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IS YOUR SALES TEAM RECESSION-PROOF?

By Lon CunninghisDecember 13, 2022February 8th, 2024No Comments

As we enter a likely global recession and continue to deal with the aftermath of
the pandemic, we are seeing some alarming trends in our 2022 Sales Challenges
Surveys. These trends suggest many organizations are unprepared for the chaotic
and uncertain market conditions that lie ahead.

In our surveys, over 750 strategic salespeople across multiple industries
globally pointed to three significant sales challenges.

Challenge 1:

The top sales challenge was “Getting Powerful People to Influence the Outcome in
My Favor.” 

When we probe this more deeply, strategic salespeople report having more
difficulty creating and collaborating with client contacts, especially at senior
levels, which has only been exacerbated by the need to sell virtually.

This was confirmed in an October webinar, when attendees were polled on how much
success they had creating Partner Allies in a virtual world. The results showed
63% had limited success, 38% had the same success as in-person, and no one said
they had more success.

When salespeople are uncomfortable with relationship strategy, especially in
virtual interactions, we see them resort to more transactional (level one)
selling where they focus primarily on their solution and price. This behavior
only acts to accelerate commoditization and add pressure to deal margins.

Challenge 2:

The second most reported sales challenge was “Getting a Prospect to Consider
Creating Budget for Our Offerings.” 

Said differently, salespeople are having difficulty creating demand. As a
result, many are resorting to a reactive, “wait for the client to ask,” or
worse, “wait for the RFP” selling approach.  Some of this is caused by supply
chain and delivery issues, where salespeople say they are hesitant to position
solutions they worry cannot be delivered.

We all know what happens to win rates and margins when a sales organization is
purely reactive.  More importantly, this selling approach requires enough market
demand to achieve individual and organizational goals, and many clients are
already reporting reduced demand. 

Challenge 3:

The third most reported sales challenge, I believe, is the most alarming –
“Prioritizing My Time Among My Many Accounts, Sales Opportunities, and Leads.” 

Salespeople report being constantly pulled in multiple directions and say they
oftentimes do not have the ability to do the things that are more difficult and
take time, namely relationship development and demand creation!

But it goes much deeper than that. Many report that the sales execution
processes they were using prior to the pandemic are no longer as effective, or
do not even work at all. Yet many organizations continue to focus only on WHAT
they sell vs. HOW they sell.

The complexities of strategic selling, especially across multiple stakeholders
both in the client and in your own organization, require a common and repeatable
process for sales execution excellence at every stage of the sales process.

There is additional bottom-line pressure today caused by issues like the rising
cost of materials and expenses, supply chain shortages, wage increases and
employee churn, pricing pressure, etc. Much of which is out of our control!
Tackling these sales challenges NOW is critical to producing profitable sales
and meeting targets.

Personal Challenge:

There are three critical questions you should confirm with your sales
organization to help determine where to focus your coaching and development
efforts:

 1. Do we have a repeatable process and focused approach for creating new
    demand?

 2. Can the team successfully create and leverage important relationships to win
    deals?

 3. Have you examined each phase of your sales process, from Targeting to
    Fulfilling, and optimized it for today’s selling environment, and does
    everyone know their role in successfully executing it?

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