It Looks Like Bad Times

When economies are in a downturn, some businesses implement a scorched-earth policy in the belief that the solution to decreased sales is to compensates losses by cutting costs. This strategy may work for some, but for most this short-term fix will cost them more than they save, without gaining anything in the long-term.

When we are in downturns and we see comparative sales dropping, you may experiencing some decreased consumer spending. However, it is just as likely that you are seeing the results of a long-term sales and marketing problem that has been cutting into revenues and margins forever, but now it is more noticeable. This is not the time to hunker down. To avoid further losses and to gain margins and revenues when customers come back, this is exactly the time to renovate your sales and marketing house. Put on a new roof and add a coat of paint: You won't be sorry.

Here are the basic steps needing done:

Marketing

1. Analyze your efforts. What is working, what isn't? Do more of what's working and eliminate what isn't.
2. Ensure strategies are integrated and measurable. If they aren't, you have the wrong people doing your marketing. Replace them. And if that person is you, get it together or outsource it. For marketing to succeed, it must feature a strategic plan that integrates marketing tools to maximize success and that measures everything being done.
3. Ensure that marketing is a long-term effort. Starting and stopping, doing a little here and a little there, is a failed policy. You might as well host a company BBQ and burn money instead of charcoal.
4. Get a steady hand on marketing and make sure it is working every day of every month of every year. And measure, measure, measure, revise, revise, revise.

Sales

1. Have leads, referrals or walk-ins declined? If, yes, why? Fix it with marketing. If no, your sales team needs serious evaluation.
2. Sales Training is called for if closings are declining faster than are leads. The problem has likely existed forever. You may need to replace some of the sales staff with people who get it. What does "get it" mean? It means the following: doing more of the same, which likely means you are selling products and services, doesn't work.
3. Instead, selling is most successful when: it is people-focused, not products and services focused; when sales staff stop seeing themselves as sellers and instead see themselves as brand ambassadors and servants of the customers; when staff create great experiences for the customers; when they specifically understand each customer's wants and needs; and when they provide solutions to meet those wants and needs.

The above basics apply whether you are b2b or b2c. Once you understand the basics, you need to open up your wallet and fix what is wrong. You can't fix the economy but you can fix your business.

P.S. Also check out Drew's Marketing, recessions and budgets....oh my!,

PPSS: And check out Seth's Marketing in a recession.

Comments

[Jim Rudnick]

great lists Lew! Only one I'd add, is maybe under the Marketing tab would be to add NETWORKING! Get out there and get in front of your marketing universe....offer talks, send congrats on recent community happenings to the heroes of same, do up PressReleases and generally, put your face in front of buyers....works it does!

:-)

Jim

[Lewis Green]

Jim,

Man, I can’t believe I missed that. You are absolutely correct. Networking needs to be a regular piece of our marketing and sales pie. Good catch.

Lewis

[Clay Parker Jones]

As Jim mentions, great list.

It's all about triage as we enter these hard times!

[Lewis Green]

Thanks Clay. We need to do all the right things, not simply cut costs.

[Gary]

This is a great post. You really hit the nail on the head.

To add to the comment on networking, you might want to add collaborate with other marketing thought leaders to gain new insight, and best practices.

[Lewis Green]

Gary,

Excellent point! Collaboration and networking with smart resources are always excellent ways to learn and share.

Lewis