Sales Crisis Management

Carry on selling in a falling market or recession - sales crisis management strategies.

If you have been in sales for a while, you are bound to have experienced a sales crisis. A time when external or internal events cause a significant drop in sales.

What causes a sales crisis?

Economic Downturns: Recessions and market contractions usually lead to reduced budgets and cancelled or delayed purchasing decisions.

Supply Chain Disruptions: Shortages and interruptions in the supply chain affect product availability and delivery timelines.

Technical Failures: Issues with critical sales or communication platforms can hinder operations and customer interactions.

Loss of Key Accounts: Losing major clients can significantly impact revenue streams.

Internal Misalignment: Poor coordination between sales and marketing teams causes missed opportunities, conflict, and inefficiencies.

Business Outlook

We all have access to the same information. Fiscal trends, the macro and micro economic influences, liquidity in our markets. The sweep of history and the winds of change are apparent if we stand back far enough. Now is the time to hope for the best yet plan for the worst. Optimism must be grounded in realism for it to be effective.

It is time to think of ways to become much more efficient and deliver more for less. To cut costs while redoubling business development and marketing activities.

This effort in blue sky thinking cannot anticipate the exact circumstances or the environment of any particular business or individual however, some of the following frameworks and ideas might inspire new thinking and the discovery or rediscovery of opportunities that apply.

Acres of Diamonds

In sales training courses I am continually surprised that participants have not heard the Acres of Diamonds story. As far as I can tell it first reached the ears of Westerners in a speech by Russell Herman Conwell. His words were first published in 1890. If you would like to read the speech it is freely available online. In essence, Conwell tells of several instances where hapless individuals unknowingly abandon riches on land they own free and clear for the dream of greater wealth.

The first story purports to underpin the discovery of the greatest diamond mine in the Golconda territory, now the Andhra Pradesh state of India.

Well, you couldn't be blamed for a little scepticism about the drama of the story. Nonetheless, the point is well made. Most often, we overlook opportunities under our noses. So the challenge is restated, seek the low-hanging fruit in your own garden that you have inevitably overlooked.

Get Outside Help

Despite years of hard work either building a business, career or both, much yet remains undiscovered. I have always found it valuable to recruit help when searching for opportunities that should be obvious and apparent. At least they always are after they have been discovered.

Select some optimistic peers, team members, friends, and family. It doesn't matter who, providing they know your business and have an optimistic outlook. Select no more than six people at a time and conduct a series of brainstorming sessions.

You must have heard about brainstorming. The principle is to use collective intent to answer any question or solve any problem in hundreds of different ways. If you don't know how brainstorming works, the vital rule is that any and all ideas count regardless of their practicality or realism. Criticism of any idea is forbidden. You sort out the good ideas afterwards.

If you have tried brainstorming or even participated in a properly run session you know how productive it can be. If not, I urge you to try it. There is nothing to lose.

Don't forget to appoint a scribe who can write quickly and legibly.

Innovate

Innovation happens faster when the need is great. If your stuff enables customers to do more for less, and you can prove a short-term return on investment, the worst-hit markets may still present increased opportunity.

Sales crises can be averted by paying attention to the details.

What are the best strategies for managing a sales crisis?

Managing a sales crisis, such as selling in a falling market, requires a combination of strategic planning, adaptability, and effective communication. Here are some specific strategies:

Have a Plan: Anticipate crisis scenarios and plan how to respond in advance. If you don't have a plan, start by developing one. Brainstorm options and decide on the most promising and practical ideas. Then work out how to implement the best solutions.

Provide More Value: Offer tailored solutions that directly address clients' immediate challenges or pain points.

Review Pricing and Value Propositions: Create more flexible pricing. Consider a tiered structure, bundled offerings, or bespoke solutions to meet budget-conscious needs.

Increase Communication: Ensure regular transparent communication with clients, partners, and internal teams to manage expectations and build trust.

Invest in Customer Retention: Customers may also be suffering. Strengthen key customer relationships through consultation, strategic initiatives, and customer service improvements.

Strengthen the Business Case: Improve articulation of the long-term return on investment, cost savings, or efficiency gains your solutions deliver.

Upsell and Cross-Sell: Revisit customer engagements and find opportunities to expand existing contracts by offering complementary products or services.

Strengthen Sales Effectiveness: Consult sales staff and seek ways to improve sales effectiveness, efficiency, and productivity.

Provide Sales Training: Help sales teams adapt by developing new playbooks, messaging, and tactics that acknowledge market conditions, build customer empathy, and provide options.

Strengthen Marketing and Lead Generation: Focus marketing efforts on sectors less impacted by the falling market or client segments most likely to convert in the current climate.

Improve Operational Efficiency: Streamline processes and optimise workflows to reduce costs and improve efficiency.

Explore New Markets: Explore diversification opportunities in industries or sectors less affected by the downturn.

Collaborative Partnerships: Build alliances with complementary businesses to broaden your market reach and uncover new opportunities.

Article by Clive Miller

Related Resources:

If you need skills for sales crisis management or ways to increase sales productivity, we can help. Telephone +44 (0)1392 851500. We will be pleased to learn about your needs and discuss some options. Alternatively, email custserv@salessense.co.uk or use the contact form here.