Some salespeople chase bad leads. It’s one of the most frequent problems I see. They invest lots of time and resources only to find out it’s a poor quality lead and no sale is made.
This article provides a sure-fire way to qualify sales leads and gives you examples of what to say/ask your buyer. It’s called the “BARTS Method”.
Does the buyer have the Budget?
It is often challenging to ascertain the buyer’s budget. However, our research suggests that buyers are generally comfortable revealing information about their budget. When we asked decision makers how comfortable they are revealing information about their budgets, nearly 80% indicated they were very or somewhat comfortable.
If a buyer fails to give you any indication of his budget, use these follow up questions…
- “Based on what we’ve discussed, the investment for the right solution could be in the $5,000 to $10,000 range. How does that fit within your budget?”
- “Our services typically range between $800 and $1,500/month. How does that fit relative to what you are expecting?”
These questions will reveal some information about the budget. The buyer might say, “That’s way out of my league” or “that sounds about what I was thinking”. At that point you’ll have a much better idea about whether your buyer meets the “budget” criteria.
Does the buyer have the Authority?
A top sales performer needs to determine who has the authority to make the deal – who has the authority to “sign the check”. If you are investing your time with someone other than the decision maker, you run the risk of wasting your time. Unless you get direct exposure and interaction with the decision maker during the sales process, how can you develop a relationship, understand his emotional needs, and get into alignment with what he wants to accomplish? You can’t.
If you cannot get direct exposure and interaction with the decision maker, the salesperson should walk away. Not doing so, sets the salesperson up for investing a lot of time and energy, and not have much to show for it in the end.
To determine who has the authority to make a decision, use the following questions…
- “If we continue to explore working together, what is the process for making a decision and who all will be invovled?”
- “So that I can ensure everyone involved in the decision process gets their questions answered, who are all the people that will be involved in making a decision?”
- “Is there anyone else to whom you’ll be accountable for making this decision?”
It’s very likely answers to these questions will reveal who really has the authority to make the decision.
Is the Revenue you’ll generate from the deal worth your time?
A good salesperson assesses the revenue potential, short term and long term, of any given buyer early in the sales process and has to make a decision about whether it is worth pursuit. You’ll figure this one out if you’ve done a good job of uncovering the budget.
Say your average sale is $5,000 over the first 12 months of a project. Based on conversations with your buyer, you determine first year revenue won’t likely be more than $2,000. However, if you feel there’s more revenue potential in future years, you might determine this to be a qualified buyer. On the contrary, if it appears your initial project will be a one-time event with little to no future revenue potential, you might determine this deal doesn’t deserve the time and energy you’d have to put in to close the sale. You might be better off pursuing another qualified buyer.
What is the buyer’s Timeframe for making a decision?
How frustrating would it be for you to invest hours into a sale only to find out the buyer won’t be making a decision for 6 months? That’s what can happen if you fail to establish timing early in the sales process.
This is not to say you should ignore the buyer and move on to a better qualified prospect. If the sales opportunity meets all the other BARTS criteria, it should go into your lead nurturing process. Remember, only a small fraction of your target market is in the buying mode at any given time.
To determine the buyer’s timeframe, use the following questions…
- “When do you anticipate making a final decision about this?”
- “What is your deadline for implementing this type of solution?”
If you don’t get specific answers to these questions, you’re at risk. Pin down the buyer to get a firm sense for timing. Otherwise, you could get an unpleasant surprise. If you don’t get a specific answer, ask a follow up question like this…
- “We have several projects in the pipeline and if we do business together I want to make sure we meet your timing. When will you want to get this project started?”
Due to the complexity of some products and services, the buying cycle might be months and years in the making. So, don’t give up on an otherwise qualified buyer. Nurture that buyer through the sales process so you can make your numbers today, and make your numbers tomorrow.
Does my Solution add value?
Be true to yourself and your buyer – never ever sell something to a buyer that doesn’t truly add value and/or solve the buyer’s problem. If you are selling security systems but the buyer’s greatest need is improving quality of his manufacturing process, this may not be a qualified buyer. Sure, this buyer may use a security system, but you are doing him an injustice if you try to sell him a product/service that doesn’t truly address his most pressing objectives.
Determine early on if the products and services you offer are what the buyer needs to solve his problem or capitalize on his business opportunity. If it’s a good match, go for it. If not, better to maintain your reputation as a trusted advisor in the marketplace and refer a trusted vendor who sells what the buyer needs, than to sell something that doesn’t really add value.
In the end, if you have a sales opportunity that 1) has an appropriate budget, 2) the buyer has the authority to make the buying decision, 3) the revenue you’ll generate is worth your time and energy, 4) a decision will be made in a timely way, and 5) the solution you are offering adds value, what more could you want? Invest the time and energy with your buyer and close the deal.