These are all positive signals that it’s time to close the deal.
When you see these signs, be direct. Ask for the sale with something simple like, “Based on what we’ve discussed, are you ready to move forward?”
Handling Hesitation
If they hesitate, don’t worry. Ask them what’s holding them back. Their answer will give you valuable insight into how to proceed.
Common objections might include:
- Price: Clearly demonstrate the return on investment.
- Lack of Need: Revisit their pain points and show how your solution addresses them.
- Timing: Discuss implementation timelines or any current promotions.
- Authority: Offer to speak with other decision-makers.
Prepare responses to these objections ahead of time. Use data, case studies, and testimonials to back up your points. But make sure you sound genuine, not like a rehearsed script.
If they’re still undecided, consider creating a sense of urgency. Mention a limited-time discount or an upcoming price increase—but be honest. Fake scarcity can quickly destroy trust.
Set the Next Steps
If the deal doesn’t close right away, make sure to set a specific next step. This could be sending a formal sales proposal, arranging a product demo, or offering a trial. Always agree on a specific date for this step before ending the conversation.
Follow Up Promptly
After closing, follow up quickly. Send a thank-you note, provide any promised information, and outline the next steps for onboarding or implementation. A smooth post-sale experience can lead to customer loyalty and valuable referrals.
Final Words
True personalization in sales outreach goes beyond just using your contact’s first name. It’s about tailoring your entire approach—the message and how you deliver it—to each individual prospect.
Achieving this level of personalization takes effort. You need to:
- Define Your Ideal Customer Profiles (ICPs): Identify your ideal customers based on specific criteria.
- Find the Right Contact Information: Track down accurate details for your prospects.
- Reach Out Through Preferred Channels: Use the communication methods your prospects prefer.
- Personalize Your Message: Customize your message to address their unique needs and interests.
- Close the Deal: Apply the techniques that fit their buying signals.
Following these steps will help you excel at sales prospecting. We hope this guide supports you throughout the process.
