For many businesses, the period of strong growth that has preceded the downturn, meant that sales skills and management did not get the attention that they deserved.
As the economy slows, competition for scarce resources increases and sales are now back on the agenda - the shoe is now firmly on the other foot!
It is worth noting some key points raised by Neil Rackham (of SPIN Selling fame) in his article: "Selling tactics for difficult times"
• Only 50% of sales people have sold in difficult times - if you have a young sales force then this proportion will be much higher.
• In an economic downturn, sales cycles (from start to close) are typically 40% longer
• Many people believe that in tough times, customers buy on price - this is a fallacy as most customers will buy on value, not price
• Research has shown that during difficult times, customers will buy safety i.e.. the offering with the lowest risk. Often the perception is that the lowest risk option is to stay with the "status quo" i.e.. the current product, service and/or provider
• Committees are often involved in making economic decisions in difficult times and group decision making usually favours lower risk
• Buyers also realise that their decisions will come under more scrutiny in tougher economic times.
This means that businesses and sales people will need to adjust their strategies in order to compete effectively and to survive in a depressed economy.
Sales Survivors
Rackham's research indicated that many sales people struggle to adjust to the "new rules" of the downturn (just as many business owners and managers struggle). There is also a group that will adapt and survive (even thrive) in an economic downturn.
In his article, Rackham outlined the key characteristics of "the Strugglers" and "the Survivors" based on research undertaken in previous downturns. This is summarised in the table below.
Interestingly, research has shown that a key factor in the buying decision for customers was the "confidence" of the sales person.
Are your sales people confident when they sell? How can you help them to build confidence in themselves, your pricing and your products and services? Call me to find out how I can help you achieve this quickly - This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Improving your sales force
In a second article, Rackham exposes 5 top tips for building a world class sales force:
• Sales Supervisors are the key to success - lift the level of supervision not the level of sales person. You don't need better sales people - you need better sales supervision.
• Fewer accounts = more sales - Research has shown that dramatic improvements in sales can come from reducing the number of opportunities that a salesperson will focus on by up to 30%. It's the quality not quantity approach!
• Create Value - Your sales people must become "value creators" or "problem solvers" rather than "talking brochures".
• Coaching brings results - ensure that your team has support at all levels from manager to supervisor to sales person. Effective coaching can often provide that external sounding board and third party accountability that can help to improve results.
To get started rate yourself on the following audit. Mark the scale with a cross to denote where you are now and a tick to mark where you want to be in six months.
List three action against the largest gaps and get moving.
If you need some free clarification or assistance give me a call - Ross 0409 459736 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it