While a rising market-demand raises revenues from sales for all market players, an economic recession bares weaknesses of your competitors. Yes, companies will be affected by a reduction in demand for their products and services in ways well beyond their control. So while the natural instinct is to retract in the face of declining sales, it is actually critical to increase your sales efforts in order to gain market share during a recession period. Certainly you should speed up invoicing, improve your credit control policy, clear out surplus inventory, develop more ‘strategic suppliers’ for your benefit, and reduce your costs rightly. In addition: When faced with a recession, fire your low-performing salespeople and increase your prospecting efforts with the revenue gained by sacking the low performers. Precisely, your sales efforts should be doubled or tripled to meet ‘head-on’ the unexpected dip in the market demand.
To make it more clear, while you can increase your market share in a recession period, it may not be possible to increase your actual sales volume. There simply may not be as many sales orders to be won. But increasing your market share is always a more achievable goal in a recession period and ultimately far more important than increasing your actual sales. And, increasing your market share is something over which you have much more control. It is more achievable because the natural instincts of your competitors will be to reduce their marketing and sales efforts in response to their need to cut costs, just as your immediate response will be. But if you know where and how to cut your costs rightly – and where to actually increase funding and sales efforts – you will be able to take advantage of your competitors’ mistakes and add new customers to your book of business at your competitors’ expense.
You simply need more ‘new business’ in a recession period in order to make up for the lost business ! The basic truth behind sales lead generation is that most salespeople are not very good at cold calling and most of the rest don’t like doing it or they do not have the time. Most salespeople prefer to work on warm leads and feel that switching back and forth between cold calling and account management is distracting and inefficient. But, by increasing your market share – you will get whatever the market has to offer despite the on-going recession and also be in an ideal position to grow in profits much earlier than your competitors do, when the economy rebounds or gets out of recession.
Call or write to us today at – Rambuna Consultants – so that we can discuss how to increase your company’s market share aided by our business consulting services. The Author is equipped with ‘professional experience’ in sales & marketing – of more than two decades gained from working in competitive markets located in India and overseas.