Selling in a recession (Part 2)

Article written by our GBO London member, Moeed Amin, founder of Proverbial Door

Last week, I hypothesised that we may experience a recession. This was not a prediction, but since a lot of the signs pointed to a high likelihood, it is our job as leaders and sales professionals to prepare for such an eventuality. You don't want to be caught off guard and find yourself in the dangerous place of being in "reactive mode".?

Well, it looks like the likelihood of a recession is a lot higher. According to the FT, the UK economy shrank in March by 0.1%. Stagflation looms, which can cause even more anxiety. US inflation remains at a 40-year high of 8.3% CPI increase in April. Not necessarily a marker of a recession but a strong indicator of potentially weaker consumer spending in the future which can lead to a recession.?

So, what to do???

In my last email, I listed 7 things that you need to act on in order to set yourself up for growth in a recession. Whether you are a sales leader, company founder, or sales professional, you can apply these points to your advantage.?

There are 4 more things that are vital to protecting your business in a recession and setting yourself up for success. The first of these 4 may seem obvious, but I would wager that very few of you actually have this ironclad.?

Get brutally clear on your value proposition and why your buyers should buy

While your existing value proposition may have served you during the "good " times, they are unlikely to serve you in a recession. Your buyer's needs and priorities will change and you must ensure that your value proposition also aligns with their changing needs.?

In a recession, timelines shorten. A lot of people go into "survival mode" and with that comes all the fear-based mechanisms in our biology: cortisol levels go up, more adrenaline is being pumped, our eyes and brain focus on smaller points and we make decisions more out of avoidance of pain rather than growth towards a brighter future. It is important to appreciate this. Your buyers may be focused on growth, but when it comes to their spending habits, they will be dominated by fear and avoidance of pain.?

This means that their evaluation of ROI will dramatically change.?The first way that this changes is what I call their "timeline of acceptable ROI". In a recession, you must align your ROI with their fiscal period. That means it will no longer be acceptable for you to demonstrate ROI that is beyond the 1 year time horizon (or the buyer's fiscal end period, whichever comes first). Any further than that and your solution will quickly become a "nice to have" and will be deprioritised. So, the first thing you must do is review your value proposition and make sure that you have a strong case for delivering value within that shorter timeframe.?

Secondly, some sellers make the mistake of relying on others to lead the adaptation of their value proposition e.g. marketing or even company founders. This is a mistake. Sales are far closer to the buyer community than any other function. You as the seller must own this. In my last email, I outlined the importance of getting closer to your buyers and understanding how their buying patterns will change. You must leverage those conversations to gain a deeper understanding of what value propositions will remain attractive to them in tougher times.?

Thirdly, now is the time to ensure that you can?clearly articulate?your compelling value proposition. That means you need to become extremely quantifiable in what you are proposing will be the benefits of your solution. Don't rely on features or past successes. You need to show how the buyer's life will be better with you in it! The clearer they are on this, the more confident they will feel to place their reputation on the line for you. Even a C-level decision-maker will be challenged (often by the CFO) for?every single line item.?Give them the tools to help make this easier for them.?

Heart as well as head

Monetary value?is table stakes. They are the minimum requirements for you to have a constructive discussion with a buyer. In a recession, you need more. You need to show "personal value" to the buyer. Personal value will strengthen the buyer's resolve when they make the case internally and/or when they are challenged.?

Personal value comes in the form of personal desires, fears and values. Take the time to understand what they are for the buyer and why they would personally value your solution. If they are a client, learn why they personally like working with you and using your product. There will come a point when, even with a strong quantitative ROI, your buyer may still be challenged and the difference will come down to personal value, not business value.?

I am sure this will surprise many of you reading this. Gartner conducted a study years ago which found that:?

·????????Personal value has 2x more impact than business value

·????????68% of buyers who see personal value will pay a higher price

·????????71% of buyers who see personal value will buy a product?

Their conclusion??Emotions matter more than logic and reason in a B2B buying process.?

Protect your sellers

I have been known to repeatedly say this: sellers are at the sharp end of where your company touches the buyer community and market. The flip side is that non-sellers are not as close to the market. They don't interact with buyers as frequently. That means, through no malicious intent, they will not appreciate the magnitude of a tough environment in a recession. I am not saying they are clueless, I am merely stating that they will not appreciate it as much because they are not in direct contact with buyers and the soup of emotions at play.?

?They may not understand the need to change approaches and could question such decisions. They may insist you continue with past procedures and processes that may not serve you in a recession. They may have a false belief that thriving in a recession requires only grit and determination. Thriving in a recession requires more. Smarter working is as vital as determination. You will need to take some time to explain to your colleagues what you are doing and why it is important. Share the insights you have gathered from buyers to validate your decisions and invite them to support you in this difficult period.?

It is also worth noting that you will need to do this more than once. Recessions are volatile times and, as I stated earlier, people are driven by fear and their biology focuses them on the short term. This means that their memories will become shorter. They will often forget the magnitude of what you have shared with them, or at the very least their understanding will have diminished. Make sure you plan to inform them of the situation and remind them of the support and understanding you need from them.?

Be the beacon of light

I am nervous about sharing this one because it is probably the hardest to accomplish, yet it is the most important.?

In times of uncertainty, there are things that we as human beings value more, for example, a stronger connection to those we love. We are also drawn more to things that we are familiar with because it gives us a sense of certainty. In business, there are usually 3 things that we seek:

1.??Guidance or advice

2.??Confidence

3.??The ability to see more clearly into the future.

Sales professionals mistakenly believe that senior decision-makers are infallible, that they somehow have all the answers because they always seem so confident.?The truth is that they are regular people who make mistakes, are uncertain and will be unsure of themselves during tough situations. Their knowledge and experience may better support them, but that does not mean that they are not nervous, worried and unsure.?

Your buyers greatly value people whom they trust to give them sound advice, give them confidence in their decisions and provide them with the ability to better see into the future and identify potential pitfalls and solutions. In recessions, they need such people even more.?

That is where you can potentially step in. It is also incredibly hard to become that person. This may sound like the Challenger methodology where top sellers lead with insights. It is, but it is also so much more!?

There are 4 levels of advisers:?

1.??The Datalist - you provide information or data that is clear and linear. You present the facts for someone to understand and draw conclusions from.?

2.??The Insighter - you not only deliver the facts, but you also help the recipient by giving them the insights and conclusions from those facts. You provide them with recommendations to help them make the right decisions.?

3.??The Guru - is someone who is deeply knowledgeable and experienced. They can quickly identify what can stand in your way or can help you, and confidently advise you on the best path forward.?

4.??The Sage - this is the ultimate level of adviser. The Sage is more than a Guru. They have all the knowledge, but now they can help you see into the future. They can help uncover pitfalls that you were either not aware of, or underappreciated the magnitude of its impact. They are able to effortlessly and gracefully guide you through a storm as if they are a part of it and the storm bends to their will. With a sage, you have no fear and are fully confident in their ability to help you get to where you need to go.?

Becoming a sage is tough, but that is the level that you need to strive for. Buyers are just as nervous, just as worried and just as fearful as you are. The direction or aspects of what they fear may be different, but the magnitude of their feelings may be larger given the level of responsibility that they have. They need sages to help them see a path forward and help them navigate through tough times. They need someone that they can trust.?

You may not know this, but as a salesperson, you speak with more people like them in a week than a typical buyer will speak to their peers in a year! You hold a wealth of information that, if presented correctly, is invaluable to your buyers. You can help them avoid painful mistakes and give them approaches that you have seen work successfully with others in their position. I have interviewed 422 B2B buyers over the last 15 years and the most common source of information for them to learn how to become a better professional is their peers. You are the conduit of that wealth of information.?

This is the time for you to position yourself as a person of trust. DOn't just sell to them, help them make better decisions. Help them navigate their fear, uncertainty and doubt (FUD). Help them see things that they are probably not aware of. Help them "see around corners". That may sometimes mean that you don't sell to your buyer right now, but help them with what they will truly value and play the long game. This may go against your sales instincts but your pipeline should be portfolio play with a mix of short and long-term opportunities. Hopefully, all your opportunities will not be long-term plays as that would be irresponsible of the goals that you hold for the business.

It is tough to do this part justice in a newsletter as this is a lifelong skill to master, but hopefully, you get the idea. If you want to learn more about this then do contact me as I would be happy to share more.??

Remember that recessions are temporary and growth always (so far) follows. There are so many examples of individuals and companies that have grown exponentially during recessions because they made the right decisions and took bold steps toward those decisions. I personally had some of the best sales successes during the 2008 recession and I was not the most talented salesperson. If I can do it, you certainly can.?

Pictures by Bruno Kelzer , ?Josh Appel ,?Luke Chesser , Towfiqu barbhuiya ?on Unsplash