6 Critical Findings for Growing Sales During a Recession
Does your organization see the recession as a sales problem or a strategic business opportunity?
Josh Gordon, a well-known sales coach and author, posed this essential question to a group of sales professionals, and his findings are available in a new white paper that is free with registration.
Here is a summary of what he has to say:
1. The most effective sales practices in a recession are actually counterintuitive to many of the usual recommended strategies. Instead of chasing after new categories of customers, stay focused on your core customers and provide them additional products and services. Most companies understand that it costs less to sell to an existing customer than to acquire a new one. By adopting this sales strategy of focusing on your core business, you may actually improve sales.
2. As a result of the recession, 26% of sales organizations are now working more closely with their marketing departments and the focus of the marketing department shifts. In a recession, marketing should shift from branding activity to lead generation. Sales people need to offer a customer or prospect information that will help them justify the purchase; so marketing needs to develop case studies, online models, and testimonials. Gordon asserts “that recessions provide a strategic window through which competitors can surpass or fall behind one another at speeds double those of normal times.” A surprising fact given that most sales organizations are focused on maintenance rather than growth during a recession.
3. The the two most frequently used strategies for keeping customers loyal during a recession are to seek more customer contact and improve customer service. If the customer can view you as a resource to help them do their job better, then you will always be viewed as a partner rather than a salesperson. “In a recession, it is not the volume of contact you have with a customer that makes the difference. It is having the right approach, products, and solutions.”
4. As a result of the recession, 27% of sales staffs have created documentation explaining their competitive value proposition which means that three out of four sales people DO NOT carry documentation that explains their value proposition as a result of a recession. This is unbelievable to me given that the goal in sales is to convince the prospect that you understand their challenges and goals and you are the best person/company to help them be successful.
5. Recessions result in the customer taking longer to make buying decisions. This is something we addressed in November as part of getting back to basics. There may be more people involved in the process, there may be cash flow issues to consider, and you have to overcome a customer’s fear of moving forward in a recession. The truth is “that companies that invest during a recession can gain tremendous advantage over their competition.” These sales pros agree that the salesperson’s role is to help the customer create their own unique plan for success.
6. Using social media for prospecting is the top choice among use of new media by sales teams in response to the recession. The collective wisdom here is that “Salespeople need to earn their client’s respect beyond their sales function by offering a relationship of value. Building a Facebook or LinkedIn profile that demonstrates this value and documents it with testimonials is a first step.” Think of online social networking exactly as you think of physical networking at conferences or events. It’s simply a new tool.
Gordon concludes that whether it’s intentional or not, all companies have a defined sales strategy for challenging times. Whether it is strategically crafted or in operation by default, a process is in place that will determine your company’s success or failure. Download the report at The Customer Collective and use the findings to create your sales strategy for this recession so that you not only maintain or even increase your sales volume, but exit this recession in a stronger relationship with your core customers.
Posted in: Sales |
