This is a topic that many sales professionals wrestle with, although some get adept with deceiving themselves.  Prospecting is at the foundation of many sales positions, and you cannot avoid it when in those positions.  Take a moment to read this and remember that everyone’s metrics are different based on their effectiveness.

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There is no magic to prospecting, just some real hard work, some simple tactics and gambits, and a realization that the only way to win is volume.  That is volume of calls, volume of appointments, and volume of proposals.  Without that, you will not have a volume of sales. Sales professionals who have done this long enough know that your best effort, even when well directed will still result in a certain amount of rejection and wasted time.  The key to dealing with the rejection is to make enough calls that the rejections don’t bother you and the feelings of wasted time are eclipsed by the successes that you generate. As was discussed in Black Sales Journal, 9 Prospecting Tips For The Black Sales Professional (2/10/2011), this is the most necessary of your activities, even if you are having a banner year.

What is the Definition of a Prospect?

A prospect is a potential customer that you are attempting to take to the next stage of the buying relationship.  Once they buy, they can remain a prospect, even though they are a customer for one of your products or services.  This definition will keep it simple for this discussion.

How Many Prospects Do You Really Have?

You must take an honest accounting.   How many of your prospects truly have an opportunity to move to the next level?  If there is doubt as to their potential, then they fall a “grade”. If you don’t use a system already to grade your prospects, then consider this one: Divide your prospects into 4 groups -

Grade A – High Probability, based on your relationship with the buyer, a match between buyer needs and your product.  Spend adequate time to test these prospects.

Grade B – Better than Average Probability, based on access to the decision maker, buyer needs and your product.  Spend adequate time on these as well.

Grade C – Average Probability, good match of product features and benefits.  These deserve time to develop, and should be reduced to Ds if they do not allow contact or show promise.

Grade D – Lower than Average Probability, based on difficulty with buyer access.

Kiss the Grade Ds Goodbye

Your distribution of “prospects” in the grades is important.  That is why you must be very honest with yourself.  Honest with yourself in a way that you are not honest when discussing your sales funnel with your manager.  This brutal honesty is required because you cannot succeed if you do not have the requisite number of prospects. The first thing I suggest you do is to trade off your D accounts!  If you cannot trade them to another sales professional, then I would suggest you shelve them, as they will only hurt you if you spend time or other resources on them.  D accounts may be a D because of no chance of a relationship, or because of some evidence of preference or prejudice.  Whatever it is, if it is rated a “D”, I would suggest you don’t touch it.

How Many Prospects Do You Need? – Know Your Ratios!

This depends on your goals, and the kind of sales that you are involved in.  To an even greater extent, that is dependent on you, and your sales abilities and effectiveness.  If you are still learning and honing your skills, you possibly will need more than someone who is a consummate veteran. Review your sales records, and calculate your sales ratios. Know these items:

• How many telephone calls you require to get an appointment on average?
• How many appointments it takes to get a proposal?
• How many proposals it takes to get an order?

You can get this from your records if you have been selling for a while.  It will help you construct your ratios.  Your ratios are important because they reflect your selling styles and abilities.  It makes for a good exercise. If you are successful in getting an appointment 1 out of 5 phone calls on average, you know a valuable variable.  If you also know that it takes you 2 appointments on average get 1 proposal, you know another key variable.  The combination of these builds a large part of the equation.

Now if you determine that you get an order on 1 out of every 5 proposals for a hit ratio on proposals of 20%, you know some good information. In the example above, you will note that:

In the example above, you will note that:

Successful Sales –       1

Proposals –                   5

Appointments –           10

Calls Required –          50

Your Ratios are YOUR Ratios!

You must know and respect your ratios.  They will not be exact, yet the longer that you are involved in sales, the ratios will begin to have their own rolling history.  You need to believe them as they only respect the historical, yet you also can change them. If you annual sales goal for new customers is $250,000 and the average sales of the product your company sells is $50,000, you need 5 (average) sales to reach goal. Your ratios would require the following amounts of activity:

Calls Required -            250

Appointments –              50            (1 in 5 phone calls yields an appointment)

Proposals –                     25            (2 appointments gets 1 proposals)

Sales –                               5             (20% of the proposals end in sales)

Meets goal –                  $250,000 in new customer sales

So if you take your goals, and include YOUR ratios, as opposed to the company ratios, you will get a clearer picture of what you need to do.  Remember, as a Black sales professional, your product as well as your receptiveness by the buyer affect your ratios.  There is still racial preference and racial prejudice that will weave its way into the equation.  Be prepared for it, and stock your prospect base in preparation for it. We are talking about averages so be careful.  You may need more or less.  This will serve as a starting point.

A Couple of Tips

Before I close I will drop a couple of tips regarding the impact of your activities.  In any sales job, no matter what they are called, there are activity standards (such as prospecting and quoting), and there are production standards (such as number of sales and dollars of sales.) If you are successful in getting the production standard, you will probably have a job for the next round, yet if you fail in getting your activity standard, and also fall short of your production standard, you are probably in trouble.  Be aware of your goals for both activity and results.  If you are successful in getting your activity through prospecting, and incorporate your ratios, you have a chance to reach your results Good luck and good prospecting.

Invariably it will happen no matter what minority group you represent.  With all of the good customers in the world, we forget that there are some who just have no filter on what they should say.  They just don’t get it!  Know how to deal with these situations.  Always be prepared!

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Customers come from all walks of life, and certainly have their goods and bads, but we cannot live without them in the sales world.  They are human, and with that in mind, are capable of saying things that are subject to translation, and sometimes downright wrong and insulting.

This post covers how you might react to those comments, or better yet, how you might better react to those comments.  Remember, just as we stated in Black Sales Journal August 22,2011, Reacting to Improper Racial Comments from Co-workers and Black Sales Journal 8/29/2011, Reacting to Improper Racial Comments from Managers, which covered how you might react to statements from co-workers and from your manager, you have the right to react, I am just suggesting to you do so in a professional manner.

Just because someone is doing business with you does not mean that they can say things that are demeaning or even cruel without a formidable response.

Intent Does Count

Before we get deep into this, I would like to point out that intent does count.  I would like to explain that there are intentionally harmful racial comments that are made with malice, and racial comments that are made in ignorance.  Although neither of these should be considered acceptable, and they both probably warrant a reply, the requisite responses might need to differ.

Statements that are made because one is ignorant and unenlightened obviously have the same effect, yet have less gravity than a statement meant to harm by some one who is rude and insensitive.  Here are a couple of examples:

Statement A: During a business meeting your customer talked about safety in the area that his business is located. He says with a smile… “They say that one of your brothers pulled off the robbery of that fast food joint down the street last night.”

Statement B: During a dinner entertainment session, your buyer indicates she needs to terminate a Hispanic employee “who is still wet from the swim across because of the new immigration laws.”

Both statements are offensive, and both deserve a response.  Which statement is, in your view, is the most racially charged?  How would you react to each of these?

Always be calculated in your response and consider the intent.  I will discuss how I would respond in a moment.  First I want to acquaint you with a personal situation and how I handled it.

A Personal Example

When I was in sales, many of my customers were owners of trucking companies.  This industry, like many others has people that say what is on their mind, and sometimes what is on their mind can be disparaging.  In the instance that I am about to cite, I definitely responded incorrectly the first time, by not responding.  When the second time came around, I think I definitely handled it in the correct manner.

I was on a call basically to deliver policies to the account and we got involved in a conversation about a driver who had generated a lower back workers compensation claim.  Everyone knows that lower back claims can be subjective, and tend to linger for long periods.

During the call my customer indicated that we should investigate the claim of Ben T.  He stated that he had reason to believe that Ben was malingering, and it was our job to get to the root of it and make sure that the claim was compensable, and that payments should be stopped until we knew for sure.  He then said, “You have a good work ethic, and I wish all of your people had that same work ethic.”

I was a 26 year old sales professional and initially, my response was to say nothing other than that I would check it out.  I thought I needed the client, and needed my money.  I realized within minutes that my response was wrong.  It kept me up at night for a little bit, and relived it several times.

When I returned to the customer location the following week, I explained to him the situation behind the back claim.  This individual was going to undergo surgery and his claim was legitimate to our people.  I then sat with him, looked him in the eye and said, “Respectfully Bob, I take offense to your comments last week about Ben T. and work ethic.”  He developed a puzzled look and quickly said, “I did not mean to offend you Michael.”  I then advised the following, “I know you did not mean to offend me, as we speak openly, yet you offended a whole community of people, of which I am one.  It would have been the same as if I said that you are special, but most of your people are drunkards (Bob was Irish).”

A light bulb went on in Bob’s head.  I could see it happen… enlightenment, that is.  Bob said, “Point taken, but we Irish like to drink!”  I quickly responded, “You do get my point, don’t you?”  We smiled and completed the meeting.

Back to Our Questions

Well, both situations are enough to of these statements are bothersome, and unfortunately situations like this happen in the workplace frequently.

Regarding Statement A:  This is the least charged, as this person is attempting to refer to a felon as a ‘brother’ presumably because we often call Black people ‘brothers’ and ‘sisters’.  It should not have been said but you would not have to use a nuclear bomb on this one.  Your response should be simple and professional, “Respectfully, no one who would do that is a brother of mine.”  Remember, this is a customer.

Regarding Statement B: This is a racially charged statement.  You might hesitate to respond to it, yet the races are interchangeable in this case.  If you do not respond, I suppose you would be waiting until this customer got around to taking a ‘shot’ at African Americans  next.  An improper remark against any group or religion is an attack on your diversity.  Your response should be professional and impactful.  Something like, “Kristin, honestly I take offense to that statement.”  She knows it was wrong and if she is worth her salt she will not make another one like it.

Respect your principals.  I am not saying that you should not work with a customer as much as you need to be true to yourself.

Always be true to yourself.  Always be the professional.

Your comments are appreciated.