Seven Steps to Qualify Your Leads

Harvard Business School refers to the time crunch that small business owners face as “resource poverty.” The solution is to focus only on high-impact activities — specific actions that impact several areas of a business at one time. Qualifying the customer before embarking on an unproductive sales call is a high-impact activity. Here are seven steps you should take when conducting a 15-minute qualifying conversation on the phone.

No. 1: Ascertain how the potential customer came to call you.

It’s important to evaluate your marketing efforts. If you can track your lead sources, you can then allocate additional resources to those activities that generate the highest number of calls.

No. 2: Review the scope

When you conduct your qualifying call, ask your potential customer to explain, as best they can, the scope of work they need completed. If they seek services you don’t offer, refer them to another contractor who can provide those services. If you can assist them with their project, say so. Then ask to go into greater detail about the project. “Do you mind if I ask a few questions to find out more about what you want to do?” When they respond with a “yes,” you become the expert. You are conducting the interview and controlling the flow of conversation.

No. 3: Eliminate the tire kickers

Often remodelers prequalify potential customers who possess no sense of urgency, but who still need assistance planning a project. To many prospects, the project development process is a mystery so offer some helpful tips. Any help you provide at this stage may develop a relationship, so when they are ready to buy you get the call. These leads still have value. They just need to be developed.

No. 4: Determine the budget

There is a cost for your services, and if they can’t afford these services, you don’t want to waste your time going to their house. At this point in the interview, you will want to ask “do you have a budget for this project?” This is a reasonable question to ask any homeowner. Do not feel shy about asking, and don’t be deterred if they will not share this with you. If a homeowner responds by saying they don’t have a budget, or they won’t share it with you, try this: “Let me ask another way. I’ve renovated bathrooms for $20,000, and I’ve done others for over $50,000. Are you closer to $20,000 or to $50,000?”

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