New from BookNet Canada for 2024: Loan Stars - Tech Forum 2024
Matchmaking and Prospecting
1.
2. Billy Booe joined Bluegrass Promotional
Marketing in 2008 as a Senior Account
Executive and was made the VP of
Business Development in late 2010. With
over 29 years of experience in the
promotional products industry, Billy is a
true sales wonder having sold over $1
million with an average gross profit margin
of 43% every year since 1992. His tenure
has also included executive level positions
such as Vice President at Goldman
Promotions and President and CEO of The
Wentworth Company. Prior to working in
the branding business, Billy was a
professional golfer from 1983 through
1986.
3. TODAY: SMART PROSPECTING: TARGET THE
RIGHT BUYERS TO INCREASE YOUR PROFITS
- qualifying leads and prioritizing opportunities
- matching the salesperson AND their company’s strengths with potential
new accounts
- customer cloning, cross selling and getting “horizontal” within existing
customer accounts
PLUS: A GREAT GAME OF SPIN THE
WHEEL FOR FABULOUS PRIZES!
4. LEAD GENERATION AND MATCHMAKING, OR…
How to fall in love
with finding & closing
NEW BUSINESS
6. Lead basics: WHERE DO I FIND LEADS?
Local Resources
- Local Media: Yellow Pages, Local Newspapers, Billboards, Radio Stations…
- Local Business Resources: Chamber of Commerce, Convention and Visitors Bureau, Local BBB, Relocation
Services, County Courthouse, Direct Mail Houses
- Local Advertisers: Look around…Who is spending money for visibility?
Internet Resources
- SalesGenie, Redbooks, Jigsaw, Equifax
- List Companies: Hoovers, OneSource, egrabber.com
- Free Resources – “You get what you pay for…”
www.selectory.com; www.amarketforce.com/; www.masterconnection.com/eng/utilizing.asp
Social Media Resources
- LinkedIn: Very best place to prospect, research, PROFILE and Network your business.
http://www.linkedin.com/in/billybooe
- Facebook: Not a prospecting site. Great reconnection and personal research site. Pros/Cons for business use
- Twitter: Use Twitter to identify hot prospects and begin a conversation with them.
Identify Hot, Profitable Keywords
Identify People with Needs
Listen to What They are Telling You
Deliver VALUE and Don’t be That Guy (or Gal) shoving business cards into everyone’s hand
7. Lead basics: WHAT YOU NEED TO KNOW
Know THYSELF
- are you a problem solver or new business hunter? (many are scared of new sales)
- make Lead Generation a scheduled priority, not a get to it later/down-time exercise
- start with potential clients you are passionate about and/or have expertise in
Know THY TARGETS
- your FIRST GOAL is a qualified list of targets NOT a sales $$ goal
- do research, then do more research– learn everything you can about your leads
- customer clone with successful case studies and similar businesses
Know THY TOOLS
- Avoid: post-its, business card stacks, txts to yourself, bar napkins
- Good: type up a list, take notes and schedule calls, repeat
- Better: become an Excel / Outlook ninja
- Best: integrate Customer Relationship Management (CRM) tools
9. Qualifying: WIN BEFORE YOU BEGIN
A Winning PROFILE
- get quality information: spend the time to RESEARCH
- get social: LinkedIn, Facebook etc. are full of great profile information
- get personal: check websites for custom information and timing clues (i.e. anniversaries)
Winning ATTITUDES
- confidence: make sure you and your company can really serve this prospect
- patience: new business takes time, don’t rush or skip steps
- creativity: sometimes a new angle converts a long shot into a qualified lead (i.e. better web store)
Winning RECOMMENDATIONS
- sometimes the most qualified leads sit right next to or play golf with a satisfied customer
- don’t assume, ASK (and reward?) qualified recommendations
- don’t forget to keep your referral network up-to-date on progress
10. Quantifying: What’s your NUMBER?
Create your goals
- qualified lead goals – you’ll need lots if you’re just starting, few choice leads if you’re established
- know (and schedule) number of hours per week you have for Business Development
- new $$ sales goals – remember to watch your margin
The perfect 10: (a basic rule of thumb)
- 1 qualified lead for every 10 base leads
- 2 new customers for every 10 qualified leads
- 12-20% new business annually is very aggressive
Have a balanced mix on your lead list
- small immediate sales can lead to bigger things
- mirror your present “biggest” customer with an active lead (in case of disaster)
- match locations so you can leverage trips and service expenses
11. What is the value of your time? (In relation to the time
required to land prospect or close opportunity)
What is the value of your time? (Simple Approach - My numbers are…)
- Based on Annual Sales Revenue Produced in 2010 ($1,200,000 /2080 hours = $576.92/hr)
- Based on Gross Profit Production in 2010: ($532,000/2080 hours = $255.76)
- Based on Commission Paid to me in 2010: ($127.88 per hour)
What is the cost of account acquisition? How much time will it take?
- Research, Travel, Phone Calls, Face to Face appointments…
- Prospecting/Marketing costs to build the relationship…
- Consider all costs, do your homework, be realistic – this is your net cost of acquisition
What is the account really worth?
- Traditional Drop Ship Revenues
- Online Store, Fulfillment, Uniform, Service and Recognition, Incentive, Creative, Direct Mail…
- Identify all of the potential opportunities and be realistic about what you can win…
REAL QUESTION: Does the potential revenue increase vs. the risk of acquisition warrant
investing my time???
13. Opportunity 1: Friend who has upcoming family reunion
Client Need: 100 t-shirts
Client Spend per unit: $5.00 per shirt. GPM is 25% or $125.00
Estimated Personal Time to do research, proposal, enter/manage order: 1 hour x$127.88/Hr = $127.88)
Net Value: $125.00 less 50% commission split = $62.50 - $127.88 = -$65.38
Based on the value of our time, it will cost us $193.26 to place this order
For ratio: $62.50/$127.88 = .4887 (Less than 1.0 is a loss. The smaller the ratio, the greater the loss.)
Opportunity 2: Law Firm
Client Need: 2000 ceramic mugs for upcoming event
Client Spend per unit: $3.65 per mug. GPM is 40% or $2920.00
Estimated Personal Time to do research, proposal, enter/manage order: 3 hours (3 x $127.88 = $383.64)
Net Value: $2920 less 50% commission split = $1460.00 less $383.64 = $1076.00/3 hours = $358.67
Based on the value of our time, we will make almost 3 times our hourly value
For ratio: $1076/$127.88 = 8.41 (Greater than 1.40 indicates profitability. The higher the number, the higher the ROI)
14. Let’s take a
REAL-WORLD LOOK
at two potential
large-scale opportunities
15. Opportunity 1: Large Construction Company with 6 separate business units.
Client Need: Corporate landing page with each unit to have its own site/no inventory
Annual Client Spend per unit: $30,000 or $180,000 annually. GPM is 30% or $54,000
Estimated Costs/Expenses for platform development: $8500.00
Estimated Costs/Expenses for creative: $1500.00
Estimated Personal Time prior to acquisition: 120 hours (120 x $127.88 = $15345.60)
Total Estimated Expenses: $25,345.60 to land account
Net Value: Year One Hourly ROI: ($54,000 - $25345.60 = $28654.40)/2080 Hours = $13.77
For Ratio: $13.77/$127.88 = .1076 (Less than 1.0 is a loss. The smaller the ratio, the greater the loss.)
Opportunity 2: Large Gun Manufacturer looking for new fulfillment model
Client Need: New Online Store and Fulfillment program. Order/Inventory/Distribute branded merchandise as well
as gun parts, kits, literature fulfillment.
Annual Store Revenues: $975,000 less COGS of $510,000 = $465,000 in GP
Estimated Costs/Expenses for platform development: $9500.00
Estimated Costs/Expenses for creative: $2000.00
Estimated Personal Time prior to acquisition: 185 hours (185 x $127.88 = $23,657.80)
Total Estimated Expenses: $35,157.80 to land account
Net Value: Year One Hourly ROI: ($465,000 - $35157.80 = $429,842)/2080 Hours = $206.65
For Ratio: $206.65/$127.88 = 2.62 (Greater than 1.40 is profitable. The larger the ratio, the higher the ROI)
25. What’s your “TYPE”?!!
Matching your company’s strengths
- Channel Strengths? (i.e. pharma, consumer goods, financial services) check for non-competes
- Service Strengths? (i.e. creative, custom products, overseas sourcing, eco)
- Industry Strengths? (Best-in-class RFP, web stores, inventory programs, service awards)
Matching YOUR strengths
- Develop “hooks” (content marketing, “free” ideas, gift certificates to try an online store)
- Prioritize – better to spend quality time on a few leads than a shotgun approach
- DON’T BE TYPICAL! Stand out and lead with why you’re TRULY different (Chicken Story)
Evaluate existing “BAD” relationships too…
- “Vampire” accounts that drain resources and energy for new business (1 wooden stake, please)
- Set an expiration date for leads that absolutely will not respond
- Evaluate your margins, see what accounts REALLY mean to your bottom line
30. What’s your “Message”?
Cold-calling, referrals and up-selling
- Learn about your prospect’s company, calendar and corporate initiatives
- Leave a voice mail that SETS THE TABLE, and reference it as you follow through
- Ask friends, customers, associates for referrals and points of connections
- Keep track of your activities (CRM tools) and invest in BIZ DEV every day
The Anatomy of a DOOR BUSTER
- Right Target + the Right Message + the Right Item= ENGAGEMENT!
- E-mail + Snail Mail + Voice Mail + Social = RESPONSE!
- Get Creative and GET HELP: why you may need an EXPERT
- Remember to GET PERSONAL
Are you ready for your CLOSE UP?
- Make your First Meeting Count: prove why you’re NOT TYPICAL
- Find the pain and talk about THAT: no one cares how LONG you’ve been in business
- Keep things neat and professional: DON’T BRING THE KITCHEN SINK
32. NUMBER 1: Work on the prospect pipeline everyday!!!
NUMBER 2: Build resources to obtain prospect data
NUMBER 3: Know Thyself, Thy Targets, Thy Tools
NUMBER 4: RESEARCH…RESEARCH…RESEARCH
NUMBER 5: Win before you begin (Winning Profile, Attitude, Recommendations)
NUMBER 6: Quantifying: What’s your NUMBER?
NUMBER 7: Know the value of your time
NUMBER 8: Qualifying: Understand acquisition costs
NUMBER 9: Do the math – Is the risk/reward worth my time?
NUMBER 10: Is this a good match? If so, make your first meeting count
33. SPIN THE WHEEL
GAME SLIDE
http://bisigimpact.com/cupid/cupid.html
34. William M. Booe, M.A.S.
Bluegrass Promotional Marketing
Vice President of Business Development
Toll Free: 800-520-2583, Ext 1220
billy.booe@bluegrassltd.com
www.linkedin.com/in/billybooe
Bluegrass Promotional Marketing
13325 South Point Blvd., Suite 100
Charlotte, NC 28273
www.bluegrassistheanswer.com
www.bluegrassltd.com
