THE ABC RULE OF
By Mark McClure
By Mark McClure
A few years back I was asked to consult to a large financial services firm in Atlanta on how to get in the door of decision makers and overcome objections, two major areas that their reps were having trouble with and holding them back from hitting their goals. Mind you this was not just a problem for some of the new brokers, this was an issue for close to 80 percent of the reps, and so I sat down with all of them and did an evaluation.
Sure enough they were all guilty of what I called “The Pack Mentality Syndrome” and if they were to become as successful as they wanted to become individually and as a company, they needed to separate from the pack. Let me define below.
If you are familiar with the 80/20 Rule it states that 80 percent of your revenue or potential revenue will come from only 20 percent of your client base, and conversely that is true, 20 percent of your revenue will be made up by close to 80 percent of your clients. I think we all know this to be true to some extent, that some of our more unprofitable clients take up most of our time (more on that later.)
Well, after explaining this to the reps I told them that we needed to split their prospects into three classes, A,B,C, which are defined in the accompanying chart:
Disproportionate Time Management
Now, taking a look at these classes of prospects, it would seem to make sense that you would devote 100 percent of your
time to prospect A and avoid B and Call together, right? Absolutely! But the problem with 95 percent of the entrepreneurs out
there today (regardless of industry) is that they focus 100 percent of their prospecting time evenly among ALL three classes of prospects.
They are following the “numbers” theory and hoping that if they pass out enough cards or see enough people, they will get business. Yes, in theory that is correct.
So why not devote 100 percent of your time passing out as many business cards as you can, trying to set as many appointments as you can with prospect A? Make sense?
Look at it this way; if you are passing out cards or calling just anyone, who do you think will be the one that will be most receptive and take up most of you time? The one that will get you the most excited?
Prospect C and in some cases B, because they are easier to get through too, have less resistance in the form of receptionists, gatekeepers, etc., and thus will listen more intently. Will they buy? Maybe, but most likely not. Will it be a battle?
Absolutely, and for what? A small portion of business that will give you more head ache than anything else.