The Opportunity Fallacy
Why everyone is NOT a prospect
I was once told by a sales manager of mine that "anyone with a heartbeat" is a prospect.
Sadly, I believed him, then spent six months chasing everyone and everything that looked like it had promise. Such bad advice. I call it the opportunity fallacy.
Qualifying prospects is a HUGE part of sales. Not everyone is a great prospect, not every prospect is a match for your product or service. Duh.
So easy in concept, but how are you qualifying your prospects and how many levels deep do you go?
Level 1: Qualify Profile
Many companies create an ideal customer profile (ICP), with upper and lower limits for what they consider quality (revenue, deal volume, product fit). This can often be automated with a simple questionnaire. Marketing can be heavily involved in helping qualify at this level.
Be diligent about your frontline qualification. If you make exceptions or go outside the ICP, know exactly why. For example, someone might not fit the box, but landing them could be strategically important to gain entry into a new market.
Level 2: Qualify Fit
Once they get through the initial qualification process, the next level is understanding if there is a product/service fit.
Do they have a problem your solution can solve?
Does your solution align to create a win for them if they were to implement it?
Many sales calls or demos are geared towards finding this match and closing once they find it. This often takes person-to-person interaction (a meeting, demo, qualification call). If you refine your process, you should have an outline for this interaction, filled with questions. This is also a key measure towards the top of the sales funnel.
Level 3: Qualify Timing
A portion of qualified prospects (Level 2) will need your solution now. For a prospect to commit, there needs to be urgency to make the change, so qualifying for time is key.
Those that meet profile and fit but not timing typically won't help meet immediate goals, but you should create a system to ensure they don't get lost (e.g., a CRM).
In your qualifying, you need to understand:
Why does this prospect need your solution now?
What would the impact be if they waited six months? If the answer is little to none, then they are not qualified for time.
Most often, you qualify for time at the end of a sales call after determining fit. This is a key step and should be included in your process to ask questions about timing and why now is important.
Many pipelines get filled with opportunities that were a fit but not qualified for time, and many sales leaders wonder why deals aren't closing. Level 3 qualification is the most likely culprit.
If you know someone who needs to hear this, please share!
Remember: Not everyone with a heartbeat is a prospect. Create systems to qualify each of your prospects during your sales process for profile, fit, and timing. You'll have a much clearer picture of your pipeline if you do.
Happy Selling!
-Joe