Rick R.
21st Century Sales Growth for Founders & Entrepreneurs, RainMaker Maker, Social Selling Guru, Sales Evaluation
How do you bring up the recession during the sales process?
This is actually a question that was raised on my blog. If you'd like to read the post or get the context, here's the link. http://therainmakermaker.com/2008/05/09/sales-in-a-recession.aspx#comment-1039494
Answers (16)
Flyn P.
TeleSales Skills Webinar – Last chance to register for Unique Selling Propositions webinar on 5/22►bitly.com/usp_webinar
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First of all there is no indication at this time that we are going into a recession. I think it pure madness to bring up such a negative in any sales call, especially when it doesn't exist.
Even if there were, why in heavens name would would you want to bring up the recession in a sales call? Why not just send them the data showing exactly where the competition is better if you want to kill the sale.
There is only one reason one would do this is if the solution being offered will assist the prospect if we go into a recession.
One of the first rules of selling is you don't create negatives or objections.
Peter C.
Helping Marketing Agencies Grow
Best Answers in: Internet Marketing (2), Business Development (2), Search Marketing (1)
I couldn't DISAGREE more with Flyn. (Of course, I don't call myself a "sales expert"). However, in my experience as a salesperson, the easiest way to avoid an objection at the end of a sales call is to bring it up in the beginning. If I bring it up and let them tell me it's "not an issue" than they CANNOT bring it up at the end as an excuse when it's time to buy.
To Flyn's credit, my service does help people market their business and it's a relatively low cost way to measurably generate sales leads online. SO, it's pretty dang recession proof and for businesses that invest in their business for the long term despite current economic uncertainties, it's a smart investment.
There's a handful of objections that I bring up in the beginning of the sales call when I'm selling our internet marketing service. This is usually after I've established that there is a problem/need and that I can solve it.
This is how I bring up a few common objections, not necessarily in this order.
1. Prospective clients often come to us and they want miracles to happen with their website. But, this stuff requires their time to make work. Most of that time is spent writing things about their product, service, industry, the problems they solve, etc. So... I'm not really able to help clients if they don't have atleast a few hours/week to spend doing this stuff. Do you have a few hours a week?
2. We've designed our internet marketing application to be simple and intuitive. We've designed it for marketing professionals and small business owners to effectively manage their website and their online marketing activities without technical experience required. And we have a training program that teaches people internet marketing best practices in a step by step method. I have 65 year old clients that didn't know how to make a link when we started with them - who are successfully doing keyword research, creating landing pages, building their blog audience and generating leads online based on their own effort. Nonetheless, there's some things you're going to need to learn in order for you to do this successfully. Are you confident you can pick up some new skills?
3. We've already discussed that there's a decent potential upside if you were to do this stuff correctly. And we've established that you're not sure how to do that. Before our next call, I plan to do a little homework about your business, website and your competitors to determine the true opportunity online. And if I can help you, I'll demonstrate "how" in our next call. However, before I do all that work and we spend all this time together, will you be able to invest $3500 in order to make this all happen?
I am the one that asked Rick the question about the "recession EXCUSE".
I suppose I'd ask that question in the beginning. I'd probably say something like, "There's a lot of talk about recession. And when I talk to people in your line of work, they seem to be getting hit the hardest. Do you expect your business to suffer?"
There's a few relevant blog posts linked below...
Links:
- http://therainmakermaker.com/2008/05/09/sales-in-a-recession.aspx
- http://www.omghub.com/salesdevelopmentblog/tabid/5809/bid/281/Selling-in-th...
- http://www.pc4media.net/Blog/Tag/sales
Peter C. also suggests these experts on this topic:
I agree more WITH Flyn on this. By creating the objection in the beginning, you are doing nothing but stirring the pot for the client and potentially setting yourself up for failure. Why have the customer think from the get go "oh wow, I didn't even think of that, maybe this isn't such a good idea after all" You've just created more hurdles for yourself to get over...My opinion is that a good salesperson is ALWAYS prepared to handle objections but ONLY as they come up. By creating the objection for them AND answering it in the same sentence, you are essentially doing their job on top of your own and giving them more reason NOT to move forward.
Key point here is to be PREPARED to answer all objections, not to script your presentation addressing objections you THINK you may be asked.
Bottom line is that the word "recession" is a word best left behind closed doors and OUT of your sales presentation.
Douglas G.
Director of Strategic Business Development at Language Line Services
Best Answers in: Internationalization and Localization (2), Planning (1)
Selling is about helping people. Helping people is about offering solutions to problems. If your client views the recession as real then it is a problem to the client and should be an opportunity to the sales person.
I agree with your blog regarding the differences between the two individuals. An astute individual will have researched all potential objections to their product and/or service and will be able to show how these objections are actually opportunities for the client and thus opportunities for the sales person.
If the objection is a 'recession' than the response should be how the product/service helps the client remain recession proof.
Joshua K.
Founder at Clever Zebo
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I am going to take the middle road. I think it's important above all to know your customer.
Recession is a very loaded word. Technically, we are not in a recession as defined: two or more successive quarters of negative GDP growth. But it FEELS to many people like we are in a recession, and the more people talk about us being in recession, the more it feels that way.
For a salesperson, "recession" talk is a tool like any other: sports talk, family inquiries, tasteless jokes. I think the real question for any customer or prospect is: does using the R word make the sale more or less likely? And I think the answer is purely dependent on the audience.
Personally, though, I am not a big fan of recession talk because the talk is usually more powerful than the facts. The state of recession is based on very macro numbers that often have little correlation to local and personal conditions. If you're in the mortgage backed securities industry right now, it feels big time like we're in a recession, but if you're with a technology company selling inbound lead generation tools, then times are good.
Links:
Shari G.
Advertising Sales Veteran, Floral Designer, Event Planner
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YOU DON"T!
Patrick K. H.
B2B Sales Professional,Discrete semiconductor, Actives, Passives, Electro-Mechanical, Power Supply .
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You mean the media generated fear based recession Rick?
You bring up that recession thing by asking simply,
How is your business?
This is not negative and it's a topic customers love to talk about.
There is so much information available these days on companies, by reading a little of the local business journal or the WSJ that your question has already been answered Really if you have to ask, you are probably calling on the wrong accounts. Sales is all about change, change is constant. If you have sales folks who dont adjust Im sure they can find work in an area where they are comfortable in.
Cheers from the "left coast" Rick.
Lance C.
President of SalesManage Solutions ... Recruiting the Best and Coaching People from Good to Great™
Best Answers in: Sales Techniques (22), Business Development (6), Organizational Development (2), Customer Service (1), Occupational Training (1), Staffing and Recruiting (1), Customer Relationship Management (1)
You absolutely DON"T!
And, if there is one ... do not participate.
Work longer, smarter, more creatively than
ever before. Get the job done with those
who are buyers today.
Dominic F.
iPhone/iPad Developer, London and International
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Never bring up negativity like this! Next you'll be asking if we should be bring up global disasters of flood, fire and famine. Who wants to buy from a sales person who brings up so much negativity?
Ask yourself how you got to meet this client - they've given some buying signs otherwise you wouldn't be there.
So, if the client brings up the recession, turn it around and ask them how they feel about it and what it means to them... If they want your opinion then fair enough, but it shouldn't be part of the sales process and should be left for the after dinner drinks following a successful order.
Jim B.
Partner with the Bishop Ross Group at Morgan Stanley
Best Answers in: Mentoring (1), Personal Debt Management (1)
There are some key times to introduce the negative, when the time is right and you have the relationship developed to not get kicked out. I agree not to reference "the recession" (thats another discussion) but I will address the current economy and its impact on your business plan. If I can not disturb some issue with a prospect then what motivation is there to see me again.
Whether you do or whether you don't depends on whether you have a solution that reduces their costs or increases their revenue. If you fit into one of those two niches, it's to your advantage to bring it up.
If you don't fit into one of those two niches, stay away from it unless they bring it up and if they bring it up, be careful not to HAVE any empathy. It's OK to show some empathy, as long as you don't buy into it yourself.
Links:
There was a great talk by Scott Latham of Bentley College about using a recession to your advantage. Sure, if your business is affected by the alleged recession, cut back on certain things but continue your marketing and R&D. What happens to businesses that feel they can't market like they used to end up in a sorry state when the recession ends. If you continue to market and continue to grow your business during hard times, you'll be in great shape when it's over. Companies tend not to fail during the recession, they tend to fail a year after a recession, according to Mr. Latham.
So instead of avoiding what could be a difficult subject during a sales call, be the expert at running a business in tough times. Give efficient and solid solutions. Be the hero.
Edward W.
Connectioneer
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Wow! This quesition has caused some heated debate... Personally, I would not bring up a recession because it could be a distraction from the selling process. Unless the prospect clearly states a recession as an objection, I would not touch it. Actually, I would not "bring up" ANY topic not related to the prospects critical issues and I would be LISTENING more than talking so as not to "bring up" ANYTHING less than relevant to their interests.
This will help,
Edward
Salespersons sometimes look for excuses to justify no sales. Even for themself. The recession would be a timely excuse when there's no sales. However, If you are a sales manager, you should bring up your team into the reality and find out together them the ways to keep selling as before. They are daily in the field and may feedback your company to get the right solutions. If you are the salesperson, I'd say that this is the right time to show your sales skills. You gotta be energized, motivated and let the recession out of your mind. It's not easy, because if it was, probably you were not hired for that. Selling COLD COCONUT WATER on a sunny beach is quite easy... no many sales skills are required!!
Robb M.
Manager of Hosting Operations at Kenexa
Best Answers in: Computers and Software (2), Information Storage (1)
First try not to get caught short by some that will throw back that a Recession is two consecutive quarters with negative growth and while we have had week growth it has not been negative growth. The 'R' word is more of a political junket word during election times then it is financial analysis. I am in IT not sales but from my chair its all in the pitch. During these questionable economic times product X is a better value then its competition because A,B&C.
