Worldwide OfficesCan your business sell effectively in the New Economy ?
Scary isn’t it? If you’re running a business, it seems that the road ahead is going to give you a bumpy ride. The election is now over, and we’ll soon have a new budget. The chances are that we’re in for some major public spending cuts that will ultimately affect the buying power and patterns of that vast majority of UK citizens and businesses. Some sectors have already seen a significant reduction in sales. Just compare the high-street retail sector now to what it was in 2008. Gone are Woolworths, Borders, Zavvi, Threshers, Land of Leather, Adams, Waterford/Wedgewood – the list is long.
And it’s not just retail or consumer-driven businesses that are suffering. The UK Manufacturing industry ‘fell off a cliff’ in late 2008, and many have not survived to see an upturn.
Of course, it seems obvious doesn’t it? If people have less money to spend, and are worried about their immediate future, then they are less likely to spend, invest; they are less likely to buy. But it’s not just the lack of cash or confidence that is causing businesses to suffer from lack of sales. All recessions tend to sort out the weak from the strong. Businesses with very clear value propositions, that deliver very good products and very good services, with great efficiency and vision tend to survive recessions – many even prosper in this environment.
But this recession is like no others. The reduction in demand for many goods and services is not just down to lack of cash and confidence. The buying patterns of those able to spend have changed. The recession has actually forced people and businesses to do much more research on what they actually need; to search out new solutions and suppliers. Businesses are also now more focused on what they really need, and are prepared to consider many other options and alternatives than perhaps they would have done before 2008 (including the option of doing nothing at all, or using suppliers they would never have chosen a few years ago). The internet is also playing a significant part. Of course we can now search for almost any item or service and find a myriad of suppliers. But social networking and business community sites now also connect together players within a supply chain. Consumers and business are starting to trust these communities more and are now putting their cash where their faith is – and often it’s not with the traditional players.
At the same time, many businesses continue to do what they have always done. They are simply trying to ‘wait out’ the recession; to muddle through until demand picks up again. Some pile on the buying promotions, ramp-up their sales incentives, fire and hire different sales talent and hope that these actions will see them through. Some will make it, many will not.
But while all of this is happening, there are many businesses that are in fact prospering in this new landscape. Those businesses that have been pro-active and re-assessed their sales and marketing are the winners. To be successful in this new landscape you need to re-evaluate your target market. Know in much more detail what your clients are really looking for and why they buy. You may need to adjust your sales approach, your go-to-market strategy. The new sales model is more about creating an environment where people want to buy than pushing a sales cycle towards a reluctant or hesitant buyer. If buying patterns have changed, then has your sales model changed to reflect the new status quo?
It used to be that to be successful at selling you just needed the right sales process, with the right sales talent, the right attitude, the right behaviours and sales measurements. Those are now a given. To be successful at sales in this New Economy you need to fundamentally change your approach to selling.
Guide to High Performance Sales in The New Economy
Vistage is the world’s leading Chief Executive organization, with over 15,000 members around the world. To reflect this new economic landscape we’re now in, we’ve produced a brand new UK Guide to High Performance Sales in The New Economy that tells you what to focus on to improve your sales in the current times. To download your copy, simply visit www.neweconomyblog.co.uk/hps5 and fill in your details.
I wish you the best of luck in growing your sales. I hope that this brief article helps a little, but be sure to request your copy of our new Guide to High Performance Sales in The New Economy – it has much more detail and tips that might help you.
Best of luck
Steve Gilroy
Chief Executive
Vistage International (UK & Ireland)
11:23 am on November 1st, 2010
One upside could be to force companies to spend smarter and really think about there purchases.
I think especially with larger companies where spending is less accountable and less personal there is a lot of unnecessary spending. Unfortunately not many firms think smart when spending and automatically go for the cheapest option which may not always save them money in the long run.