Marketing
When You Must Have Sales - NOW!by Mr. Rick Wemmers
The current state of the US economy has certainly placed new pressures on companies to keep sales revenues at an acceptable level. As previous recessions have shown, when the economy goes south, most companies retreat to their fox holes and protect cash positions.
Having worked with top executives in 50 different industries, through 2 previous recessions, I have seen what works and what does not work, when it comes to prying dollars from customers and prospects in poor economic times. I can tell you, diving for a fox hole isn’t the answer to improving sales revenues.
What surprises me is that few companies seem to learn important lessons from previous business history. Yes, the current downturn has special features, e.g. the war, but many of the basic sales lessons apply that were made abundantly clear by previous recessions. (We’ve had 11 since 1945!)
Here’s some counsel I give clients who want, must have, more sales now verses later. Yes, some of these may not fit your business perfectly but look closely at the principle behind each tip.
Tip #1 - Focus on best customers. Those you have sold to before, like you. If anybody is going to be willing to part with “precious” cash in these times, they are. Focus your selling efforts to ferret out any and all possibilities to keep these people supplied. Be creative in your selling propositions. Remember it takes 5x more effort and money to sell a new prospect than an existing customer.
Tip # 2 – Leverage your customers. Meet and ask customers to help you capture new prospects. Your customers probably will be open to helping you remain a strong supplier, even grow. Share your prospect list where you feel their testimonials or influence might help you overcome a competitor’s sales position. Ask them to make personal contact, share their praises for your company, product and/or service. Ask customers if they know of others who might be interested in your company’s offerings.
Some businesses feel this is a sign of weakness. I say, use the “underdog” emotion.
Tip # 3 – Concentrate your sales efforts on “real” prospects. Over the next four weeks, guide your sales people to listen and ask those probing questions which will help evaluate whether the prospect/customer is really ready to buy or “just looking”. Do they have authority to buy now? Has the budget been approved? Is their inventory low on what you sell? What has been their purchase pattern in the past? What is their current financial condition? If they don’t answer your questions positively, get up and leave. When you need sales revenues NOW, don’t waste time on those who are just not ready or can’t buy now.
Tip # 4 – Brainstorm with ALL your employees. Many companies fail to recognize and utilize the power their total work force can provide to increase sales. Hold brainstorming meetings among select groups and seek their ideas and advice on how the company can better sell. IF conducted properly, you will be surprised with the energy and help that comes from these meetings. Afraid to tell your work force you are in real need? Don’t be! They probably sense it already and will be angry if you start cutting people without at least asking for their ideas and help. Does the word “airlines” ring a bell here?
Tip # 5 - Focus on your unique selling proposition. I mean your USP as it is perceived by buyers, not you. Ask yourself, if I had to choose buying the product from my company verses another, what reasons must I have to justify parting with precious cash? Wipe away all those self-serving platitudes. Look critically at your company, your product and how you deliver it verses competitors. What current customer “pain” do you address and solve? Do you know how your customers describe your product when you aren’t around? Arriving at a USP from a buyer’s point of view is a hard question to answer but the correct answer will pay great dividends! Don’t be afraid to ask for outside help here.
Tip # 6 - Look for partnerships, alliances. 80% of CEOs interviewed late last year said they looked to forming some sort of strategic alliance to help their company grow. In tough times look at other companies who are contacting, serving your customers/prospects and explore scenarios for economies of scale for sales efforts. Could your sales force sell or qualify leads for an allied product? Could it work in reverse? Would it be mutually beneficial to swap customer lists? Could joint advertising be cost-effective for both? Make sure the benefits and responsibilities are perfectly clear with your “partner”. This isn’t as easy to define as it sounds but it is critical if the partnership is to work. Sometimes an outsider can bring critical objectivity.
So, you ask, if these tips are so good, how come more companies aren’t using them? Good question. Many companies know of these tips and sales tools but fail to act because:
a. Fear of change –“If we stop calling on new prospects we might miss an order possibility.” “We’ve always done it this way.” “How can we accommodate sales force compensation if we dramatically change our selling plan?” “We don’t have time to experiment. Our day is filled ‘crises’.” The “old” way isn’t working if you’ve admitted your need more sales NOW!
b. Job insecurity issues block forward motion. Many top executives see the need for change but can’t put the company in a “flying squad” mode for improvement. Territorial imperatives appear insurmountable. Personal insecurities cloud vision. Outside help is feared and not brought in to put new sales actions into place.
c. Can’t make the really hard decisions. Personal emotions cover good business decisions. Eliminating a veteran sales person, who has lost the drive, is “impossible”. Some CEO’s can’t see that by their avoiding obvious hard decisions they lose faith of other employees.
In summary, my years of sales and marketing experience have proven to me that virtually any company, in need of immediate sales, can benefit from several, if not all of the above tips. They really aren’t “my” ideas. They have evolved through decades of trial and error experiences by many businesses. I just feel, based on my personal experience, these six are especially relevant in the spring of 2003.
The biggest hurdle is company management is having the courage and objectivity to see and do what must be done. So if your company really must have more sales NOW, take these proven tips, study them carefully in terms of your own business practices and do something different NOW!
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Rick Wemmers has 26 years of experience counseling top executives in over 50 different industries. From Fortune 50 to new technology startups, he shows how any company can increase revenues, IF they really have the desire. He can be reached at: Wemmers Co
