What is Prospecting in Sales? [Strategies, Examples, Tips]

It’s a simple definition:

Sales prospecting is the activity of identifying and contacting potential customers to generate new revenue. Sales reps prospect by finding and engaging with targets (qualified leads) to turn them into opportunities and then into customers.

Sales prospecting takes place on a one-to-one basis through outbound activities. For example, when SDRs make cold calls, send emails, or InMails on LinkedIn to people who fit their ICP.

Prospecting is usually a short-term approach that aims at:

Starting a conversation.
Qualifying the prospect in or out.
Positioning your product as a solution to their problem.

In this guide, you’ll learn all about sales prospecting, why it’s essential for B2B companies and what the most effective prospecting strategies are.

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Why is strategic sales prospecting so important?

When you marry sales prospecting with a data-driven strategy, you can become unbeatable in B2B sales.

Strategic prospecting is effective prospecting. Why? Here are some key reasons:

1. Increased efficiency and focus

Strategic sales prospecting helps sales teams prioritise their efforts, ensuring that time and resources are spent on the most promising leads.

By identifying and focusing on high-potential prospects, sales representatives can avoid the inefficiencies associated with chasing unqualified leads.

2. Improved conversion rates

A strategic approach to prospecting involves identifying leads that have a higher likelihood of becoming customers.

This targeted approach improves the chances of conversion.

3. Better customer relationships

Strategic prospecting encourages a deeper understanding of your customer base, leading to more meaningful interactions and stronger relationships.

4. Increased revenue and growth

By systematically identifying and engaging with the right prospects, strategic prospecting can lead to increased sales and revenue generation.

5. Competitive advantage

A strategic approach to prospecting allows sales teams to identify and engage with prospects before their competitors do.

6. Data-driven decisions

Strategic prospecting leverages data and analytics, empowering salespeople to make informed decisions about where to focus their efforts.

7. Scalability and consistency

A strategic approach allows for scalable and repeatable processes that can be applied across an organisation.

What’s the difference between sales prospecting and lead generation?

Much has been written about prospecting vs lead generation - but for a quick overview, see the below infographic 👇

What is a good prospect?

To answer that, let’s get a lot more granular about prospecting. Let’s differentiate between marketing and sales prospects.

Marketing prospects (also called MQLs) are people who have yet to confirm their interest in your product or service.

So for example, they’ve only signed up for your email list.

Sales prospects (also called SQLs) are people who have shown intent to buy and are ready to discuss your solution with sales reps.

They’re deemed to be lower in the sales funnel and are usually considered good prospects for 2 reasons:

They’re actively looking for a solution to a problem.
They’re willing to communicate with salespeople.

At this point, you may be interested in discovering the difference between prospects and leads.

Or, you may want to learn about the lead scoring models that help sales teams identify ideal prospects.

Who does prospecting in sales?

In most SaaS sales teams, prospecting is carried out by Sales Development Reps (SDRs), sometimes called Business Development Reps (BDRs).

SDRs are often the newest members of the sales team. As prospectors, they build their skills and experience before becoming eligible for promotion. The usual roles they progress to are Business Development Managers (BDMs, also called Account Executives or AEs), who conduct product demos, negotiate with prospective clients and close deals.

SDRs typically communicate with hundreds of prospects every day; as a rule, they must evaluate each one’s potential for moving through the sales funnel.

Several methods exist for qualifying leads, but BANT is the most common in B2B:

Budget - does the prospect have the money to buy?
Authority - is the prospect the proper decision-maker?
Need - does the prospect have a problem that your product can solve?
Time - is the prospect looking to purchase quickly?

For SDRs, cold prospecting can be tedious; it requires a lot of multitasking and coming up with creative ideas for outreach. It also means they have to handle objections daily and deal with a huge amount of rejection.

So, to ensure a successful career in sales prospecting, reps need a certain skill set. Watch the video below to learn about the 10 actionable prospecting techniques that Cognism’s sales team couldn’t do without:

How to measure sales prospecting success?

Every organisation will focus on slightly different metrics, but here are the essential ways to measure your sales prospecting efforts:

Activity metrics - for example, dials per day, emails per day, time on the phone.
Result-based metrics - for example, number of Sales Qualified Leads (SQLs) generated, number of AE meetings booked, number of meetings booked that took place.

💡 See Cognism’s blog on the best sales metrics.

Where does prospecting sit in the sales process?

In most B2B companies, prospecting sits at the very start of the sales process.

SDRs sometimes prospect warm leads (people who’ve already engaged with your brand), while at other times, they make contact for the first time, e.g., via cold calls.

The B2B marketing function is also an essential part of the prospecting process. They make content that warms up leads and introduces them to the brand. SDRs often find it easier to start conversations and maintain consistent engagement with warm leads.

What are the different types of sales prospecting?

From a high-level perspective, there are 2 types of sales prospecting for B2B companies:

Inbound prospecting focuses on attracting potential customers through valuable content and marketing efforts. It’s less intrusive than outbound prospecting and often generates higher-quality leads.
Outbound prospecting involves actively reaching out to potential customers. It’s more direct than inbound and allows for targeted engagement, but it may face higher resistance and require more effort to convert leads.

Both strategies are essential for a well-rounded sales approach, as they cater to different stages of the customer journey and market conditions.

But within these 2 prospecting strategies, there are many more activities that sales reps might employ.

Here is a comprehensive list:

What are the types of sales prospecting for SDRs?

1. Cold calling

What it is: Reaching out to potential customers who haven’t shown prior interest via phone calls.
Purpose: To introduce the company and qualify prospects for further sales engagement.
How it works: SDRs use a list of potential leads, often sourced through research, purchased lists or contact databases, and make unsolicited calls to gauge interest.
Challenges: High rejection rate, requires resilience and strong communication skills.

Example: “Hi, this is Joe from ABC Corp. I noticed your company recently expanded into new markets, and I’d love to discuss how our solutions can support your growth.”

2. Cold emailing

What it is: Sending unsolicited, personalised emails to potential customers.
Purpose: To generate interest and set up further conversation.
How it works: SDRs craft personalised cold emails, highlighting the value proposition and relevance to the prospect’s business.
Challenges: Requires careful targeting to avoid being marked as spam; compliance with email regulations is essential.

Example: “Hi Alice, I saw your recent post about improving customer retention. Our tool has helped companies like yours increase retention by 20%. Can we discuss how it might help you?”

3. Social selling

What it is: Using social media platforms like LinkedIn to identify and engage with potential leads.
Purpose: To build relationships and establish credibility in a non-intrusive manner.
How it works: SDRs connect with prospects, share valuable content, and engage in relevant discussions.
Challenges: Requires a thoughtful approach to avoid coming across as overly salesy.

Example: Connecting with a prospect on LinkedIn and sharing a relevant article about industry trends, followed by a personalised message discussing potential solutions.

4. Networking

What it is: Attending industry events, trade shows and expos to meet potential customers.
Purpose: To establish connections and build relationships in person.
How it works: SDRs attend events to interact with potential leads and exchange contact information for follow-up.
Challenges: Requires good interpersonal skills and the ability to follow up effectively.

Example: Meeting a potential lead at a conference and exchanging business cards, then following up with a personalised email to schedule a meeting.

5. Referrals

What it is: Leveraging existing relationships to gain introductions to new potential leads.
Purpose: To tap into trusted networks and get warmer leads with higher conversion potential.
How it works: SDRs ask satisfied customers or business contacts to recommend new prospects.
Challenges: Requires strong relationships with existing clients or partners willing to make referrals.

Example: Asking a happy customer, “Liam, do you know anyone else who might benefit from our services? We’d love to extend our solutions to more companies like yours.”

6. Warm calling

What it is: Calling potential customers who have shown some level of prior interest or engagement.
Purpose: To further qualify and convert engaged leads into opportunities.
How it works: SDRs follow up on inbound leads, such as those who filled out a form or downloaded content.
Challenges: Requires timely follow-up to maintain interest and relevance.

Example: “Hi Daisy, I saw you downloaded our whitepaper on data security. I’d love to discuss how our solutions can address your company’s specific needs.”

7. Direct mail

What it is: Sending physical marketing materials to potential customers.
Purpose: To capture attention and create a memorable touchpoint.
How it works: SDRs send personalised packages, brochures, or letters to target prospects.
Challenges: Can be costly and less immediate compared to digital methods, but can make you stand out.

Example: Sending a customised package with a handwritten note and a branded gift to a key decision-maker.

8. Content-based prospecting

What it is: Using valuable content to attract and engage potential leads.
Purpose: To provide insights and build relationships through relevant information.
How it works: SDRs share blog posts, whitepapers, and case studies to generate interest and start conversations.
Challenges: Requires ongoing content creation and distribution.

Example: Sharing a case study on social media with a note like, “This case study highlights how we helped a similar company achieve significant savings. Would you be interested in discussing?”

9. Event-based prospecting

What it is: Hosting or attending events to meet and engage with potential leads.
Purpose: To connect with prospects in a more personal and engaging environment.
How it works: SDRs invite prospects to webinars, workshops, or industry events, and follow up post-event.
Challenges: Requires event planning and coordination, as well as effective post-event follow-up.

Example: Inviting a prospect to a webinar and sending a follow-up email discussing how the content could benefit their business.

10. Partner and channel prospecting

What it is: Collaborating with partners or resellers to identify and engage potential customers.
Purpose: To leverage partner networks and gain access to new leads.
How it works: SDRs work with partners to identify mutual target customers and create joint outreach strategies.
Challenges: Requires building strong partnerships and aligning goals.

Example: Working with a technology partner to co-host a webinar, then sharing leads generated from the event.

11. Account-based prospecting

What it is: Targeting specific companies with personalised outreach (also called account-based marketing).
Purpose: To engage high-value accounts with tailored solutions.
How it works: SDRs conduct detailed research on target accounts and create customised pitches.
Challenges: Requires significant research and a personalised approach; ABM often has longer sales cycles.

Example: Researching an enterprise company’s pain points, then sending them a customised proposal that addresses their specific needs.

12. Community engagement

What it is: Participating in online forums and industry groups to connect with potential leads.
Purpose: To build relationships and establish authority within relevant communities.
How it works: SDRs contribute to discussions and offer valuable insights in industry-specific online groups.
Challenges: Requires consistent participation and genuine engagement.

Example: Participating in a LinkedIn group discussion and offering to share a relevant resource or case study.

What is an effective sales prospecting plan?

Whether you’re creating a new plan or your current strategy needs updating, here are 10 techniques for creating a successful prospecting process 👇

1. Define your ideal customer profile (ICP)

You may be surprised how many salespeople don’t create a profile of their ideal target audience. And yet...

Your ICP (also called a buyer persona) informs whether the person you’re trying to reach is likely to buy your product or not!

Yes folks, it’s that essential!

So, how do you create an ICP?

Start by defining an ideal customer based on their location, company size, and budget. Once you learn more about your prospects, refine the profile every quarter.

Once you know who fits your total addressable market, it will be easy to focus your prospecting techniques on the right targets; this will save you time and money. Targeted ICP usually means better-qualified sales leads and higher conversion rates.

2. Do your research

Finding out as much as you can about your prospects before you make contact is a crucial step in your prospecting strategy.

The most important part of your research is to source accurate contact data (B2B emails and cell phone numbers lists) to connect with decision-makers in your target organisations.

💡 Did you know that Cognism supplies compliant B2B data, including B2B emails and phone-verified mobile numbers? Our data makes prospecting easy and eliminates the risks involved in using non-compliant data.

Take a look at some of the other features we offer:

Firmographic data that lets you map out a company’s org structure and identify the decision-makers you need to speak to.
Technographic data that helps you understand the tech stacks your buyers rely on (for example, if they use your competitors or tech your product integrates with).
Sales triggers (such as new funding or hiring announcements) that give you the signal to reach out at the right time.
Intent data that lets you target key decision-makers when they’re ready to buy.

3. Understand the company’s internal structure

This is one of the key B2B prospecting tactics that’s often overlooked.

To increase your chances of closing the deal, you have to reach out to people in different layers of a company. For that reason, it’s useful to understand who is who and who reports to whom.

This strategy - also called multithreading in sales - works like this:

Start by prospecting to juniors and middle management; speaking to them will help you better understand the company’s pain points.
Then work your way upwards; use what you’ve learned to tailor your sales pitch as you speak to decision-makers at the top of the company’s ladder.

This prospecting tactic is used in enterprise selling but can also work when prospecting to SMBs.

4. Define your goals before reaching out

You need a clear sales goal before you start prospecting.

The goal doesn’t always have to be closing a deal; it can be booking a meeting or scheduling a sales demo.

For example:

If you’re reaching out to a cold prospect (someone who has never heard of your company), your aim may be to build a relationship with them. Potential customers want to be sure that the company they’re doing business with is trustworthy. They tend to trust organisations they’ve established good relationships with.

5. Find out prospects’ pain points

During a discovery call, it’s vital to ask the right questions about the prospect’s needs. Focus on learning what they’re struggling with and what’s going well for them.

When calling a business prospect, don’t try to reel off everything you can about your product. Instead, listen actively to their answers and connect the dots to position your product as the solution.

Thanks to sales prospecting methods like this, you can highlight the benefits of your product rather than its generic features without sounding too pushy.

6. Take advantage of sales triggers

Sales triggers are events that create an opening for contact with prospects. They could be:

A prospect’s promotion to a new role.
A company receiving a new round of funding.
One company merging with another.

The trick is to identify them! But once you do, you can better engage prospects and ensure higher conversion rates down the funnel.

So, how to prospect using sales triggers?

💡 You can track them manually, but it’s very time-consuming! It’s better to use technology to do it for you. Our flagship tool, Cognism Prospector, has many event-based triggers built into its platform.

7. Build your personal brand

This is a great creative idea!

Think about it:

Your potential buyers visit all types of social media channels; if you’re not present on them, you’re losing out. As many as 82% of customers say they look up vendors on lead sources like LinkedIn before even replying to sales outreach.

What are the best ways of building a personal brand?

Start by creating a social media profile and engaging with your connections or followers.
Share valuable content with them and increase your brand awareness.
Over time, people will start to trust your expertise and become eager to hear your recommendations.

8. Get support from all departments

When prospecting to large organisations, you’ll need to get a lot more strategic.

You may need to speak to different people in different departments, e.g. RevOps, sales, and legal. You have to get buy-in from all of them before you demonstrate your product to the ultimate decision-maker.

Use what you discover during your research phase to develop personalised outreach for each team.

By all means, use cold calling scripts and email templates but don’t stick to them rigidly. Tailor your approach every time so that it’s relevant to the people you’re talking to.

9. Be active

Not every conversation with your prospects will go your way. According to Cognism’s State of Cold Calling report, it takes 3 attempts to connect with a prospect.

That’s why you should have as many conversations as possible. As we mentioned earlier, multithreading is the best sales strategy. If you’ve got top-quality business data at your disposal (including accurate direct dials and email addresses), there’s no shortage of prospects you can contact.

10. Evaluate your results

This is a crucial step in the sales prospecting process. Why?

Because it tells you which tactics yield the best results. Then, you can focus on the ones that are most profitable and also find areas for improvement.

Analysing results helps you understand what makes prospects convert. You can also evaluate every interaction you have with prospective customers. What went right and what went wrong? Use that info to improve your entire sales process.

What are examples of sales prospecting?

Here are the common ways in which SDRs reach out to new prospects:

1. On the phone

Don’t listen to anyone who says cold calling doesn’t work anymore. It’s still a fast and effective sales prospecting technique. As many as 7 out of 10 buyers accept cold calls! So it’s a huge opportunity for your business if done right.

With the right skills and direct phone numbers, an SDR can start a conversation with a prospect, link their product to the prospect’s pain point, and book meetings. Our customers use Cognism’s Diamond Data® to increase connect rates and enrich missing data points from inbound leads.

Cold calling has an advantage over email - you get to show more of “the human touch”. It’s easier to have a meaningful conversation over the phone (rather than delivering a sales pitch). You ask questions, listen to the answers, and follow up.

Visit Cognism’s SDR Zone to learn more about this prospecting technique 👇

2. Via email

Sending sales emails is fast and one of the most cost-effective prospecting ideas.

Once you have an email template that works, you can prospect at scale. Emails can also be good precursors to phone calls; they add a layer of personalisation.

💡 A useful email prospecting idea is to create email sequences that run your prospect through your product’s benefits rather than its features. Use software like Cognism Prospector to set up sequences and monitor responses on the back end.

3. On social channels

In B2B, all your leads are on LinkedIn. It’s easy to fire off direct messages on LinkedIn to try and make a connection, although it can be hard to rise above the noise.

Many SDRs find success with LinkedIn messaging templates or by recording short videos for their prospects, which they send through LinkedIn.

Incorporating video prospecting into your strategy allows you to inject a bit of personality into the process.

💡 If you prospect on LinkedIn, use the Cognism Chrome Extension to export your ICPs’ contact profiles, enriched with accurate emails and phone numbers, to your CRM or sales engagement tool.

Top tips for better sales prospecting

Even if you use the best prospecting techniques and strategies, you may find the process challenging. Some of the biggest prospecting issues sales reps face are lack of time, connecting with the wrong people, and not conducting enough research to personalise outreach.

Here are some of the best practices in sales prospecting for boosting your success rate:

1. Start small

Many sales professionals start with a large list of prospects, then narrow it down to a small list of actual buyers.

But one of the best sales prospecting tips you’ll ever hear is to start with smaller lists of better-qualified prospects. Armed with accurate B2B data, you can create more effective lists of potential buyers.

Here’s a question for you: which one of these would be better for hitting your sales goals?

A list of 1,000 prospects that generates only 30 buyers, or a list of 300 prospects that generates 200 buyers?

2. Follow up with relevant content

Not all sales deals go through, and if yours are slipping, it could be due to the content you’re sending.

Sales prospecting best practice is to tailor business proposals to the recipient. This means addressing your customers’ pain points in your intro to hook them in.

💡 You can also create a prospecting cadence to maximise engagement and hit your targets faster.

3. Know when to stop pursuing prospects

This might not sound like the best sales prospecting tip at first. Some sales reps still consider disqualifying prospects a backwards step.

But it is worth considering. If you notice a prospect isn’t a good fit, you’ll be able to focus your attention on opportunities that have better conversion potential.

Prospecting also means setting criteria for not pursuing a lead. It’s a win-win situation for everyone involved - you want to make sure all your customers are happy customers.

4. Update your ICP every quarter

Sometimes, sales prospecting doesn’t work because you haven’t got an updated ideal customer profile.

For example, one year you may identify SMBs as your audience of buyers. However, with time, it transpires that solopreneurs bring more value to your business.

💡 The best way to improve prospecting is to collect and analyse qualitative and quantitative data. For example, you could calculate customer lifetime value or speak to the customer support team. They know exactly who is purchasing and which are the most loyal customers to your product or service.

5. Use a sales prospecting tool

Technology is your route to making prospecting easier, and Cognism is one of the best!

Here’s what we provide:

A global database of leads, making us a great option for sales teams prospecting into EMEA, NAM and APAC.
Human-verified mobile numbers, meaning that you can contact company decision-makers directly.
Data that complies with privacy regulations such as the GDPR and CCPA.
Native integrations for your favourite tools, including Salesforce, HubSpot, and Outreach.

Find out more today - click 👇 to schedule your demo.