Should salespeople stop prospecting?

Should salespeople stop prospecting?

Sales reps spend 72% of their time on non-selling tasks, and prospecting is one of the most time-consuming. (Salesforce).

Yet when you are pursuing complex sales in large companies, it’s critical for the sales team to have deep knowledge about a potential client. As a sales leader, it’s crucial to equip your team not just with product knowledge and sales skills, but also with strategic insights into the companies they are engaging with. Let’s delve into why deep research makes such a difference in sales, and how you can guide your team to master this skill.

The Importance of Deep Dive Research

Imagine your sales team is preparing to approach a major player in the industry—let’s say a company like Caterpillar. This company, with its vast global presence and diverse operations, could be a significant account for your team. But to truly connect with them, you need to go beyond surface-level knowledge.

Deep research involves understanding a company’s:

• Global presence and operations: Knowing the scale and the geographical spread can help tailor your pitch to match specific strategies,  global or in certain locations.
• Revenue segments: Insight into where a company makes its money shows what drives their business and where your products or services can add value.
• Corporate family: A grasp of their subsidiaries and divisions can reveal new avenues for engagement across the broader corporate family.
• Strategic priorities: Understanding their long-term goals and current strategies, such as Caterpillar’s Operating & Execution Model, can align your approach with their objectives.

It’s useful for sales reps to have the experience of conducting deep research on a company because it is an eye-opening experience for them. However, most of the time Scouts (marketing team, sales enablement people, or admins) should do the research and present a detailed dossier to the sales team.

Research is not typically a salesperson’s favorite activity nor is it their best skill. But they must have exceptional information about a prospective customer, be committed to learning and using it, and understand what it means in your large account sales process. The sales team is also responsible to bring new information back to the scouts as they meet with people from the prospect. Sales should also update either the dossier or the CRM, depending on your system for information sharing.

Keep in mind, a Scout can be an AI tool! Salespeople need to have and use deep, detailed information about prospect companies and people. But they DO NOT need to perform that research themselves! Seek out generative AI tools for prospecting, but don’t settle for simple details. Scouts, whether human or AI, need to use the right tools.

Sources for Effective Research

•  ZoomInfo or DNB Hoovers: Basic information about company, key people, financials and history, subsidiaries and other owned companies.
•  SWOT Analysis: This classic framework helps in identifying the Strengths, Weaknesses, Opportunities, and Threats related to the company. Encourage your team to either find existing analyses online or create their own to get insights into where they can leverage their strengths or mitigate potential risks.
• SEC Filings and Annual Reports: Public companies in the U.S. or listed on our stock exchange are required to file comprehensive disclosures with the SEC, including the Form 10-K. The 10K is an information gold mine, detailing everything from financial health to strategic direction and risk factors. SEC finings are free and available from the company’s website or at https://www.sec.gov/edgar/searchedgar/companysearch
• Competitor Analysis: Understanding a company’s competitive landscape can help your team position your offerings more effectively. Tools like D&B Hoovers and ZoomInfo can provide detailed competitor insights, although they do require a subscription.

Implementing the Knowledge

Once your team is armed with comprehensive knowledge about a potential client, the next step is strategic application. They should be able to answer:

• How does our solution align with their strategic goals?
• What specific challenges faced by the company can our product solve?
• How can we position our product as a must-have rather than a nice-to-have?
• What is our most compelling door opening idea ?

As a sales leader, fostering a culture of deep research and comprehensive business understanding by scouts and sellers can significantly enhance your team’s effectiveness. By focusing on these areas, your team will not only increase their success rate but also build more meaningful, consultative relationships with their clients, paving the way for the sustained success and new business that will enable you to gain the lifetime value of the customer.

What’s your experience with prospecting : Sellers, scouts, or AI?