How To Recession Proof Your Revenue Target

Monday 24 November, 2008

by Ian Stephens

When the going gets tough, true sales professionals man the O.A.R. (take Ownership, Accountability and Responsibility), lean harder into the opposing current and double the rowing tempo.

They implement 4 strategies to secure their revenue targets. Let's explore each:

1. Get ‘active' and up the ante on the key activities which drive results
   
   Inaction breeds depression. Take a lesson from the dictionary; ‘Activity' comes well before ‘Results'.
   
   You have no control over the results; you can only control the activity you do. During tough times, sales professionals increase the rowing tempo; by this I mean they know they will need to do more ‘activity' in order to get the same result.
   
   Get active. Get out there and expect the lag period between activities and results to blow-out. At the moment some customers will be in a holding pattern, so you need to allow for the fact that your lag factor will increase.
   
2. Know your conversion ratios and expect them to drop
   
   The current level of volatility in the global economic market is causing people and businesses to adopt a ‘wait and see' approach to some projects or purchases.
   
   We can therefore expect to see your usual conversion ratios shift. If you usually win two in every three quotes / tenders or proposals, expect it to drop to one in three.
   
   This doesn't mean we panic - it simply means you have to increase activity and pump more into the pipeline, because not as much will make it through.
   
   It is therefore critical to track your ratios in order to chart any movement, and adjust your activity levels accordingly.
   
3. Adjust your marketing direction to include some ‘recession proof' market segments
   
   More than ever it's time to put away the shotgun, and bring out the sniper rifle. Re-visit your marketing direction. Identify or intensify you sales activity on those market segments which are more resilient to economic downturn.
   
   Communicate a clear ‘sales and marketing' direction to the sales team, and ensure they are monitored, measured and rewarded for doing sales activity which is aligned to the sales and marketing direction.
   
4. Re-hone your ‘consultative selling' skills
   
   More than ever your ability to ‘add value' becomes critical. The sky has not fallen in, but businesses and consumers are tightening their belts. They are still spending but only where they see great value for money, or where your products / services solve bigger issues, challenges or concerns for them.
   
   Our skill of uncovering their real needs and offering up a solution linked strongly to those needs becomes paramount during tough times.
   
   Regardless of how long you have been at it, dust off your ‘consultative selling skills' training, become aware of the bad habits you or your team have fallen into during the good times, and unlearn them.
   
   The best sales performers during an ‘economic winter season' are those who can unlearn bad habits. Re-learn the consultative skills to build strong rapport, and create an environment where the client or consumer wants to buy from you.

Source:ceoonline.com