www.kickstartall.com
Maintaining Sales Momentum in a Recession — or Whatever This
Is
by
Mary Sullivan
Although economic reports continue to be gloomy, if you have been
around through several business cycles, you know that this, too, will
pass. In the meantime, maintaining your revenue stream in an economic
downturn calls for a shift in marketing and sales strategies.
No doubt about it, business is feeling the effects of the current economy.
A few feel only the pain of unavailability of credit. But
the majority of businesses are experiencing a slowdown in
sales, too. Customers are cutting budgets and focusing on
cost savings, and buying patterns are changing.
Your sales cycle is lengthening and customer projects are suddenly on
the back burner. How can you keep up your sales momentum?
Sharpen your selling strategies!
Narrow your target markets – A salesperson's instinct
is to go after any prospect that is breathing when sales
are tough, but this is not the time to broaden your target
market. If you have been targeting segments, stick with it,
and take a laser focus.
- B2B companies should identify recession-resistant industries that
can use their products or services. (Healthcare and energy continue
to do well at this writing.)
- Identify the best-performing companies within the sectors you target.
- In consumer markets, focus on demographic groups that are feeling
the least pain.
Rethink pricing – Yikes, don’t cut prices just to
undercut the competition unless you know that your margins
will still be better than theirs. Go for profitability. More revenue
at the expense of profitability is a dangerous move.
- Update pricing models. If you have been selling bundled products,
consider un-bundling and offering products a la carte. A smaller
unit sale may drive up transaction volume which is better
than no sale at all.
- Experiment. Test pricing with limited-time offers and see what motivates
buyers.
- Take calculated risks. Be cautious with promotional pricing that
produces a short-term spike in sales. You may accelerate
purchase decisions, but the spike
may be followed by an artificial sales slump when buyers'
purses are empty.
- Consider try-and-buy offers. Give customers a taste of your product
and, assuming your product is irresistible, you only defer revenue
briefly.
Fine tune messaging – In any economy, your messages need
to be customer-focused, as opposed to product-focused. Address
prospects' pain points. In a down economy, customers' needs
and concerns change, so adjust your messaging accordingly.
- More than ever, it is time to demonstrate value and return on investment.
- Show customers that what you offer extends their resources and makes
their employees more productive.
- If your product is exceptionally easy to use, demonstrate how that
translates into saved time.
- Decision-makers may be more wary about their jobs now, so show them
that buying from you is a safe, reasoned decision.
Engage customers – Focus your marketing on "conversations"
with customers. The days of one-way marketing are over. Customers
want to talk with you on their terms, so narrow the gap between
you and them. Make it personal. Be accessible.
- Nurture prospects until they are ready to buy.
- Encourage customers to be part of the conversation by building online
communities that provide value to them while keeping you front-of-mind.
- Stay close to existing customers and maintain the relationships.
Consider customer appreciation events.
Focus on existing customers – It is more important than
ever to nurture your customer base. They are more likely to buy from
a trusted existing vendor if their customer experience has been acceptable.
And, we all know, establishing new customers is a lot more costly than
selling to existing customers.
- Find other departments or locations in your existing customers' businesses
where your current product or a new product offers business benefits.
- Contact previous years' customers and see how they might benefit
from buying an add-on to last year's purchase. They may
not be able to afford your latest product, but can gain
value from enhancing what they currently have.
Consider using more than one of the above strategies. And remember
that when budgets are pinched in uncertain economic times
like these, you will still need to demonstrate hard-dollar ROI.
About the Author
Mary Sullivan is a co-founder of KickStart Alliance. She is
a 20+ year veteran of technology sales and marketing, with experience
in both product marketing and outbound marketing, as well as in sales.
She can help you segment your market, tailor your positioning and
messaging, create effective sales tools, and build online communities
that engage your customers. Contact Mary for
more information on how to maintain and even accelerate your marketing
and sales momentum.
May 2008