Know-How Exchange : Strategy

One of the problems many salespeople (and sales managers) face is the peaks and valleys of sales volume. Typically, salespeople tend to focus on DVD sales and referrals during peak times, and resort to less pleasant activities like cold calling during lean times.

Unfortunately, it seems to me that some of the activities salespeople would typically do during lean times are more difficult if not impossible today.

For example, cold calling to folks on the do not call list (which includes me by the way) is now a legal in the United States, and violations of the law can result in substantial penalties (if you're not familiar with this law, you may want to research this before your presentation).

Direct Mail is a proven way to generate business. I am not an expert on the financial market, but I believe there are very strict laws which regulate what salespeople can and cannot say when soliciting investments. I believe most financial institutions require their brochures, direct mail, e-mail, and so forth be approved, and this can result in delays (and can result in substantial penalties, again, if disclosure laws are not properly followed).

The trend today is towards letting the consumer find you, and against aggressive outbound marketing.

Perhaps worst of all, one of the most traditional tools of the salespersons arsenal are references from happy customers. With the recent downturn in the economy, what would your happy references say? Would you have folks who say they have lost half their value in the stock market, but the salesperson was a nice guy?

From an organizational point of view, the salesforce may be made up of young people who have never had to work hard for business, folks for whom this is their first recession.

Your post asked for challenges, not new opportunities. I would encourage you to post a second question on marketing profs which asks about the new opportunities created in your industry by the economic downturn. I would also encourage you to get out your credit card and spend five or $10 to pose the question as an urgent question with lots of points.

Change your mindset. In this downturn, people who have been doing their own financial planning need you more than ever. Instead of talking about the poor economy, your group should be thinking how you can regain their confidence and rebuild their retirement.

Look at the stock market-- Citibank just announced they aren't losing $, in fact they made more money last reporting period than the year 2007.

Tell your group not to commit to surviving-- they need to commit to thriving. Look for ways to make their clients money and win/win situations. We need them more than we every have. They're going to have to stop waiting for the phone to ring and get out and take a consultative approach and demonstrate their trust and their worth.

Stop saying "bad" or "poor" its just different.

To add to my post.

Today I spent time with a company owned by Warren Buffet. Their sales are down but they are investing heavily in faciliites and equipment. Why? Cause interest rates are down and they can. And they know-- this recession is temporary. Now, while they have laid off staff-- is a great time to take idle lines and gear them UP not down.

This is not new for them. This is the same strategy they used in the recession of early 80's. They bought out failing competing businesses (manufacturing facilities). This was before Buffet owned the company -- probably one of the reasons he bought the company. (His concept is to buy well run businesses and let those same managers run their businesses.) After the downturn, their competitors knew they were out maneuvered. All those facilities that could be bought pennies on the dollar, were gone-- already purchased by their main competitor. They knew they had to gear up again and demand was increasing. Except the interest rates were up and unattractive. And there was nothing to buy.

The competitors were gearing down at a time they should be gearing up.

Somebodys buying! Go find them!