Arno D.
xSELLerator and Business Growth Strategist (TopLinked 4000+) - arno@arnodiepeveen.com
What are your secret weapons to increase sales in a recession?
I posted six articles about Recession Proof Selling on my sales blog (www.dutchsalesblog.nl).
To facilitate my readers with the insights of the LinkedIn community, I'd like to know what your secret weapons are in a down economy. How do you manage to increase your sales numbers when every company and customer seems to delay on decisions?
What special techniques, creativity, paradigms, communication, ideas, etc. do you use/have to reach or even exceed your sales goals?
Good Answers (8)
Steve N.
Technical Architect at EMC
Best Answers in: Lead Generation (1), Sales Techniques (1), Computers and Software (1), Computer Networking (1)
Hi Arno,
I believe in every situation there are opportunities. Perception is Reality!
If one can differentiate one's solutions or products when others are complaining about the economy, you will stand out and beat the competition.
In every market segment one compete in, understanding the competitive landscape, positioning your solution in terms of target customers and price-point, coupled with appropriate marketing channels will become effective sales strategy.
Other than the above, building good customer relationship are vital in times of needs and economic slowdown, be prepared to stand out in the crowd and even be ready to think out of the box and do things beyond customers' expectations.
The market is made up of close communities and words will spread quickly in the industry. If you do the right things and do things right, you have pave the road to success in any market and economic situations.
Believe in oneself and success is on its way!
Raz C.
Social Media Director | Digital & Online Marketing Executive | Linkedin Trainer
Best Answers in: Using LinkedIn (4), Internet Marketing (1)
Dear Arno:
Reality is a state of mind. If you are fed by the media that there is a recession, you may eventually believe it is there!
However, if you believe this is the greatest opportunity for growth, as most of your competition are going out-of-business, this is a different reality, isn't it?
Henry Ford is frequently quoted: If you think you can, or you think you can't - You're right!
I believe this is true. If you believe that business is tough right now, you're results will justify your beliefs. If you can train yourself to ignore the doomsayers, you'll realize there is a different reality, a prosperous reality, with lots of opportunities!
Good Luck
Raz
Links:
▓▒░ Sandeep S.
Assistant Manager Email Marketing & Business Generation - sandeep.dnc@gmail.com] at GEP (Formerly Global eProcure)
Hello Arno:
Here is the answer for your comment – Why is it that every time there’s a whisper of looming recession, marketers go into panic mode. It seems to me that “scary” times offer companies the perfect opportunity to re-focus and remember why consumers buy products in the first place – it’s called the science of psychology and it works through feast or famine.
The psychology of why people buy products and services doesn’t change when times are hard. Recession or not, people don’t buy products; they buy health, wealth, status or romance. They buy a better life, a better body, a better mind.
So before you abandon your marketing altogether, remember that the science of psychology is, and always will be, the most powerful way to increase your web, phone and retail sales.
Here are four recession-proof psychological sales tips
1. Don’t sell to everyone.
It may be true that everyone could potentially buy your product, but it’s no to way market – you must take into account the demographic and psychographic profile of your customers. Are they primarily male or female? What is their income range? Do they have children? What is their age range? Do they own their own homes? Answer these questions, and more, before you market anything.
2. Focus on the promise.
Your product might have 10 or more benefits but there’s no need to list all of them in your marketing efforts. Pick the top two or three, make them a priority, and repeat them throughout your message. Don’t forget to offer proof of your claim using experts, testimonials, case studies, and demonstrations, if possible. If you haven’t seen the Blendtec blender commercials on You Tube, I recommend you take a look. The commercials only offer one product benefit throughout the whole series, but I have no doubt brand recognition and sales of the product have soared.
3. Establish Value Before Price
Borrow some tricks from Direct TV and don’t give your product’s price immediately. Take time to establish your product’s value to the consumer first. That way, you can slowly push them toward the sale, adding premiums and free gifts along the way. When you finally get to the price, you should already be hearing the sound of your cash register ring.
4. Get Creative With Your Money-back Guarantee (You Do Have One, Don’t You?)
Money-back guarantees work but a quick search on Google tells me the phrase is overused – 67,900,000 pages returned. The result: consumer indifference. Try getting creative with your guarantee by changing the word ‘money-back’ to something that applies to your product. For example, Bose’s 30 day ‘Performance’ Guarantee lets you ‘audition’ their headphones ‘where it counts most – in your own home.’ Tempur-pedic Sleep Systems offer a 90-day ‘Comfort’ Guarantee.
There may be talk of recession and consumers may be less susceptible to advertising than they used to be, but bleak times or not, consumers are still human. And the science of psychology will still make them spend their hard-earned money. The trick is to persuade them to spend it with you.
I hope, to the some extent I am able to answer your queries.
Regards,
Sandeep Srivastav
Team Leader - BD Europe Email Team | Global eProcure
Tel: - 732 382 6565 | Ext # 1139 |
Cell # 91 - 9870410048
sandeep.srivastav@globaleprocure.com | sandeep_dnc@rediffmail.com
Web: www.globaleprocure.com | www.novaserra.com
Scott C.
Manager, Support Services
Best Answers in: Professional Networking (4), Internet Marketing (1), Business Development (1), Career Management (1), Using LinkedIn (1)
Keeping in touch with my clients, prospects and referral partners on a regular basis. Continuing to give to others.
It's nothing new and works regardless of the economy.
My business has never been better because people are looking for ways to increase their business and I offer a way to do that.
Links:
There are no secret weapons! Consider the following, what products and services do you sell? What is the average turnover of your product? For instance, let's say in Telecom, on average 1/3 of clients have their contracts up for renewal. If you have been in the industry for a while and know your market segment, you have a pretty good idea who they are why they aren't with you now.
What is your plan, 6 - 9 months down the road to close them? If you are talking to them now, guess what the incumbent is already trying to renew them now! So you may never have a shot at the business!
I believe the same holds true in all business, know the turnover cycle, who is your market, understand their needs and solve their business problems. During a recession, not all businesses stop buying products and hold off on all purchasing decisions. If they did, they would be out of business. Find that sweet spot for your product and develop your strategy and carry it out.
Edward W.
Connectioneer
Best Answers in: Lead Generation (6), Sales Techniques (2), Direct Marketing (1), Inventory Management (1), Using LinkedIn (1)
AD,
Not really a secret weapon as much as a philosophy... and the same really applies to a down economy, up economy, right, left or any economy.
People are a the base of any business interaction (of significance) that exists and they are task with objectives (whether at the top of an organization or the bottom) to achieve- in order to benefit themselves, others, their company, etc. In order to interact with them successfully and (to a lesser extent) sell to them, one must be interested in sharing with them and helping them achieve their desires. (those things that drive them and benefit them in their personal and professional lives)
For this reason, sales professionals should be prepared to "Live to Give" and understand people at at the highest levels...
Strive to become a skillful people person- understanding how to inspire them, lead and follow them (as appropriate) and help them achieve what it is they desire (at any level) and the state of an economy will never impact sales performance.
Your weapons will then be nothing more than seeds you have planted in the most fertile and appreciating soil- people.
Randy B.
President of Centurion Advisory Group
Best Answers in: Wealth Management (12), Retirement and Estate Planning (9), Starting Up (5), Small Business (4), Equity Markets (3), Personal Investing (3), Government Policy (2), Personal Debt Management (2), Personal Real Estate (2), Education and Schools (1), Economics (1), Financial Regulation (1), Staffing and Recruiting (1), Business Development (1), Sales Techniques (1), Search Marketing (1), Business Analytics (1), Personal Taxes (1), Career Management (1), Using LinkedIn (1)
Hi Arno,
Continue to learn how to listen well, and continue to solve problems. It's the only solution I know.
Randy
This is a great question. We must remember that just because we are living in a recession, it does not change the fact the people still need our products. Lloyd Allard discussed in his book entitled "Selling" that people simply have to be persuaded that "the value of the products or services exceeds its costs." This is the only reason why people buy. This may mean telling them about the special things you do for your customers, like writing a blog, articles or books to keep them updated in your industry.
If people want our products that badly, they will find a way to buy them I was just reading in CNN Money today that despite the fact that the sub-prime mortgage crisis has affected the Europeans in the increase in the consumer credit cards rates, they are running around trying to find credit cards that offer lower interest rates so that they can still use credit cards!
I think that we have to go back to the basics of selling and stop thinking about the fact that we are living in a recession.
Gail Cavanaugh, TopLinked.com
More Answers (25)
Non sales answer: Show more customer empathy. Treat every prospect (lead not an opportunity) as a customer (not a prospect or potential customer but a customer)
The word will eventually get around and you will have a self generating lead source :-)
Good Luck!
David D.
Chief Executive (Zee2A) | Marketing Mentor | Business Coach
Best Answers in: Organizational Development (1)
Hi Arno -
I think there are two keys to increasing sales in a recessionary economy:
1) Understand that your prospect is turning over every penny at least twice before spending it (whatever you may think about there being a real recession or not!) and will only part with the cash if they are very sure that it will have a short-term positive return. Therefore you need to focus hard on being PERCEIVED AS CREDIBLE. Take time to establish your credibility early in the sales cycle, ideally long before you discuss price. Credible service providers will always win the contract when the economy is perceived as a threat.
2) Your marketing budgets will most likely be coming under pressure to move downward, and the temptation may be to stop marketing. That would be a bad mistake, because it is marketing that establishes your credibility. So start to make use of LOW-COST MARKETING CHANNELS like editorial in industry journals, online networks, referral programmes and the like. You can actually increase your marketing efforts while reducing your marketing budget - and if you do you will be taking business away from your competitors who are decreasing their marketing efforts.
Well, that's my (now not-so) secret weapon!
Cheers,
David D
PS: I recommend my colleague, Vanessa, who is a genius at milking huge returns from measly marketing budgets. She will no doubt have more to say on this ...
David D. also suggests this expert on this topic:
Hi Arno,
the best way to increase the sales during recession is to provide discounts on the products and also to provide after sale services.
Make your customer God and let them know it..........
james
books@jameshayes.ie
Links:
Great answers, all. It is important (as someone else alluded to) that regardless of the definition, people *think* there is a recession and so are acting like it.
One thought is to make sure your customer knows that they are getting the most bang for their buck, the most hollah for their dollah. I do this by emphasizing the risk free answer (ie. mney back guarantee) and dollarizing their investment so they can see that what they invest will return more dollars to them. Using both these strategies means that they cannot lose, and so my customers feel much more secure in handing over their hard earned and rapidly dwindling money. They don't take nearly as long to make a decision, because they know they won't lose.
Appreciate the question and look forward to others' responses as well!
Robin E. Weber
http://dailydeliberation.blogspot.com/
Graeme N.
Financial Statement Analysis | Evidence Based Business Management | Business Intelligence | Management Systems
Keep on providing insight and information to prospective clients and cleints.
Manage my CRM so I know who is where on my schedule and understand their schedule.
Links:
Mike K.
Interactive Marketing Specialist at Data Dog Interactive Marketing
Best Answers in: Lead Generation (6), Internet Marketing (5), Direct Marketing (4), Business Development (3), Sales Techniques (2)
In a down economy, with 2009 budgets remaining flat or even declining - clean up prospect the data base. Data decays at a rate of 2% a week. Start the new year off strong with good clean data that can drive more revenue from your campaigns.
We have been very successful with e-mail marketing campaigns. Getting the word out about products and services that you offer that many of your clients might not know what you do is a great weapon to keep in your arsenal.
Links:
Dr. KIRIAKOS T.
SVP SE Europe ILEKTROLA Energy & Saving Solutions * CELEC * ENIGIN * DIMOIL
Best Answers in: Customer Service (1), Accounting (1), Auditing (1), Economics (1), Financial Regulation (1), Business Analytics (1), Personal Debt Management (1), Personal Real Estate (1), Starting Up (1)
All nice answers but all...... theorical. I think, nobody of you guys has realy sold any special product for the recession periods. I did that & I do it every day. So let's start.
1st. People they like to believe in the recession. So, even if the problem is not so big, let them to think about recession.
2nd. Remember them every time what recession realy means in the crude terms of the day per day life.
3rd. Offer them only products / services that seems to them offering immediate money, disounts, savings & social safety.
4th. My solution for this topic was to sell credit cards combined with life & pension insurance policies, combining MONEY with SAFETY.
That is what my market was asking for in this recession period. To take some money (even plastic) & to feel safe for the future (trough an insurance policy).
WNewquay M.
Consultant
Best Answers in: Corporate Taxes (1), Organizational Development (1), Web Development (1)
From a quotation on your site:
"A typical business only hears from 4 percent of its dissatisfied customers - the other 96 percent leave, 91 percent for good, according to Jim Barnes, author of Secrets of CRM"
During times of adversity, step up your communications with *your* customers. Engage them in sincere conversations about their issues, acknowledge these, and then address them where possible with your products.
Manoj S.
Mobile Apps, Android, Windows, Product & Web Development Outsourcing, Web Data Crawling Company
Best Answers in: Web Development (2), Venture Capital and Private Equity (1), Internet Marketing (1), Professional Networking (1), Small Business (1), Starting Up (1), Blogging (1), Databases (1)
Customer is god. He is the best Judge and also the best sales pitch is his reference.
While the idea of a recession seems to impede consumer spending, keep in mind that if your target audience has a need for your product they are going to make the purchase. If the product isn't a necessity, rather an impulse purchase... you better hope the prices associated with production are not subject to a large increase, and you might consider cheaper marketing alternatives to keep overhead down, ultimately preventing an increase in price that the majority of the market will not consider unreasonable at the point of purchase.
Kelley B.
Partner / Director of Media Trade and Travel Services
Best Answers in: Manufacturing (1), Distribution (1)
In a recession the "nice to haves" are the first to be eliminated from the budget. If you incorporate the now missing AND significant "nice to haves" (think travel) bundled with your product or service offer you are helping your consumer to regain their previous perks impacted by the recession. Travel is proven to increase the perceived value, eliminating direct price comparisons with your competitors. We are offering a free webinar on leveraging Travel Components to meet your Q4 Sales Goals. http://www.r2win.com/BYOVWebinar/.
Links:
Kelley B. also suggests this expert on this topic:
This is a big question. In many parts of the world there has not been a recession for a decade or, in the case of Australia, almost two decades. This means that many sales people - the ones out treading the streets - have zero experience in selling in a recessionary climate.
We have come up with a list of 10 things that you have to do.
1) Activity is KING - each sales person has to make sure that they spend at least 30% of their time talking to NEW prospects.
2) Make prospecting for new business the first task you and your team do each day - follow the 10 before 10 rule (10 cold calls before 10 each morning).
3) Create a price handling objection bank - be prepared!
4) Get your database crystal clean - qualify people out quickly so you don't get bogged down in rubbish.
5) Develop three 'free' services you can offer new customers - reports, white papers, leads for their business etc
6) If you are in B2B - focus on extending the length of your contracts with existing clients.
7) Create a bank of at least 5 reasons to contact new prospects that help them without any apparent gain to you.
8) Have shorter sales campaigns - short sharp campaign - weekly or daily rather than monthly or quarterly
9) Measure activity daily - daily sales meetings - review sales behaviour weekly
10) Introduce short term 'instant reward' competitions & NBD activity based on incentives.
This short list was put together by Ciaran McGuigan - author of World's Best Sales Tips. He has a whole white paper on this exact copy available on the Strike Force Sales web site called 'A Sudden Change of Climate'. Feel free to come and download it - it is free.
Links:
- http://strikeforcesales.wordpress.com
- http://www.strikeforcesales.com.au/index.php?option=com_content&task=view&i...
Chris M. also suggests this expert on this topic:
I would value answers from sales veterans who have survived previous recessions.
Arno,
Your secret weapon is YOU! If you've got the stinkin thinkin then kick it out NOW!
Create your selling strategy and be specific. Be sure to follow your
sales strategy to a "T". It is your sales system and you want your
system to be producing at Top Capacity.
a. Who are your targets? Name, addresses, phone numbers, email
addresses and websites.
b. What is your contact strategy? Direct phone calls, followed up by
emails, followed up by a card in the mail, followed up by a lunch or
coffee invitation, followed up by another phone call, followed up by an
email etc. Each customer "touch" has to have a purpose, a clear
objective with a desired outcome. Is it moving you to the close?
c. Focus on building the relationship. People buy and refer off of their
relationship with you. If you don't know how to do this effectively
consult with someone you know that is great at it.
d. Get Referrals!!! This is the lost art and many people are scared to
death to get a referral. Every business lives and dies on whether or not
they get the referral. Remember MCI's Friends & Family Program?
That marketing campaign shot MCI through the roof and took them on
5 year tidal wave of success. I know cause I was there! You need to
have a referral strategy. Make a referral goal and put a number to it.
Then create a referral system and work that system. Remember, it's
about relationships. Start leveraging. Be sure that you are giving back
to your clients when they give to you. Reciprocity is a wonderul thing
and it is the oldest and truest method of doing business, just ask the
Godfather.
e. Stay on task! Many sales people fail because they become distracted.
These distractions leak dollars through their fingertips. Once you have
put your strategies and your systems together you have to work the
system and do not become distracted. Stay Focused and don't let
anything or anyone get you off task. The most successful sales people
are not necessarily the most talented. They are the most focused and
determined. Make sure you know your motivating factors for making
the sale. Are you working for a new house or car, a vacation, an
investing nest egg? Whatever your motivator is, be sure that you have
it in front of you at all times. Also, find someone in your organization or
your circle of friends or associats who are going to continually remind
you of your motivation and want to see you succeed!
There is my recession proof recipe of success! Happy Days are here again!
RANJIT M.
REGIONAL HEAD SALES - RIBG
Best Answers in: Change Management (1), Organizational Development (1)
Sales increase is driven by requirement of different angel, i.e. cost-benefit, situation, urgency, availability period, competition, pricing, targeted customers, market segments. It will differ from product to product, market to market and customers to customers. Better we should go with the case studies with a detailed analysis of above factors. We can definitely increase the sales in any time with adequate resources.
RANJIT M. also suggests these experts on this topic:
Susan R.
Business Networking Keynote Speaker, International Bestselling Author of How To Work A Room ® & F2F Communication Expert
Best Answers in: Job Search (1), Business Development (1), Using LinkedIn (1)
In a recession, be different from the competition. Renew relationships the old fashioned way... Pick Up the Phone and/or Show up Face to Face at their professional groups or schedule an inperson Sales Call. When everyone else is being OH SO CLEVER with their online techniques for sales, be a real person, bringing your personal touch to your prospects and former clients. Don't sell, converse. Conversation is the heart of a sale and builds those recession proof relationships.
Disclaimer: I did write How To Work a Room and the soon to be released Face To Face: How To Reclaim the Personal Touch in a Digital World.
Hi Arno,
When confronted with a recession it is important to,
Evaluate your Key Factors for Success,
Hone them,
Stick to what you are good in,
Play the customer retention instrument,
Pay extra attention to prospecting and keep the funnel full,
And focus, focus, focus.
Regards, Robert.
Links:
I think that there is still great opportunity to conduct business even when people are tightening their budgets, but you do have to take a look at what it is you are trying to sell them. Whether you like it or not, or try to self manifest a situation other than actual reality by saying 'if I think that we are not in a recession than we won't be', people are thinking twice about their purchases now and you better have a value proposition that is equal or greater than the actual monetary value of your good or service.
Its just that simple. Consumers are more educated and if you don't give them a clear reason why it makes sense for them to purchase your good, than they won't.
Gary M.
Founder at High Powered Networking
Best Answers in: Positioning (1), Energy and Development (1)
We are literally giving away our patented ice cream, milkshake, frappe and smoothie dispensers. If they don't have approval for capital expenditure that is like a dream come true.
The machines are just business drivers for the client base to start buying the residuals. I have created a blog at http://garyshanemcgill.blogspot.com where you can read about our ice cream dispenser upcharge with low temperature ice cream.
It is a great business model and the foodservice distributors love it because it is an easy sale. I am working on expanding this model and this is just so cool.
Write to me at gary.mcgill@one-shot.com if you want to know more.
Links:
I tell my customers daily- 1). Stick with what is working, and if it is not working get rid of it or fix it 2.) Stay Focused on your goals. You cannot afford to just ignore or let things slide especially in this business environment.
How do you know if it is working? You must continue to track where you are getting you clients/customers from. If you do not have something in place, I am happy to give suggestions of how to do this. Easiest most cost effective way- communicate with them and just ask.
How do you fix it? Talk over your business goals, put it down in writing, and if it is something that does not match up, revise it so it does or again, get rid of it. You never know if you are on track to achieving if you don't know where you are going. Once you have your goals, monitor your progress, hone in on your targets and message. If you are having trouble is it because the goal is not reasonable, or because you lost focus? If you cannot reach your goals by usual methods, what new methods can you try?
If you have a specific industry or client that you are looking for assistance with, let me know and I am happy to help.
