How do I Begin Marketing to Prospects?
by Gwen Buehler
Marketing Manager, In Touch Today
What IS Prospecting?
Prospecting (sometimes called farming) is the process of locating potential customers through outside lists that can be purchased or rented. It is a step in the selling process in which you identify potential customers for a product or service and educate them on what you do, build trust so that they feel secure working with you, and extend a “call to action."
Is prospecting right for my business?
That depends. Ask yourself this question: “Do I want to grow my business?”
If your answer is yes, you will probably want to prospect. The book, “Getting New Clients, 2nd Edition” by Dick Connor and Jeff Davidson is a helpful tool when designing a new client prospecting plan that will work best for both your short- and long-term prospecting goals.
How much prospecting is right for my business?
Studies show that it takes an average of seven to twelve months to see the return on prospecting efforts assuming you are contacting them one time per month – so be patient. Joyce Caughman, author of “Real Estate Prospecting”, states, “You can expect good results from farm marketing- 20% of the farms business by the end of the second year; 50% by the end of the third year, and up to 75% after that."
How do I obtain a list of prospects?
Many title companies offer farming lists for purchase. Some lists are free if you work with one of their representatives. When purchasing or renting a cold list of prospects from a list company, you can provide search criteria so you are sending to a targeted list. By doing so, you will likely find a higher return rate on your investment since those prospects are likely interested in what you have to offer.
How do I decide who to prospect to?
If there is a particular specialty you have when doing business, the best place to start prospecting is to a cold list of that particular market. Find your niche and mail to them consistently. Here are some niche market ideas for the Mortgage and Real Estate
Industry:
First Time Homebuyers
Credit Problem Candidates
Investment Property Loans
Commercial Loans
Real Estate Investments
Dream Home or Jumbo Loans
Refinance/Switch To Fixed
Move Up/Jumbo Loans
Also consider one of the suggestions provided by Laura Laaman in the article titled “Top sales people never stop prospecting for new clients” published in the “Denver Business Journal”.
Invest in targeted subscriptions
Get your business journal's Book of Lists
Prospect where you do business every day
For the complete list of suggestions and to read the entire article, click here.
What message should I sent to my prospective clients?
While it is important to be confident in yourself as a professional and the services you provide, keep your prospects needs and desires top of mind when marketing. Your message shouldn’t be how wonderful YOU are, but rather how wonderful the products and services are that will meet their personal desires. Constantly remind them that you are ready to serve them and you will do what it takes to satisfy their needs.
Is there any way to improve my response rate?
Yes! Send marketing pieces that are memorable, usable, valuable, fun and most importantly genuine. Stay consistent in the look and feel of what you send because, by instinct, recipients will recognize the design and message and relate it to you. By consistently sending an eye catching postcard series, your prospects will look forward to receiving mail from you while you continue to build credibility. Provide them useful information by sending them an educational brochure on a specific topic. Help them learn more about you as well as the subject.
What is the best way to reach my prospects?
The most effective way to prospect new clients is by sending a postcard. Not only is it cheaper to mail but it does not require opening. By sending something that is colorful, interesting and delivers a simple yet valuable message has a higher likelihood of being read and received. Also, offer something special to your prospects to call them to action- a discount, a free no obligation consultation or a free gift for setting up an appointment. Build credibility with your prospects by using strong testimonials from your past clients.
Brad Roderick, of Hitachi Koki Imaging Solutions, writes in his article titled “Getting Your Foot in the Door: Using Testimonials Effectively” that "Testimonials are one of the greatest tools ever to be underutilized and neglected. He is in fact right! Use your past clients testimonials as a way to convince your prospects to put their trust in you! (read entire article here)