Smart Strategies for When Sales Slump

June 11th, 2011

McKinsey Quarterly Offers a Few Tips

If you're feeling like sales at your small business have reached a plateau (or even dropped), here are some suggestions to get you up and running strong once again.

Hunt in packs

No one likes to cold call. Even gristly sales veterans would rather "farm" existing customers for new business than hit the phone. But every company needs to dedicate time to hunting for new prospects. To rally your sales team, make prospecting a collective effort: designate a day or several days per month in which your entire sales force chases new business.

Think outside the dollar

We seldom question the power of money to motivate. But we should. Not all sales reps are driven by remuneration. In fact, if your company uses money as the only motivator, you'll learn the hard way that financial incentives will only take you so far. Sure, we humans are acquisitive by nature, but we also need meaning. To unlock the full potential of your sales force, you'll need to drill for deeper sources of inspiration. See 'How to Inspire Your Team' in this newsletter.

Don't cut prices

It's the natural and perfectly reasonable reaction when sales are flat: cut prices to stimulate demand. But this strategy can signal to prospects (and current customers) that you don't value your product. Further, every time you cut prices, you dilute your brand (unless you're Walmart) and risk commodifying your product. Project strength on your pricing structure and coach your sales team to emphasize the value of your services.

 


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