First, the big question: How have the markets and economic conditions impacted most firms? The answers are quite varied. Generally, there has been impact, sometimes significant, with volume dropping as much as 25 percent. However, some have seen their sales increase appreciably by focusing on new markets, and introducing new products and services.
From a global perspective, companies that are well positioned internationally are not experiencing the same level of decline. One company did ask all of its employees to take a cut in pay, but that is the exception.
The following represents a synthesis of the key strategies these senior executives communicated. While no one in the group is doing all of them, they do reflect where effort is being applied. We suggest you study them and reflect on them, but more importantly, act on those that are most relevant to your business. (More)
1. Be aggressive
The most pervasive strategy shared by executives is that this is the time to be aggressive. This is the time to be well-positioned no matter what economic winds may be blowing.
Taking share and stimulating a spirit of attack is the strategy many of these sales leaders are taking during these times. The entire organization, they say, needs to be focused even more passionately on growth. “Do not accept mediocrity” is a resounding message.
2. Protect your turf
The second most important strategy is protecting your position with those customers where you are entrenched. Many are providing customers with additional enhancements such as better terms, special programs and value offerings.
Some are conducting detailed business reviews to align their own strategies more closely with the customer’s growth efforts, and in turn, create an even stronger level of loyalty and interdependence.
Others are providing value by presenting their customers with a menu of available tactics to achieve the growth the customer seeks. Some are customizing menus to the channel being served – the more a program is customized to the customer, the better it is received.
3. Engage and leverage the sales force
Many believe these times represent an ideal occasion to re-engage the sales force. While some are using the time to re-examine the caliber of their talent, most are more provocative.
Many are giving the sales force a raise by introducing higher and more lucrative incentives for new account acquisitions; others are adding more salespeople in the effort to penetrate and gain share.
Most companies are placing pressure on poor performers. Dead weight will sink the ship in this climate.
Some are aggressively expanding the inside sales channel to mine where the direct sales organization is not able to focus.
4. Launch new products and channels
A common strategy being applied to open up opportunities in new or adjacent channels is to introduce innovative new products.
Some companies commit to stringent competitive analysis in order to prevent market share erosion.
Some are expanding or building aggressive Internet strategies to reach segments not traditionally covered by the sales force.
All are trying their best to focus on value and not on price.
5. Sustain promotional activity
Many firms are promoting more heavily and more aggressively; some are not doing anything special and, in fact, are even cutting back on promotions to protect margins. Many are changing their customer incentives so they are tied to incremental growth.
Requesting comprehensive product line reviews with customers is a proactive strategy by some to ensure the best product mix exists.
6. Challenge sales management
Few appear to be tapping into improving the productivity of the sales manager directly.
One organization is truly serious about improving the effectiveness of their sales teams nationally by appointing seven directors of sales force effectiveness.
Other organizations that are demonstrating leadership in sales management followed a variety of tactics to improve performance. They are:
• Helping their sales leaders coach more effectively.
• Keeping senior executives on the road, in front of the company’s top customers.
• Elevating the tracking of activity metrics and introducing score cards to focus effort and build accountability.
• Paying bonuses based on achievement of special promotions and objectives.
7. Develop accountability via better planning and execution
Companies that are serious about execution at the field level indicate this is one of their strongest strategies to drive growth. They challenge each salesperson to focus on seeking new opportunities.
Some are making the planning process more intense. The best establish accountability for developing the plan and working the plan.
8. Accelerate communications
Most leaders are staying in front of their salespeople and customers more actively than before.
Monthly call-ins and Web-based communications, frequent conference calls, and active contact with the entire customer base through product bulletins and frequency of newsletters seems to be the rule.
In all cases, the spirit is to maintain a positive disposition.
9. Focus on education
While many organizations that participated were not investing heavily in training now, a few see this slowdown as the best time to make education a priority investment in helping the salesperson differentiate himself/herself with customers.
Others see education now as the basis for building long-term employee loyalty and reaffirming their company’s commitment to the front line.
10. Focus on cost management (when appropriate)
Everyone is conscious about spending and cutting costs where needed. Many are being careful, as too much adjustment will impact long-term momentum.
