Creating opportunities in tough times

by Tom Reilly

So, what’s really going on in the business world during tough times? I talked to a customer yesterday about his sales force and a specific problem he's having: He has mostly new salespeople who have never sold in tough times.

Nationally, 60 percent of salespeople have never sold in a down economy. They cut their sales teeth in a different business environment. For these neophytes, selling during the past decade has been more about responding to opportunities than creating opportunities. Things have been so flush for so long that these rookies have been reacting to opportunities that customers generated on their own and presented to vendors. 

In short, they do not have a lot of experience creating new sales opportunities. They haven’t had to use all of their creativity to dream up opportunities and sell customers on these ideas.

An additional problem is that 70 percent of today’s CEOs have never led a company in or out of tough times. It’s amateur hour! Or, the blind leading the blind. Their knee-jerk reaction is predictable: They cut every expense across the board regardless of the efficacy of the expense — advertising and promotion are particularly relevant examples. 

Why would you cut off a revenue stream when you are suffering from lower revenues? Inexperience is the culprit, coupled with a short-term, expense-oriented mentality.

Here’s another problem. What about the other 40 percent of the sales force — the experienced, old dogs — who have been here before? At any time, 25 percent of a sales force is in a comfort zone. That’s one out of four salespeople. Salespeople get stuck in a comfort zone when they stop doing all of those things that have made them successful in the past. For example: cold calling, selling new products to existing customers, selling customers on new concepts or new ways of doing business. In other words, making sales vs. responding to opportunities that already exist.

This, coupled with the 60 percent statistic I listed earlier, means that the best case scenario for any company is that 30 percent of a sales force knows what to do in tough times and is actually doing something positive about it. Fewer than one out of three salespeople are out there with customers creating opportunities in tough times. The other 70 percent is wondering what to do. During tough times salespeople reduce face time by 38 percent! They stop calling at the rate they call in good times. So, what’s the answer?

Managers — experienced in tough times or not — must get salespeople to do the following if they want to sell their way out of tough times. Increase face-time with customers by 25 percent. Create opportunities with customers where opportunities do not presently exist. Ask questions that cause customers to think about what they will do when times get better. Ask, “What are you working on today for tomorrow?” or “What will your first priority be when the economy shifts?” Sell customers conceptually on the notion that your product or service is precisely what they need during tough times to help them deal more effectively and efficiently with their problems. Who better to help the customer than an optimistic salesperson who works for a stable company that has weathered many storms in the past?

In short, managers must coach salespeople to develop a different mindset for tough times. Get out there and create opportunities vs. waiting for opportunities to come to you. They won’t. Take some initiative. Get creative. Be positive. In tough times, half the battle is in your head; the other half is on the streets.

Tom Reilly is a speaker, author and president of Tom Reilly Training. This article is an excerpt from his book, How to Sell and Manage in Tough Times and Tough Markets. Visit his Web site at www.tomreillytraining.com. 

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