 In
the early 1990s, sales slumped and diamond sellers increasingly faced
competition from a wide range of alternative luxury products. De Beers
however took a smart approach to boost their diamond sales. They gave
diamonds a special significance, as a reflection of love, and
translated these consumer emotions into purchasing behavior. Following
this campaign De Beers' diamond sales ran ahead of market trends. This
winning campaign demonstrated how companies should adjust their
selling approach to suit existing economic trends. With fragmented
markets and economic uncertainty, closing business deals can be
tougher than ever, as customers are increasingly cautious with
expenses. Nevertheless, following the right selling approach can help
close more deals even during recessions.
1. Qualify the
Prospects
Instead of cutting down the market research budget, try to know
more about how customers are responding to the recession. Determine
their wants and motives. The financial crisis has rapidly changed the
way customers react to product needs. They now spend more time
searching for durable products and negotiate harder at the point of
sale. They're more willing to postpone purchases or buy less. For most
customers, yesterday's 'must-have-features' have become today's
'can-live-without'. Therefore, research your sales leads and
prioritize them based on their ability and willingness to buy and pay
quickly.
2. Predict and
Prepare
Imagine what your prospects may be feeling during this economic
downturn. Predict how they will react to your proposal and prepare
your responses.
3. Become a
Solution-Provider
Make your product/service indispensable. During recessions, people
don't want to spend on anything they don't perceive as an absolute
necessity. So create the perception of absolute need. Show your
prospects how your product can be helpful for them during the tough
times.
4. Sell the
Benefits, not the Product
During recessions everyone is interested in buying something that
can help them make more money or save money. So, it's crucial to focus
on the benefits that your product/service can give. If your
product/service can help companies save money; market the savings. If
it can help achieve better productivity; sell the added productivity.
5. Cost-Justify your
Proposal
At a time like this, budgets are tight, so you must be able to
justify your cost. Connect the dots for your prospects. If you can
save them money, show them exactly how much money you can save. If you
can help increase productivity, translate the productivity into
dollars and cents.
6. Offer your
prospects something more
Research your pricing options. Work with your CFO or other
decision-makers and create alternate financing plans. Since your
prospects may be experiencing cash-flow problems, giving them delayed
payment options may be a good idea to close a deal. You can even offer
special discounts or provide extra services for the same cost.
Providing additional warranty on your products/services can also help.
While these may not affect your budget much, they will go a long way
in pleasing your prospects.
7. Stay Optimistic
Be confident when selling in a recession. Believe that you can
close the deal. Nothing makes selling more difficult than the
gloom-and-doom attitude. Hence keep your negative emotions in check.
While it's important to know what's going on, don't waste your
precious enthusiasm dwelling on bad news. Rather than thinking about
the collapsing economy, focus on how the situation presents
interesting challenges for you to overcome. "The only thing we
have to fear is fear itself", said Franklin Roosevelt during the
Great Depression. The truth is that recessions are unavoidable. They
happen as a normal part of the business cycle. But it's important for
every business to look past the recession and continue to set big
goals. After all, every recession is followed by recovery and
prosperity.
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