Ensuring strong sales performance in any economic climate
Christine Christian, CEO Dun & Bradstreet reveals the secrets to marketing & sales success in challenging economic times.
When economic conditions get tough and revenues start to decline, sales & marketing departments have traditionally battened down the hatches - employment freezes, training is cut back and layoffs often occur. But is this the right approach - should businesses tighten their belt on sales & marketing when times are lean?
The answer to this question is an emphatic no - cutting back in a challenging economy is the worst thing a business can do. To the contrary, rather than pulling up the oars, a deteriorating economy should be the trigger for businesses to ensure their focus on marketing & sales is unwavering, if not stronger than ever before.
That said the approach must be focused to ensure maximum results are achieved and this means you need to reach out to those targets that are most likely to respond to your offer. There are two key groups that meet these criteria - current accounts and the ones that got away! Selling to people that know your business is always easier than forging new relationships and it is for this very reason that these two targets are likely to yield the best results.
A slow economy provides the perfect opportunity to leverage your customer relationships, remind your clients you were there for them before times got tough, you are there for them now and you'll be there when conditions improve. They'll appreciate the message and the attention, and will likely reward your loyalty with their own.
Now for the ones that got away - former customers and previous prospects who may have chosen an opposing product or service are ripe for the taking. If your competitors have battened down the hatches in an attempt to survive the downturn its highly likely they aren't giving their clients the attention they deserve. Take advantage of the situation, make your competitors clients feel loved. Winning them over could be as simple as a face-to-face visit.
An economic downturn also presents an opportunity to pump up and prepare your sales force so they are ready to hit the streets when conditions turn the corner. It's likely that many companies will be forced to lay off staff, don't fall into this trap - hire the talented people that other businesses are letting go and use the time to train them thoroughly on the products and services you offer. Current and new staff should be included in this process - ensure that everyone understands the business goals, that sales leads are good, that marketing materials are in order and that the ideal customer profile is well and truly understood.
When the economy turns the corner, confidence returns and cash begins to flow again, it is important not to let the diligence and discipline slip away. It is easy to throw money around when it's flowing through the door however industry leaders maintain their focus and use the positive economic conditions as an opportunity to examine every line item in the budget.
Value needs to form the central focus of this exercise - investments that have value to you and your clients should absolutely remain while those that don't need to be let go. Consider the value of your current budgeted activities and determine whether slight tweaks could enhance the impact on your clients and prospects. Only a thorough analysis of your investments will tell you whether the money is well spent.
The bottom line is that the external environment, no matter what state it's in, should not control your destiny - it is important to recognise that every situation presents an opportunity to improve your organisation in some way.
A slow economy is an excellent opportunity to improve the quality and of your sales force, double up your efforts to get people on the street and capitalise on the strengths of your executive team. A solid economy on the other hand is the time when businesses can improve their cost base by thinking outside the box and questioning every investment the business makes.
Top performers do not allow external factors to control their success, instead they use these factors to their advantage.
