Revenue Journal®

I really enjoy making sales departments more productive. It's one of the most rewarding aspects of what I do, because there's always so much to improve, and because even a few changes can make a huge difference in a company's revenues. As we slip further into group-recession-think, it's time to look at what an economic slowdown really means and what you can do to make sure your business continues to grow - in spite of the persistent recession drumbeat. There are a number of things you can do to improve your sales levels in this economic environment.

1) Ignore the recession drumbeat. It's easy to be spooked by the latest news on the economy. Even if you are in an industry that is directly affected by a slowdown, being distracted from your normal revenue-producing tasks - and lowering your sights - will only make matters worse. Make a personal, definite decision that your business will be an exception to the overall trend.

It is possible to be going "up" when everyone else is going "down" - I've done it myself several times in my career, so I speak from personal experience. Your two biggest enemies are always distraction and fear.

During recessionary periods, there is a lot of talk about "economic uncertainty." So what else is new? Truth be told, we live with economic uncertainty every single day. The only certainty comes from your own behavior. You're either focused on your revenue-producing activities, or you're doing something else - including being hypnotized by your favorite news source, fretting about the economy.

2) Help your people discount the recession drumbeat. Too many company leaders underestimate the day-to-day, mission-critical importance of communicating clearly and frequently with their employees. They make decisions and start implementing projects without properly telling the troops what's up.

Employees spend a portion of every day watching and discussing their boss' actions. If the boss does not clearly and frequently communicate his decisions and "next steps," employees come to their own conclusions and start making stuff up. As they talk amongst themselves, they create their own version of reality, and start acting on it. This tendency is particularly active in sales departments, because they are professional talkers.

"Our manager was fired because he told the boss the truth," is a good example of a shared belief. This belief then leads employees to avoid telling the boss the truth. In this situation, what the boss should have done is sit everyone down after that manager was fired, and, in a gracious but honest way, tell the employees what really happened. "We had to part company because he reported that he was doing one thing, when in fact he was doing something else - over and over. We can't operate a business this way."

Instead of thinking the boss fired someone for "telling the truth," employees would realize that the person was fired for exactly the opposite reason - because he wasn't telling the truth. This is just one example of a widely held false belief; I could give countless other examples.

During a recession, the employee gossip machine will be fueled by the latest gloom-and-doom news being spewed out by the media outlets. You must counter this drumbeat with your own. Make it clear that your intention is to be a "recession-free zone," an exception to the trend. Put things into perspective for your employees. For example, you can tell them that during a recession, spending slows by a few percentage points, and more in some areas than others. The statistics are measuring and reporting the average - and it is entirely possible for one business to be going "up" while others are going "down."

You can also say that you are viewing this economic period as a challenge and opportunity, rather than a threat. "We are going to make sure that it's easier than ever for our customers to find us, understand what we're selling, and buy from us," you could say. And then you can make good on that promise.

3) Intensify your marketing efforts. I know, this sounds like the advice that magazine publishers used to give advertisers, back when magazines were the main source of leads. They did all sorts of studies proving that the companies that were more aggressive about their marketing during a slowdown were likely to be more profitable after the slowdown.

Whether you believe the studies or not, there are many advantages to being more aggressive during a slowdown. Your message will be more likely to stand out, since there will be fewer people spending money on marketing. You will attract the good employees who get laid off when your competitors fold. If you thrive during a recession, in addition to gathering in the best people, you will also have gotten all the inefficiencies out of your business. You'll be a fearsome competitor - if not king of the pond. The odds on someone successfully coming into your industry after things improve, and taking business away from you, won't be very good.

4) Streamline your selling machine. This is where real, measurable gains can be realized. I don't care what you sell or how you sell it, your selling process can be improved. I'm not talking about the boilerplate, rah-rah, manipulate-the-customer advice you will get from a sales consultant. I am talking about lasting and significant changes in the way your salespeople sell and the way you support their selling efforts.

How your salespeople sell. Salespeople are out there every day talking to customers. What happens in that conversation will determine if the sale is made - or lost. The salesperson has to answer the customer's questions to the customer's satisfaction. The salesperson has to make it easy - not difficult - for the customer to buy. The salesperson needs to smooth the road to the purchase. What often happens is just the opposite - the salesperson says and does things that raise red flags in the customer's mind, and the sale is lost. Salespeople must be made aware of the mistakes they're making and must be taught how to eliminate them. Red flag mistakes include:

• Negative, offhand or "off-the-record" comments made during the conversation, such as, "I am looking for the answer here, but 'they' never give me the information I need, so I'm not sure I will find it." "I've told 'them' over and over to provide this information for you, but 'they' haven't done it." "We are about to be bought by XYZ Conglomerate." You can imagine the red flags this raises for the customer, who is now convinced that the company is not supporting the salespeople, or is distracted by a pending acquisition - which means that the customers will not be supported, either.

• Interrupting the customer during the conversation. Salespeople are impatient. Time is money. Every minute spent on "unnecessary" activity is robbing them of another commission. If the salesperson thinks he knows what the customer is about to say, he cuts in and finishes the customer's statement. The customer, after being interrupted for the second time, thinks, "This guy is not interested in what I want. I'm not going to get what I need from this company."

• Trying to impress the customer with his knowledge, while failing to answer the customer's questions. While it's important for the customer to know that the salesperson knows his subject, the salesperson shouldn't ramble on about how smart he is. The customer will become bored and look for a way to bail out of the conversation. No one likes dealing with a blowhard - especially one who spends more time proving his expertise than answering the customer's specific questions.

• Failing to get back to the customer in a timely manner. All of us - no matter what business we're in - are selling to people who expect it NOW. If you get an email from a prospective buyer, and you don't return it within a half hour, you are literally sending that customer to a competitor. "Well, they aren't getting back to me, and I want to resolve this today. That other company got back to me. It's obvious who wants my business."

• Failing to understand and support the customer's real buying process. Every purchase involves a series of questions and tradeoffs. A salesperson who engages actively and courteously with the customer as she weighs her options will most likely make the sale. The salesperson who tries to railroad the customer into something that she really doesn't need will irritate the customer during the buying process. If, out of desperation or cluelessness, the customer goes along with the salesperson, and realizes later she's been had, she will tell all her friends she's been had. This negative word of mouth reputation will make it harder for you to make your next sale.

How you support their selling efforts. How are your selling systems? Are you asking salespeople to do things that are basically a waste of time? Even one minute of wasted, duplicative effort can put a frown on the face of your most dedicated salesperson, because that minute could be spent on commission-earning activities.

What happens when a system goes down? Is there someone who instantly springs into action and hammers the IT department until it is fixed? How much time do your salespeople spend on documenting their activity, versus actually talking to customers and making sales?

Do you invest in their ongoing knowledge and training? Today's customers can spend hours on your website - and your competitors' websites - before talking to your salesperson. By the time they reach your salesperson, they may know more about the product they are interested in than your salesperson does. And they expect your salespeople to be familiar with your own website. Don't laugh - salespeople who rely on internal selling resources may only visit the website once or twice a year!

It's very important to have weekly sales staff meetings where you focus on some aspect of your business - the website, tools, products, employee responsibilities, processes, etc. Managers tend to overlook this, thinking that salespeople are learning as they go. But I can tell you that every time I run one of those educational meetings for a client, at least half the sales force has several "Wow - I didn't know that" moments during the meeting. You should never assume the salesforce is properly educated about anything - partly because salespeople tend to pretend they know things they don't, and partly because salespeople want to spend their time selling, not learning.

Don't make the learning tedious; just cover a new subject in depth for a half-hour each week, and encourage them to ask questions.

There's more you can do to make sure you're selling as aggressively as possible during "down" times, including thoroughly understanding your customer's buying process and their new concerns in the more "cautious about purchasing" environment. We'll cover those subjects in future articles.