Quality versus quantity is the key to selling in tough times!

The number one question I am being asked at the moment can be summarised as, “With the tightening up of money, all we seem to hear from our clients and prospects are variations of “NOT RIGHT NOW!”

How are we supposed to sell in this current economic climate?”

One of the most effective means of solving this “not right now” problem is to go deep rather than wide!

Go Deep Rather Than Wide Most business owners, CSOs (Chief Sales Officer) or sales managers’ approach to the current wave of economic uncertainty has been to dial up “sales activity”. Make more sales calls!

This may not be the most profitably productive answer to selling in the current market. I recently listened to a very insightful interview with sales “Guru” Neil Rackham the researcher and author of the world famous SPIN Selling. He was asked by the researcher what one should do, and how one should go about selling in a turbulent and economic downturn.

Here was his response, (paraphrased) “In tough times there are two things one needs to do. Firstly focus on quality as opposed to quantity, and secondly be aware that in a downturn people are focused more on the fear of loss than the desire for gain!

Neil reflected this thinking by recalling the old IBM slogan “No-one ever got fired for buying IBM” and went on to explain how even though IBM products and services were vastly more expensive than their rivals, the “peace of mind factor” kept sales buoyant even in the toughest of times and markets.

The challenge, as Rackham puts it, is that when things get tough the sales manager’s immediate response is to turn up the heat and ramp up “sales activity”.

The obvious way out of this hole is to “play the numbers game” and make your salespeople see more people. “If it took us 20 calls to get an appointment, we’ll now make 50 calls” seems to be the logic. “Make them do more!”

Whilst on the surface this approach would seem to make perfect sense, as a long term strategy it has huge drawbacks. The top two being, sales executive burn-out, and the second being that “pressure flows down hill!” In other words when the salesperson is under too much pressure to deliver; all too often their anxiety spills over to the customer, resulting in a “not right now” response.

The other big problem with this approach is that because the salesperson is so busy, busy, doing, doing, they themselves replace their good intentions to do quality work and end up taking short cuts all in the pursuit of quantity! So...

1. What does a focus on quality (productivity) as opposed to a quantity (activity) mindset really mean?
2. How will a quality outlook translate into the current sales environment?
3. Most importantly, how can one translate this “quality versus quantity” viewpoint and make it applicable to generate sales right now?

Do fewer better! When prospecting for new business opportunities either with existing customers or new prospects, your salespeople must be able to complete a Value Assumption Proposition (VAP).They must have done some primary due diligence and be able to answer some or all of the following questions before even fronting up or making the sales call. In tough times this exercise becomes the price of admission!

• What have you learned about the company?
• People research: Do we know who all the “players” are?
•  What are the critical issues they are facing right now?
• What is the evidence that they are facing these issues?
• What are the potential impacts of that issue/evidence?
• What are their current constraints in solving that issue (in relation to time, people money)
• What is our answer for solving the issue?
• What are the current market trends in their area
• What do we know about other companies that operate in the same space as they do?
• What are their key strategic initiatives?
• What would their decision constraint criterion be in relation to time, people money?
• How will we be in a position to help them?
• What questions do they have prepared to elicit needs?

Whilst this list is by no means exhaustive, it is a terrific start. With existing customers or key accounts, here your sales opportunity is to expand your influence within the client organization and earn a higher percentage of their business.

According to the 2008 CSO Insights Sales Performance Optimization Report only 33.6% of CSOs interviewed were able to farm additional revenues from their existing customer base, and that was last year during a comparatively good market!

What percentage of revenue from your existing customers are your sales people currently leaving on the table? Your salespeople need to ferret out other sales opportunities that they have so far left lying on the table within that account.

To see how much your people know about their key accounts, have complete a VAP prior to their next visit. Before you dismiss the VAP idea as all to hard, ask yourself the following question, “If my sales people completed a VAP prior to making a sales call, how much more impactful will their face to face time be?”

When you consider the cost involved in both making the call and messing it up, proper preparation prior to prospecting, or calling on an existing account using the VAP may well be the most profitable use of your salespeople’s time and your money.