You boarded your plane, got seated, the plane pulled away from the gate and you fell asleep. Later, a hard landing woke you and you wondered, "Are we already there?" Yes you are and you slept through the entire flight.
The same thing is happening with the economy. While you were sleeping, distracted by Russia invading Ukraine, baby formula shortages, off-the-chart gas prices, a migrant surge across the southern border, mass shootings, supply-chain shortages, and runaway inflation, the recession crash-landed and it's here.
The two biggest tell-tale signs are new home sales were 100,000 or so units below expectations for April, and the first of many interest rate hikes have been enacted. And the biggest sign is that government officials continue to tell us that there is nothing to see here, the economy is booming and there will be a soft landing from inflation. Sure.
While I'm citing events in the United States, there is no doubt that this will be a global recession.
So what must you do to prepare your sales team and how can you leverage the effects of a recession?
You'll know the recession is real when in the next 90 days, sometime between now and the end of August 2022, the first domino falls and a major corporation announces they will layoff thousands of workers. Others are sure to follow. Then come the spending freezes. This trickles down to mid-size and small businesses and while this is taking place, consumer confidence plunges, people stop buying things, which reinforces the decision to stop corporate spending and vindicates them for the layoffs. We're gonna get clobbered!
You can leverage all of this by hiring salespeople. That's right. Resist the urge to layoff salespeople and instead, take advantage of what will finally be a surplus of good to great salespeople. They have been in very short supply for several years and this will be one positive consequence of a recession. Gobble them up, upgrade and smart-size your team and use OMG's Smart-Sizing tool as part of a sales team evaluation. Use OMG's sales candidate assessments to distinguish the sales winners from the imposters because past success is NOT a good predictor of future success in sales. You should already know that from experience otherwise your track record would be better and all of your salespeople would be meeting or exceeding quotas.
You must prepare your salespeople so they can convince people who are on a spending freeze to spend money despite the freeze. This REQUIRES that they be effective at calling on, reaching and engaging actual decision makers as they are the only people who can override the spending freeze. In addition to developing their skills at engaging decision makers, they must be equally effective at using a consultative approach, selling value and using a sales process optimized for a value-based, consultative approach. Why consultative? Selling value doesn't work well outside of a consultative approach. Not only that, but salespeople struggle to achieve differentiation outside of a consultative approach.
What could go wrong?
OMG has evaluated and assessed more than 2.2 million salespeople and the data shows that taking a consultative approach is where salespeople are LEAST effective.
As you can see, only 11% of all salespeople have Consultative Selling as a strength, only 28% have reaching decision makers as a strength and only 31% have selling value as a strength. But it's worse than that. Weak salespeople make up 50% of the sales population. Weak salespeople don't sell this way! The next graphic isolates weak salespeople - the bottom 50% - only.
Only 1% of weak salespeople (half of your sales team!) have Consultative Selling as a strength, only 10% have reaching decision makers as a strength, and only 4% have selling value as a strength.
This is why half of your salespeople don't hit quota! But over the past several years they have gotten by because they have been in order-taking mode. With demand dropping like a rock and order-taking going away what will you do? These are the five steps you should take.
1) Evaluate Your Sales Team to determine who will be part of your future and who was part of your past. Determine the exact competencies in which they will require training and coaching. Better understand where the bottlenecks are and what it will take to increase your win rate.
2) Assess Sales Candidates as you hire better salespeople.
3) Customize and Optimize your Sales Process for a Consultative Approach
4) Get your sales managers trained and coached to be effective and consistent at coaching up their salespeople
5) Get your sales team trained to hunt decision makers, take a consultative approach, and sell value.
The economy might make a crash landing but there is no reason you or your sales team need to do the same.
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