| With many articles having been written about the | | | | In tough times - the sales and support staff are the |
| cause and course of the recent recession, it is time to | | | | most critical resources in the business. They are the |
| look past the theory and focus on real tools and | | | | ones with whom customers interact to make their |
| strategies used to survive the downturn, and how in | | | | buying decisions and as such as pivotal in retaining |
| many cases businesses used the 'opportunity' to | | | | existing customers. Everything hinges on their |
| strengthen their business for greater success both | | | | performance. |
| now and in the future. | | | | Such areas should only be reduced, redesigned or |
| Turbulent times represent a real opportunity to not only | | | | restructured AFTER the core business strategies |
| improve ones core business but to also improve your | | | | have been determined. In this way, only non-essential |
| competitive position. Naturally, along with strategic | | | | activities are eliminated. |
| opportunities come the inevitable risks, but with a smart | | | | Sales Strategies |
| course of action, proactive businesses have been able | | | | The more effective strategy is to make your sales |
| to optimise the opportunities and minimise the risks. | | | | force more effective. Sadly, many companies |
| The core survival strategy is to: | | | | demotivate their sales forces by withdrawing from |
| - Tightening cost management to improve cash flow | | | | sales motivational events and reducing bonuses for |
| and maintain margins, in spite of revenue downturn | | | | targets exceeded. Such companies are short sighted |
| - Strengthen the core business - get rid of low profit | | | | and fail to appreciate that sales people are the first to |
| lines and refocus on higher profit centers for the longer | | | | feel the brunt of a depressed market and as such |
| term | | | | need more motivation than ever before at such times. |
| - Prepare for change | | | | One of the best sales strategies is to employ business |
| - Identify the right long term investments | | | | intelligence - to ensure that sales efforts are laser |
| When economists predicted that the economy would | | | | targeted to the most profitable targets. This not only |
| continue to decline until at least the middle of 2009, | | | | increases revenues but decreases the total cost of |
| there was little to predict the downturn to be steep, | | | | sale - thereby improving margins. Using a data-driven |
| long and turbulent. Smart companies have the right BI | | | | approach to sales is a sure way to boost the |
| tools to make sure they always know where their | | | | effectiveness of your sales organization, using: |
| businesses are at any time. This includes an objective | | | | Data Driven Sales Operations - Sales cycles always |
| corporate wide assessment of: | | | | lengthen in a downturn, however using data-driven |
| - Product portfolios and development roadmaps | | | | sales strategies results in higher win rates. Combined |
| - Technical infrastructure | | | | with rigorous management processes and disciplines |
| - Operational efficiency | | | | that systematically channel prospects through the |
| - Human capital | | | | channel to closure will outperform any other sales or |
| - Financial liquidity | | | | marketing strategy. |
| - Current customer market economy | | | | Targeted offerings - micro-niche marketing can be |
| As we pull out of the recession and enter the | | | | laser focused down to a market of one single |
| recovery phase, each business will be in a different | | | | customer. By tailoring your offer to individuals based on |
| starting position, will have been affected in different | | | | the details you have of their lifestyle and buying habits |
| ways, and to different degrees, so knowing where | | | | you are more likely to provide them with value they |
| you stand at any time is essential insight. So just what | | | | seek and effect a sale. Focus closely on what your |
| did the winners of the recession do differently? They | | | | market niches are experiencing during these times and |
| carried out a complete critical assessment, then | | | | how your product or service can assist them. |
| deployed the right strategy. In other words, they PLAN | | | | Performance management - even more amazing than |
| to come out on top. | | | | withdrawing sales motivation events, many companies |
| Critical Assessment | | | | are retaining previously set sales targets for their sales |
| There are three critical questions that need to be | | | | teams. This has an immediate demotivating effect, in |
| answered: | | | | spite of any other strategies such as those mentioned |
| - Who will the downturn affect the industry I am in? | | | | above. The most important element to kick off your |
| - What is my current competitive position in the | | | | new sales performance strategies is to maintain |
| market? | | | | motivation in your sales teams. Start by reducing |
| - What resources do I have to draw upon - financial, | | | | targets, and then as the strategies start to show |
| supplier, internal; and how can you best capitalise on | | | | rewards, targets can be reinstated. By this time, the |
| these resources to gain competitive edge over your | | | | sales force is building confidence in the use of business |
| customers? | | | | intelligence and the new micro-marketing approach. |
| If your business has a strong financial position then you | | | | You may also consider rearranging territories to better |
| can take advantage of any strategic and industry | | | | align with the new strategies. This may also reduce air |
| positions in a number of ways. You could invest more | | | | travel costs. As individual sales persons become |
| in marketing to increase customer retention. You could | | | | familiar with using performance dashboards they will |
| adjust pricing to undermine competitor pricing. There | | | | very quickly be able to see what actions produce the |
| are many marketing tactics a business can use to | | | | best results, and your sales efforts will become |
| dominate market niches. You may even consider | | | | optimised. Sales managers will no longer need to |
| M&A strategies with weakening competitors. | | | | waste time on gaining performance updates from |
| If you are in a weaker financial position you can divest | | | | sales reps - they can instead better utilise the time |
| non-core assets and reduce debt as well as taking | | | | talking strategies and helping reps overcome hurdles in |
| aggressive cost reduction measures. Seek | | | | the sales process. |
| partnerships with those whom can provide part of | | | | Support Strategies |
| your core service delivery that is non essential to | | | | Using business intelligence in support can turn this cost |
| maintain your competitiveness. Focus all your | | | | center into a highly effective sales force. With real time |
| investment on your competitive core strengths. There | | | | information and background analytics, support reps can |
| will be a unique set of tactics each business can | | | | engage in event-based marketing every time they |
| deploy in accordance to their own unique business | | | | interact with a customer. |
| situation. | | | | Coming Out on Top |
| Price Reduction Strategies | | | | For those companies that have the capability to think |
| Many businesses make the mistake of aggressive | | | | fast and make evidence-based decisions, the |
| price slashing strategies in such times. Whilst this may | | | | downturn can represent a valuable opportunity to |
| help liquidate surplus stock, it also resets the market | | | | improve their competitive position. During the last |
| expectation as to what price one can pay for certain | | | | recession, many previously top rated companies failed |
| goods and services and forces your competitors to | | | | to survive, and others who were seen as less |
| also lower their prices. Each business must identify the | | | | effective rose to the surface, making enormous gains |
| cost of sale and support for each customer and | | | | once the economy recovered. |
| approach it from a basis of profitability, not just | | | | This is a time not to slow performance but to drive |
| revenue. In many instances, more customers mean | | | | corporate performance using business intelligence. This |
| more support costs - where retaining higher margins | | | | is the lesson and strategy outlined in my recent book |
| may mean fewer sales for the same revenue, but it | | | | 'The Logical Organization'. Now, more than ever is not |
| also reduces support costs. Pricing strategies such as | | | | a time to make emotion driven decisions or rely on |
| price wars generally worsen the market, rather than | | | | filtered memories of 'what happened last time'. This |
| strengthen it. | | | | recession is very much different from the last on |
| Cost Reduction Strategies | | | | many levels and requires a fresh approach. |
| As soon as 'cost reduction' hits the board room table, | | | | Business intelligence is your BEST opportunity for |
| the most commonly attacked areas are those which | | | | developing a successful master action plan to set a |
| are non-customer facing such as finance, information | | | | rigorous program to not only survive, but to succeed |
| technology and human resources. Cut in haste-repent | | | | during this time. BI helps you identify your core |
| at leisure. Across the board cost cutting can be fatal - | | | | business, optimise your marketing, turn customers into |
| often eliminating activities essential to driving sales and | | | | loyal referrers and redesign your business ethos to |
| profits. Most companies can reduce costs from | | | | propel you beyond this period into the future with a |
| 10-30% without impacting essential spending in those | | | | more agile, more capable and more enjoyable |
| areas that actually provide the products and services | | | | business. |
| that customers value. | | | | |