Boost Your Close Rate by 50% with AI: Prospect Research Guide
Table Of Contents
- Ideal Customer Profile (ICP)
- Essential Data Points for Prospect Research
- What Tools to Use for Efficient Prospect Research
- How to Leverage AI in Prospect Research
- How to Uncover Buying Signals and Buying Intent
- How to Personalize Strategies Based on Prospect Research
- How to Integrate Prospect Research into Your Sales Process
- Advanced Prospect Research Techniques
- Conclusion
- FAQs
It's 3 AM, and I'm knee-deep in spreadsheets, frantically googling company names, and downing my fifth cup of coffee. No, I'm not pulling an all-nighter for a college exam. I'm a B2B sales rep desperately doing prospect research, trying to find that one prospect that'll save my quarter.
Sound familiar? If you're nodding your head (or crying into your coffee), you're in the right place.
In this guide, I'm going to share everything I've learned about prospect research - from the basics to the advanced prospect research techniques that'll make you feel like a sales superhero. And trust me, if I can figure this out, anyone can!
Ideal Customer Profile (ICP)
Let's start from the very beginning. So, what's an Ideal Customer Profile or ICP? It's basically your dream customer on paper. You know, the one that doesn't make you want to pull your hair out. Defining your ICP is like creating a dating profile for your business. But instead of "long walks on the beach," you're looking for "steady revenue and minimal support tickets."
When I first started out in B2B sales, my ICP was anyone with a credit card. Huuuge mistake. Not all customers are created equal. I've learned this through bitter experience.
So what are the key characteristics you should consider when doing prospect research? Think about company size, industry, and pain points. When considering key prospect characteristics, don't just stick to the basics. What's their tech stack like? Are they actively hiring SDRs? Have they recently secured funding? Are they the type to embrace new solutions or would rather keep sending faxes? These details matter. A lot.
Your ICP should be specific. Really specific. We're talking "uses Salesforce, has a team of 50+ SDRs, and is losing sleep over lead quality" specific.
When we just started LavaReach, I remember spending months chasing a prospect that looked perfect for our solution. Turns out, they were about as ready for change as I am for a morning jog. Which is to say, not at all. Lesson learned.
With a solid ICP, you and your sales team can focus your energy on leads that actually matter. Remember, a well-defined ICP can double or triple your conversion rates. Honestly, the sky is the limit.
Here's a pro tip: Use AI-powered prospect research tools to make your ICP-based prospect research easier and more effective. Trust me, I'm not just saying this because I co-founded an AI research and personalization company. Okay, maybe a little.
But seriously, with the right tools, you can uncover high-intent leads that match your ICP in seconds. Using AI tools for prospect research is kinda like having a superpower, minus the tight spandex suit.
A well-defined ICP can boost your conversion rates by up to 68%. So, take the time to nail down your ICP. Your future self will thank you.
Essential Data Points for Prospect Research
So you're about to reach out to a prospect, and you know their company's recent initiatives, the CEO's favorite charity, and their tech stack better than they do. Sounds like a dream, right? Well, let's make that dream a reality and turn data points into dollar signs!
1. Company information.
First things first, you need to know who you're dealing with. Basic stuff like company size, location, and industry are just the tip of the iceberg. Those are just the basics. Don't stop there.
For instance, look at their organizational structure. Are they centralized or decentralized? This can tell you a lot about their decision-making process. Many sales reps spend months pitching to the wrong department because they don't understand the company's structure. Don't be that guy.
Also, pay attention to recent news and press releases. Has the company launched new products? Expanded into new markets? These are perfect conversation starters. Trust me, prospects love it when you show you've done your homework.
If you're selling to public companies, use AI-powered tools to analyze annual reports and 10-Ks. They have a ton of information about company initiatives and potential pain points. I've seen deals close 40% faster when sales reps come prepared with this kind of intel.
2. Individual prospect details.
Now, onto the actual humans you'll be reaching out to. Job titles are just the beginning. You want to understand their role in the decision-making process. Are they an influencer? A decision-maker? Knowing this can help you tailor your approach.
Look at their career trajectory. Have they recently been promoted? Changed companies? These transitions often signal a willingness to consider new solutions. I once closed a huge deal because, during my prospect research because I noticed that one of the prospects had just moved from a company that used our product. Talk about a warm lead!
Don't ignore their online presence. LinkedIn activities, Twitter posts, even their GitHub contributions if your selling to the IT crowd. I'm not saying stalk them! But a little social media investigation can go a long way. Just remember, there's a fine line between well-informed and creepy. Don't cross it. It's not pretty.
3. Industry and market insights.
Understanding the broader context of your prospect's industry is crucial. What are the current trends? The challenges? The opportunities? This knowledge allows you to position your product as a solution to their specific pain points.
For example, if you're selling to the healthcare industry, you better be up to date on the latest regulations and compliance requirements. One of my friends, once lost a deal because he wasn't aware of a new data privacy law that had just been passed. He learned his lesson. Always stay informed. Since then he signed up for a ton of healthcare industry newsletters.
Use tools that provide real-time industry news and analysis. At LavaReach, we've seen that sales reps who regularly use industry-specific data have a 50% higher success rate in their outreach efforts.
4. Tech stack.
You gotta understanding a prospect's tech stack. It's really a cheat code if you ask me. It tells you what they're using, what they're missing, and where your solution fits in.
Are they using your competitors' products? That's valuable information. Maybe they're unhappy with their current solution, or perhaps they're using multiple tools to accomplish what your product handles all at once.
How often do you find yourself pitching to a company that is using five different tools for tasks your platform could handle seamlessly?
LavaReach has a built-in website technology scanner that can give you a snapshot of your prospect's digital toolkit. We call this feature 'website X-ray', internally.
5. Financial information.
Last but certainly not least, let's talk money. Understanding a prospect's financial situation is crucial for pre-qualifying leads and tailoring your sales pitch.
Look beyond just revenue size. Are they profitable? Growing? Stagnant? Have they recently secured funding? Each of these scenarios requires a different approach.
I once spent months nurturing a lead, only to find out they were in the middle of a cost-cutting initiative. Needless to say, that wasn't the best time to pitch a new solution. Always check for recent financial news, head count growth, and funding rounds before reaching out.
All this research might seem overwhelming, but with the right AI tools like LavaReach, you can automate much of this process.
What Tools to Use for Efficient Prospect Research
Let's kick things off with traditional research methods. You know, the old-school stuff. Cold calling, industry reports, trade shows. Are they outdated? Maybe. But are they still useful? You bet your bottom dollar they are.
I once closed a decent size deal just by chatting with someone at a Toronto's Collision conference food truck line. Who knew small talk over tacos could be so profitable?
Let's face it, traditional methods can be slow. Really slow. Like, watching-paint-dry slow. But that's exactly where online research tools and databases can help your sales team.
These babies can give you a ton of information in seconds. Company details, contact info, firmographics, etc. All at your fingertips.
I remember when I first discovered these research tools. Honestly, it was like going from a bicycle to a sports car.
Social media is also a very powerful and free option. LinkedIn, Twitter, Facebook etc.
I once saw a LinkedIn post from a potential client complaining about a problem LavaReach could solve. Needless to say, that was the easiest sales pitch of my life. If you're doing prospect research daily, I also highly recommend you get LinkedIn Sales Navigator. At ~$100/mo, it's worth every penny.
AI-powered research solutions. This is where things get really interesting. And no, I’m not just hyping this because LavaReach is an AI sales research company. Okay, maybe a tad. But hear me out.
AI can process vast amounts of data in seconds, uncovering valuable insights, that would take humans days or even weeks to find. Ain't nobody got time for that, right? Personally, I'd rather focus on building relationships and trust with new prospects. Not doing manual prospect research, sifting through tons of unstructured data. I've been there, done that. No thanks!
At LavaReach, we've seen sales teams reduce their research time by up to 80% using AI. Imagine being able to identify high-intent prospects, track job changes, and monitor buying signals - all automagically.
I remember the first time I used AI for prospect research. Honestly, it felt like cheating. In a good way. Like using a calculator in a math test.
But here's one thing I always tell our clients: it's not about replacing human intuition. It's about augmenting it. AI can crunch the numbers and spot the patterns, but it's up to sales reps to turn those insights into meaningful connections.
Your goal isn't just to gather information. It's to uncover insights that'll help you connect with prospects on a deeper level. Because at the end of the day, sales is still about human connections. Even if those connections are powered by silicone.
How to Leverage AI in Prospect Research
So what are the benefits of AI in prospect research? Well, first off, it's fast. Like, "blink and you'll miss it" fast. Remember the days when sales reps would spend hours manually combing through data. Now? Gone! AI does it in seconds.
Speed isn't everything though. AI is also incredibly accurate. When implemented right that is. It doesn't get tired, it doesn't get distracted by puppy videos on TikTok, and it certainly doesn't make mistakes because it's thinking about what to have for lunch. Unlike me.
One of the biggest benefits is that AI can uncover patterns and insights that human brains might miss. One of our clients once discovered a huge opportunity because LavaReach spotted a trend in company hiring patterns. That deal allowed the sales rep hit their annual quota 3 months before the end of the year.
So how does exactly AI streamline the prospect research process? Well, it's not just about doing things faster. It's about doing them smarter. AI can automatically categorize prospects. Identify high-intent leads. And even predict which companies are most likely to buy.
I've seen B2B sales teams literally tripling their productivity using AI-powered research. That's not a typo. It's the kind of number that makes sales managers do a happy dance. I've seen it. It's not pretty, but... it's enthusiastic!?
Also, AI can keep your data fresh and up-to-date. No more reaching out to prospects who left the company six months ago. Been there. Done that. Got the embarrassing email replies to prove it.
But here's the million-dollar question: how do you integrate AI tools into your workflow? These days, it's not as scary as it sounds.
Start small. Pick one area of your prospect research process and use AI to automate it. Maybe it's lead scoring, or maybe it's tracking company news. Get comfortable with that, then expand.
The key is to use AI as a complement to your skills, not a replacement. Think of AI as a really smart and fast assistant. It can gather and analyze the data, but you're still the one making the decisions and building relationships with prospects.
The real goal is to free up your sales team to do what they do best: connect with prospects, understand their needs, and close deals. Let AI handle the grunt work, so your sales team can focus on the human touch.
In my experience, sales reps who take advantage of AI see their close rates improve by up to 50%.
How to Uncover Buying Signals and Buying Intent
Identifying high-intent prospects is like trying to find a golden needle in a haystack... while the haystack’s on fire, you’re driving a sports car through it, and Hammond’s in the passenger seat screaming, "Where’s the bloody needle?" Absolute chaos, but when you finally spot it, it’s like hitting the jackpot with a sledgehammer. Love that show!
Here's the thing, high-intent prospects are out there, leaving digital breadcrumbs all over the place. They're visiting your website, downloading whitepapers, and asking questions on forums and social media. The trick is spotting these signals before your competitors do.
But you need the right tools to capture this data. You can try doing it manually but you'll get very frustrated. I've tried doing it manually, I wanted to pull my hair out. When we first implemented intent data into LavaReach platform. We saw a 40% increase in our conversion rates. Not too shabby, right?
Another thing I highly recommend you track is company initiatives and changes. Companies are constantly evolving, and each change is a potential sales opportunity.
Are they expanding into new markets? Launching new products? These are amazing outreach opportunities. With AI you can monitor literally thousands of companies simultaneously, alerting you to relevant changes in real-time.
Here's a big one: monitor funding and M&A activities. When a company gets funding or is involved in M&A, it's like a neon sign saying "We've got money to spend!" I remember when we first started tracking these activities. Our pipeline literally exploded overnight. We saw ~60% increase in qualified leads.
But one thing you need keep in mind though - timing is everything. You gotta to be one of the first to reach out. Don't wait too long or you'll be fighting with every other sales rep who read the press release.
That's why real-time monitoring is crucial. At LavaReach, we've developed AI that can alert you to funding rounds and M&A activities as they happen.
Uncovering buying signals and intent is part art, part science. The data gives the "What", but it's up to sales reps to figure out the "Why" and the "How". That's where they need to rely on their intuition.
How to Personalize Strategies Based on Prospect Research
Gone are the days when crafting "personalized" outreach emails came down to slapping a first name in the subject line and greeting before calling it a day. You gotta use all that juicy prospect research info. Remember those data points we talked about earlier? This is where they come in handy.
Personalization at scale is tough. Very, very tough.
To craft truly personalized outreach emails at scale you do need to use AI. At LavaReach, we've developed tools that can generate personalized messages based on your prospect research while maintaining your human touch.
However, it's not enough to know your prospects pain points, you need to show how your solution is the aspirin to their migraine.
BUT needs change. What a prospect needs today might not be what they need tomorrow. That's why continuous research is crucial. Not only will it help your sales team but also your product team. Think of it like dating. You can't just learn their favorite color once and call it a day. Unless you want to end up single. Or in our case, without a deal.
This is especially true when sales reps go after enterprise clients. These is where sales reps have to build relationships with many many different stakeholders and decision makers in the company. Why? Because decisions aren't made in a vacuum. Unless you're selling vacuums. Then they might be!
I once lost a deal because I focused all my energy on one stakeholder. Turns out, they didn't have the final say. I put all my eggs in one basket. Not fun.
This is why you gotta map out the entire decision-making unit of a company BEFORE fully committing to a prospect. You need to see their org chart. You need to see who influences who, who holds the budget, and who's likely to be your champion.
And you can't be bombarding everyone with the same message. I'm gonna sound like a broken record here, but you absolutely have to tailor your approach to each stakeholder's role and priorities. The CFO cares about different things than the CTO. Unless they're the same person. In which case, good luck. You'll need it!
Remember, personalization isn't just about closing the deal. Personalization is about building relationships with your prospects. Because at the end of the day, people buy from people.
How to Integrate Prospect Research into Your Sales Process
Your CRM should be the single source of truth, not that Excel spreadsheet you've been updating since 2010. I'm looking at you, Dave! Long story. Dave's a great guy.
CRM integration isn't just about connecting systems though. It's about creating a seamless flow of information. Your prospect research should automatically populate your CRM. Manual data entry. Ain't nobody got time for that! If I wanted to spend my days copying and pasting, I'd have become a data entry clerk.
Sales and marketing alignment is your goal. Separately, they're okay. Together? They're unstoppable. One of my friends saw her company increase their conversion rates by ~50% just by getting these two teams to ACTUALLY talk to each other.
So collaboration needs to be baked into all your sales processes including prospect research process. It's not enough to have a monthly meeting where everyone pretends to get along. You need shared goals, shared data, and shared successes.
Marketing knows which content resonates with high-intent prospects. Sales knows which leads are most likely to convert.
Advanced Prospect Research Techniques
When I think advanced prospect research techniques, predictive analytics comes to mind right away. Sounds fancy, right? Like something out of a sci-fi movie. But trust me, it's real. And it's powerful.
You simply use data to predict which prospects are most likely to buy. AI makes this sooo easy these days, I'm honestly amazed. I've seen teams increase their close rates by 35% and more using predictive analytics for prospect research.
But there's always a catch! Predictive analytics is only as good as your data. Garbage in, garbage out.
Account-based intelligence is also another advanced prospect research technique many sales reps swear by. Account-based intelligence is basically about understanding the story behind the data you've gathered about the company. Why is this company expanding? Who's really calling the shots? Things like that.
And finally, one of my all time favorites - competitive intelligence gathering. Or how I like to call it "The spy game of sales reps!" It's about knowing your enemy... I mean, competitor. Same thing, right?
I once closed a deal because I knew our competitor's product roadmap better than they did. How? Let's just say LinkedIn can be a goldmine if you know where to look. And no, I didn't hack anything! I'm not that tech-savvy. Just persistent. And maybe a little obsessed.
You can use AI tools TODAY to monitor competitor activities across multiple channels.
Conclusion
Prospect research isn't just about gathering data. Prospect research is about turning that data into insights, and those insights into client relationships. Because at the end of the day, sales is still about connecting with people.
One thing to keep in mind, the prospect research techniques we've discussed are powerful, but they're not magic wands. They're more like really cool power tools. In the right hands, they can build something amazing. In the wrong hands, well... let's just say I once tried to build a treehouse. The less said about that, the better.
The key is to never stop learning, never stop adapting, and never forget the human element in sales. Use these tools to enhance your skills, not replace them.
Now, if you're ready to take your prospect research to the next level, you gotta check out LavaReach. We've built the world's first Sales Research AI that automates lead generation and gets you hot leads on autopilot. From prospect research to personalized messaging, we've got you covered!
FAQs
How often should I update my prospect research data?
Aim to update your prospect research data at least quarterly. However, for high-priority accounts or rapidly changing industries, monthly updates are recommended. Use AI-powered tools to automate this process, ensuring you always have the most current information to inform your sales strategies.
How can I ensure the accuracy of AI-generated prospect insights?
To ensure accuracy, use reputable AI tools that draw from verified data sources. Cross-reference AI-generated insights with multiple sources when possible. Regularly audit and clean your data. Remember, AI is a tool to augment your research, not replace critical thinking and human verification.
How can I use prospect research to personalize my outreach at scale?
Use AI tools to segment your prospects based on key data points. Create templates that address common pain points or goals for each segment. Use automation to insert personalized details into these templates. Always review and tweak automated messages to ensure they sound natural and relevant.
What should I do if a prospect asks how I obtained their information?
Be honest and transparent. Explain that you use publicly available information and AI-powered tools to identify potential good fits for your product or service. Emphasize that you respect their privacy and only use ethically sourced data. Offer to remove their information if they're not interested.
What are some common pitfalls to avoid in prospect research?
Avoid over-relying on AI without human verification. Don't neglect data privacy laws. Beware of analysis paralysis - set clear research objectives. Don't ignore soft data like company culture. Avoid using outdated information. Clean and update your database regularly. Balance quantity with quality of data.
About Daniel Zhao
Daniel Zhao is a multiple time founder with years of first-hand experience in B2B sales and revenue leadership. He has a consistent track record of helping companies experiment and implement outbound in SaaS and other industries. Throughout his career, Daniel has set up numerous outbound motions for the first time for companies that previously had not found success with sales led customer acquisition.