Selling through a downturn

In a world where high inflation and economic volatility have become part of our reality, it’s abundantly clear that the next few months (and perhaps even years) are going to be severely difficult for many businesses. And if you’re in the business of selling, it has the potential to be particularly painful.

In the middle of an economic downturn it becomes simultaneously harder to sell, and of vital importance that sales are made. Whether you have a dedicated sales team or are having to make pitches with little experience, it’s important to think about what’s changed and how it might affect your business.

So how do you sell things during a recession? In a previous life, I picked up a lot of the skills required by weathering the storm of the 2008/2009 recession. And although the circumstances and repercussions of the current context are wildly different, there are some learnings that still hold weight:

Timing is your friend

For certain things, moments of crisis accelerate trends that were already in flow. In the short term, businesses will be more nimble and reactive, which may mean they need less time to make a decision. If what you’re selling helps clients tackle immediate challenges, now is the time to pounce.

Uncertainty is difficult to forecast

Uncertainty makes it difficult to price investment, making trust even more important than before. Sales people can no longer rely on their relationships.

Instead, concentrate on the things you can control. Do the groundwork as early as possible, do the preparation, do the research. Be clear on the outcomes you want. Understand your clients’ world and how your product can fit in it.

Positioning is everything

It’s self-explanatory that in times of crisis budgets will change — some will shrink and others will disappear altogether. However, some budgets will become even more important and may even increase. Think about what the company you’re pitching to needs and why. Positioning yourself as the answer to that need will be vital to closing the sale.

Get flexible on payment

During the 2008/09 recession, it became commonplace to get creative when it came to payment. If you are cash rich, consider what allowances you can make so that payment terms don’t become a barrier. If cashflow is tight, get creative with how you can incentivize clients to pay you sooner. Don’t forget that cash is not the only currency — especially for smaller businesses! There is no downside in taking payment in services / products your client provides if that’s of value to you. Work it out in the details, and help them find a way to make the sale happen.

Brush up on the basics

With lots of people steering clear of long Zoom meetings, it’s important to make sure you’re getting the basics right.

• Speak to the right people. Visualise who your perfect client is; speak to them.
• Listen when people tell you things — play it back to let them know you’ve heard. It’s key to get a deep understanding of your client’s situation and where they need to get to.
• Be rigorous. Don’t rush ahead.
• Be humble. Let the client know they’re still in charge.
• Don’t assume. Check with the client if you aren’t sure. It shows you’re interested and builds a basis of mutual understanding.
• Help and reassure. They might have questions and doubts — pinpoint those and respond. Make them an ally.
• Engage and support the client as they get closer to a sales decision. Be emotionally aware.

Get truly client focused

At times of struggle it can be easy to focus on how things are affecting you and your business. However, the most effective way to sell through a downturn is to become 100% client focused in everything your company does.

Acknowledge that clients will be experiencing turbulence, and realise that it means you must show up with even more empathy. While your clients are busy navigating that turbulence, you must display even more rigour and insight on how you can help, all while doing it virtually. Make sure that the meetings you have with a client are useful and relevant, regardless of ‘the sale’ — it makes the conversations better for both of you.

Client-centred thinking is the core of what True & North do, and so we developed a three step method to make client centred sales strategies and tactics simple to implement whoever you are: care (showing your client you deeply understand their world), co-creation (exploring and testing solutions with the client), and consensus (reach agreement on solutions by addressing risks and planning the next steps together). If you fulfill these three things, you should be able to continue selling in even the worst of times.

This too shall pass

It might seem hard to fathom right now, but eventually today’s problems will be no more than a lesson learned and an anecdote we share. It’s a useful thing to remember when things seem insurmountable: this too, shall pass.