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Selling in Tough Times
For almost a decade we have enjoyed a healthy economy in the UK. In this benign trading environment many organisations concentrated their energy on top-line growth, confident that bottom-line results would follow. Management set ambitious goals for the new fiscal year accordingly. But now that optimism appears to be fading fast as companies struggle to achieve earnings.
The CBI recently reported the biggest drop in business confidence amongst manufacturers since 1999. For some time now the strong pound has been eroding international competitiveness. This year high oil prices and the fall out amongst technology stocks have added to the pressure, leading to a decline in company profitability.
It remains to be seen whether British industry is heading for recession, as some commentators have suggested. What is certain, though, is that this very different commercial landscape presents a new challenge. Now that the economic outlook is much less certain how do we avoid falling prey to corporate cut-backs? Until the turnaround comes we face a real test of true salesmanship. In key sales opportunities, unless we are positioned with the right person and can communicate the value we are providing along with return on investment, we too risk becoming victims of the downturn.
Tough times demand tough action and companies have been swift to react. Already we are seeing high impact measures to control costs, as projects are put on hold and signing limits reduced. As companies downsize people are either leaving or taking on new roles. But by far the most significant personnel change is that the 'economic buying influence' - the one person who gives final approval to buy and has budgetary responsibility -- is moving up in the organisation.
If sales people are not to become blind-sided they need to keep their finger on the pulse. It is imperative they make calls at the appropriate level, deal with the right decision-makers and cover all the bases within the account.
This in itself can be a problem for some organisations. In many cases sales people do not actually try to make contact with the 'economic buying influence'. Often they cannot identify them, or are blocked from doing so. But nine times out of ten the reason is fear - they put these managers on a pedestal and simply do not know how to talk to them.
For their part the 'economic buying influences' invariably focus on issues not products. They have one prime concern: the bottom line and the impact your company has on their organisation. Once sales people understand this and the 'key performance indicators' (or driving metrics) then they can easily communicate the right messages to them.
All these issues are addressed within the framework of a strategic sales process, which develops an approach to leverage your strengths and minimise your weaknesses. Organisations are able to objectively analyse each business opportunity, identify the relevant contacts and what drives them to make decisions. Once this information is apparent it is a simpler task to put across the appropriate points to the 'economic buying influence' and to demonstrate how you can affect their critical business parameters. A transparent process also facilitates alternative solutions such as making it a personal win for someone to introduce us to the 'economic buying influence' or getting advice from a coach.
That being said, it may not always be appropriate for the sales person to have these discussions. For example, if the 'economic buying influence' in a FTSE 100 company is very senior, is your sales person the best person to talk to him or her? Organisations must recognise this and be willing to invest executive time accordingly. The sales process assists in allocating company resources by highlighting gaps in the skill-set needed to win specific situations. And by eliminating the element of guesswork, it also makes it easier to provide investors with the accurate business forecasts they seek.
The latest surveys suggest the US economy is still on a downward trend. If the UK follows suit, then management's immediate goals are to ensure:
* Sales people call on the right decision-makers.
* Sales leaders have visibility to large account activities.
* Value propositions are tailored to economic buyers.
* Internal resources are deployed at the right time and place.
* Business forecasts are accurate.
Now more than ever it's important to get closer to your customers, to stay front-side of their planned changes and avoid becoming part of a cost-cutting exercise you have no opportunity to defend or input alternative strategies to. Together these best practices will ensure you give yourself the best chance of success and continue to win business in the toughest of times.
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