Uncovering Your "Best-odds" SMB Prospects

By Kendra Lee, President, KLA Group

As a seller in the SMB market space, you want to target groups of companies where you have the best opportunity to get business in the door. You cannot afford to waste time pursuing all the companies in your territory. Rather, you want to identify the groups of companies that will require the least amount of times and money to get the highest return for your lead generation efforts. Those are called your "best odds" target markets.

It is just as important to understand where you do not have a good market fit as it is to understand where you do have a good fit. Sellers often neglect to define their "best-odds" opportunities, costing them valuable time in their sales process. Knowing your "best-odds" characteristics makes it simple to target only those companies you believe need your offerings and to quality leads as they come in the door.

Examples of "best-odds" target market characteristic might include:

• Year to year revenue growth, i.e. 11-17%
• Specific annual company revenue attainment, i.e. $300-750M
• Industry
• Number of employees
• Location of the company
• Type of supply or distribution channel
• Attitude or culture of the organization
• IT install base - hardware, software or services
• Competitive alignment
• Solution alignment

Based on the "best-odds" characteristic, you can determine where to find the companies that match what you are looking for. Since a contact list determines 40% of a seller's success, it is important to have a good list. Very often companies have prospect lists that marketing has purchased for its marketing campaigns. If you have a marketing department, make it your first stop for a good list. If not, use Google, Hoovers, LinkedIn or other on-line tools to build a list based on your criteria.

Some alternative ways to develop good lists:

• Pick-up business cards when you attend an event
• Call an association aligned with your target market and purchase their list - or join and gain access to member names for free
• Research industry articles online for possible contact names
• Explore competitors' websites for their customers' names
• Watch what companies your customer contacts move to when they take new jobs
• Analyze job sites such as Monster.com for openings of positions you sell to, or in the department you sell to, such as IT

Once you have an initial list you can further refine your "best-odds" target market to identify top accounts to target within the segment based on characteristics such as:

• A specific business initiative
• Supplier diversity objectives
• Cultural fit with your company
• Size of the organization
• Propensity to purchase services such as your own, or to use outside providers

Kendra Lee is author of "Selling Against the Goal" and president of KLA Group. Specializing in the IT industry, KLA Group helps companies rapidly penetrate new markets, break into new accounts and shorten time to revenue with new products in the Small & Medium Business (SMB) segment. Ms. Lee is a frequent speaker at national sales meetings and association events. For more information, contact the company at +1 303.741.6636 or info@klagroup.com or visit www.klagroup.com.

KLA publishes an industry-leading online newsletter. To subscribe and get a free Quota Gap Calculator ($18.95 value) visit www.klagroup.com. For information on sales training, call 303-741-6636.