How to Prevail in a Soft Economy
April 1, 2004

Everyone is concerned about the soft economy. We look at the daily news and see market indicators that show how marked productivity is off. We see core industries such as steel in severe decline. Unemployment rates are increasing.

Economists are teetering with whether the US economy is in, or about to enter into a recession. Alan Greenspan continues to command as much or more attention than even Robert Downey, Jr.

Times like this remind me of a piece of advice given to me long ago. When in challenging times, remember to work to improve the areas you can control.

It is simply to easy to give up control, and hope that the stock market, world economic trends, The Federal Reserve, or even Congress will turn your firm's fortunes around. While these elements can contribute to improvement, (and should indeed be watched carefully for trends), stay in control and confident by looking at areas you control.

Otherwise, it is simply to easy to say, "things are bad all over". Or, "We're going to continue to do everything the same way as always. It's not our fault that sales and profits are off. Look at how badly off our customers are!"

Baloney. Quit being a victim. This is like the sales rep who knocks off early on Friday because every other rep does, and because he figures customers don't want to see sales reps anyway. In fact, he could probably get in some good face-to-face calls because his prospect is not preoccupied with other salespeople.

HTP [How To Prevail] Tip #1: Find ways to improve your customers' bottom lines. The fact they are having profit challenges means they will be more receptive to ideas that can measurably improve their sales, or reduce their expenses. Instead of agreeing with them about how terrible business is, ask for the chance to learn more about their business. By doing so, you will become a far more valuable asset in the near and long term.

HTP Tip #2: Cover your flank. Good competitors are trying to make up for lost business in their customer base. Define the value you are providing your customers. Communicate this value and gain their agreement about what makes your company distinctive to them. Otherwise, the competitor has a much better chance of shaving your business, and margins, by offering the easiest fruit. (You know what that is, right?)

HTP Tip #3: Improve Sales Productivity. I am amazed at how many sales territories are made up of accounts that are totally meaningless and utterly non-strategic to the rep or the company's profitability. While soft economic times may promote keeping customers, it is often to the company's advantage to "reassign" low potential accounts to "The House," or to find alternative ways to service them. Doing an honest sales territory audit, ridding it of accounts that are low potential and time wasters, will make time available for calling on customers and prospects who could make up the 20% of the accounts who represent 80% of your business (according to the Pareto Principle).

HTP Tip #4: Be honest with yourself. Every sales rep has "rainy day accounts". These are accounts that our kept forever, in the event that business drops off. Well, business may have dropped off over the past few months. Honestly, how many of these "rainy day accounts" have fallen into action, and are now being called on diligently and intelligently by the assigned salesperson who has had it in mothballs for the past five years? My suggestion is to look at the accounts that have potential, (not the low potential and time wasters mentioned in HTP Tip #3), and make sure that the assigned rep is not waiting for a disaster to start calling on them. By that point, the rep would be so stressed out and panicked that he probably couldn't effectively call on a new high potential prospect anyway.

HTP Tip #5: Piggybacking on HTP Tip #4, be sure to have clear expectations of the rep in order for him to maintain a prospect in his territory. Reps simply need to know what is expected from them in order to maintain a prospect.

This could include frequency of contacts, depth of contacts, having complete knowledge of the prospect's operation as well as corporate and personal objectives and targets, etc. Of course, managers, this means you have to ensure that the assigned rep is pursuing relevant activities in order to earn a position for him and your company as a high potential new supplier.

HTP Tip #6: Remember, it is easier to sell an existing customer an existing product from your line. Look at the core products in your line that most customers use. Audit each existing customer's purchases to determine if there are "gaps" in what they purchase from your firm. You can chart these products, and create a grid for the reps to check off what is being sold, (or not being sold), to their customers. This becomes a fun way to identify items that often are ignored, or even forgotten, by both your reps and your customers.

HPT Tip #7: Be nice to the receptionist. I am amazed at how many sales reps ignore the receptionist at their accounts. First, it is common courtesy to be nice and make eye contact with people. Second, the receptionist is the "gatekeeper" to the customer and prospect. He, or she, can make or break the experience the sales rep will have with the client.