Five tips for generating predictable revenue in an economic downturn
Even in economic boom times, generating consistent, predictable revenue is challenging. However, during a recession, it gets even harder—something that many organizations quickly realize as they face today’s economic headwinds.
So, how can savvy companies adjust their strategy to maintain strong customer relationships, employee productivity and satisfaction, and steady recurring revenue in difficult economic times?
Here are five suggestions for driving consistent revenue during trying economic times.
1. Revisit your messaging
Your software product and benefits may no longer impact your prospects. Take the word “better,” for example. Potential customers are all about ‘good enough.’ They don’t care about ‘better.’ Better usually means more expensive and riskier. While “better” may have worked in favorable economic climates, it’s now falling completely flat.
To find out what messaging will resonate, talk to your current customers. Ask them why they’ve stayed. Find out why they haven’t churned when others have. Then use that language when reaching out to prospects.
2. Reconsider your ICP
During an economic downturn, your Ideal Customer Profile may shift, sometimes quite significantly. Ask your prospects a key question: “Are you spending on anything right now?” The answer will most likely be yes, and that response can provide a valuable jumping-off point for reframing your ICP and their “why we buy.”
3. Invest in ops
Most companies are making a big mistake when it comes to RevOps and Sales Ops; they’re simply not investing enough in those areas. But the power of RevOps is what it enables sales to do, and it provides the structure that sets reps up for success and delivers the “diamonds in the data” that should inform your selling motions. Combine data from your CRM with some of the more anecdotal data you’re hearing from your prospects, and you’ll get some real insight.
4. Diagnose your sales process ailments
Many sales teams are understandably focused on hitting their numbers. But when your forecasts miss the mark, what do you do then? You need to start digging deeper into your data and your metrics to diagnose where the problem is. Say your numbers are down. Why? Is it a lack of pipeline? Lower conversion rates? Longer sales cycles? You can’t just focus on the end result. You need to diagnose the cause of those results.
Once you know why numbers are down, you can then take steps to address the root cause(s). Otherwise, you’re just guessing—and setting your reps up for continued failure.
5. Use data to drive behavior change
You can’t change a result without changing a metric, and you can’t change a metric without changing behavior, process, or skill. Even providing your reps with the most accurate and timely data doesn’t guarantee they’ll follow best practices for closing a deal.
The “sales cockpit” idea, or putting all data in front of your salespeople, usually doesn’t work. Moving from the “cockpit” mindset to the “guided selling” process helps reps bring data forward in the most relevant and useful way possible, helping them interact with prospects more effectively.
When the going gets tough, keep on going
While there’s no doubt that buyers and sellers everywhere are feeling the pinch of an economic downturn, thriving is absolutely possible in this market. However, it requires taking a moment and thinking through key aspects of your sales strategy, including your messaging, positioning, ICP, and metrics.
