What To Do When a Prospect Says 'No'

Monday, October 03, 2011



In the ad industry, some agencies live and die by the RFP.

A business development team sifts through a stack of under-review accounts to determine which opportunity to pursue.

In 2004, I was baptized into this cyclical process in my role as an account team leader at a niche ad agency in Southern California.
Our staff was small, our capacity was limited.

We won some accounts; we lost others.

The agency's managing partner had a different outlook on our business development strategy than I.

He believed if a competing agency was awarded an account -- even if our firm voluntarily passed on it -- it was a loss. Sure, we didn't pursue it, but we weren't seeing new revenue; our competitor was.

How to handle small business rejection
As a small business, leads and introductions are inherent to your business.

Personally, I've received referrals from close friends who are confident I'm the best marketing consultant for their friends.

And while flattering, this isn't always the case.

After an email thread and a few phone calls, some prospects have found my rate to be too high. For some, there simply wasn't a professional chemistry. And for others, it turns out, they weren't a serious shopper; just testing the waters.

But that's okay. Because for every prospect that doesn't convert means I'm more accurately defining my core client.

My personal capacity is very limited and I'm forced to be highly selective about the clients I work with. So I don't consider once-prospects a loss; it's a learning opportunity.

But it's that capacity ceiling and forced focus that ultimately yields fruitful partnerships. 

What to learn from prospect rejection
As smart small business owners, we force ourselves to reflect after a prospect loss. We reflect so we can learn. We ask ourselves:
  • How could I have better assessed my prospect's needs? When you're soliciting prospects, you might find yourself in a rut. It's good to have a well-versed elevator pitch, but not if it means sacrificing unique solutions. So ask yourself, was I phoning it in and not really listening to what really drove my prospect? Was I providing a solution to a problem they didn't have?

  • Did I stick to my guns? This may be a new business opportunity, but it may not be within your core competencies. Or maybe the prospect wasn't comfortable with your rate. So did you stick to your value or did you undercut yourself, soon to resent yourself and your new client? Remember what makes you unique and leverage that differentiation.

  • Did I define who I am? This goes back to your elevator pitch. Are you consistently describing who you are and what you do, or does your self description change like the wind. I work with small businesses to create strategic marketing solutions. And my book was written specifically for small businesses seeking effective marketing strategies. When I'm speaking with prospects, they understand that because I've presented it clearly and consistently.

  • Am I moving on? So a prospect got away. You can either choose to stew on why it didn't work out, or you can conduct a personal post-mortem (asking the questions above), determine how you can improve the next time, and take your energy to move forward with confidence.
How do you handle business development rejection? Do you have any tips to add?

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