Eight Ways to Boost Business Development in a Soft Economy
7/12/2006
by Adam Bujanowski, Marketing Strategist, NuRelm

Our budget was cut." "Can you give me a better price?" "I'll have to run it past management." "We don't have a need for what you are currently offering."

These are all too common responses heard by business development people today. Is it that people and businesses simply aren't buying, or is it just harder to find the right hot buttons when you call a prospect? Either way, it is more difficult to sell in a soft economy than it ever was. With the advent of the Internet, competition is global and customers have more choices, more options and more price points than ever before.

It's about selling on value. Your wares have to add value if you want your message to resonate with your audience.

Customer relationship management systems do much to create and foster relationships, but a friendship alone will not sell your wares if management doesn't approve the purchase order. When dealing with the decision maker, and to find ways to get to him or her quickly, follow these eight techniques to avoid downward price pressure, close more sales, and boost the bottom line.

Focus on the benefits. People buy benefits, not features. What's the difference? Did you buy your new car because it has gas-filled shocks vs. hydraulic shocks (feature), or because it has a smoother ride than similar models (benefit)? Benefitize the features to make your message boom! The car has the smoothest ride in its class because it comes with gas-filled shocks instead of hydraulic shocks.

Make them listen. The first thing, after you introduce yourself, that your message should emphasize is how you/your product/your service can save the prospect money, or increase sales. Offer hard evidence as testimony to your message: return on investment valuations, case studies of customer successes and customer testimonials. Your message is intangible until you introduce these items. Once it is tangible, it becomes real to the prospect.

What is your unique selling proposition? How and why are you different from competitors? That is the unique selling proposition you offer to prospects. No one else has it because it is unique to you. In addition to perking some ears, you uncommoditize your wares. If you are seen as a commodity, undifferentiated from all other competitors, it is almost impossible not to succumb to downward price pressure, especially in the current economy.

Personalize the experience for the customer. Whether it is B2C (business-to-consumer) or B2B (business-to-business) selling, personalize and create an individual experience for the customer. Use first names. Nothing sounds sweeter than the sound of your own name. Do you want to be sold by someone calling you, "Hey you"? Use mass customization to create an experience for the prospect. If you are sending a blanket direct mailer or e-mail blast, merge the file with a targeted database so each touch point with the customer identifies him/her by name, not title.

Identify customer needs with a specific solution. Tweak your marketing materials to a specific audience. Why? Retail establishments don't buy your cleaning services for the same reasons that an industrial manufacturer does. Research and establish a distinct message for each major audience you prospect. Cater the marketing materials (print literature, direct mailers, advertisements, e-mail blasts, sections of the Web site) to that message.

Offer customers a referral incentive. Referrals are like gold! It is always much easier to get in to meet with a prospect when you have a name to help open the door to opportunity. Almost any business can offer current customers something for referrals that lead to closed sales. For instance, if you sell trade show and promotional items, offer your customers 15 percent off their next purchase for a good referral. And don't forget to send a thank you for the referral too!

Revisit lost and pending customers. Lost sales are not always lost opportunities. Can you offer prospects that didn't buy from you before something different (but still profitable) now? Have your financing options changed? Can you bundle or unbundle products/services for them? Can you make an up-scale or low-scale version of your wares? After you've called on all your prospects on your "A" list, take a second look at customers on your "B" and "C" lists. Don't give up until you have exhausted all possibilities.

Research competitors to see what they are doing differently. Did they come up with new uses for a similar product/service, along with an untapped customer base? Do what they are doing, only do it better. This also reinforces the fact that you need to know your competitors better than they know themselves. That way when a prospect raises an objection about your wares compared with a competitor's wares, you can tell him or her why your wares are different and better.

Not all of these techniques will work for every business development opportunity, nor do you need to try all of them at once. They are listed in general order of priority. Start at the top and implement a few of the techniques at a time. Most of these can be implemented with very little, if any, disruption to your current work processes. However, you will see marked results in boosting your bottom line.

About the Author

Adam Bujanowski of Charleroi is a marketing strategist at NuRelm E-Business Software and an MBA student at the Katz Graduate School of Business at the University of Pittsburgh. He has contributed articles printed in other publications.

NuRelm, Inc is a woman-owned website software and design firm located in Uniontown, Pennsylvania. NuRelm specializes in content management software, e-learning software and services, and custom Web application development for the non-profit, education, construction and manufacturing industries. Custom solutions include project and workflow management, client and employee portals, and e-newsletter marketing. NuRelm software enables non-technical users to manage their ongoing Web maintenance quickly and easily. For more information about NuRelm’s products and services, visit www.nurelm.com or e-mail info@nurelm.com.

Holding on Price in a Down Economy
Discounting on price is not a sales strategy. It's an impulsive move made by desperate salespeople. In a tough economy, customers think and expect everything is going to be discounted. Because of this, salespeople feel it necessary to oblige the customer to close the deal. Unfortunately, however, this leads to a downward spiral, much like an addiction to an illegal drug. Once a discount is offered to one customer, it becomes easier and easier to offer it to another one. Before they know it, the discount is being offered to everyone. Like a drug, the "fix" is in the additional sales the salesperson is able to gain. However, just like with the addictive drug, there is a "withdrawal." Sales come at a reduced or a very reduced margin. To make matters worse, the discount ends up altering the attitude of the customer who now believes the real value of the product or service they bought is the reduced price and not the full one.

Professional Partnering The Key To Effective Growth For You And Your Clients
If you have been serving business owners for very long you have come to some important conclusions. You only know what you know, you can only see what you see, and there are other professionals with blind spots in different places than you.

Selling a Price Increase in a Soft Market
Selling a price increase can be difficult in nearly any type of situation, but trying to sell one in a soft market can be downright brutal. Yet, as unpleasant as it can be, it is often essential. The problem of selling a price increase in a soft market usually stems from the fact that the salesperson and the customer are coming at the situation from different perspectives. Especially in times like this, it is imperative for the salesperson to understand that regardless of what the market or economy is doing, if a price increase needs to be sold, it needs to be sold.

Sales Goals in a Tough Economy
Making your sales goals in a good year is one thing, but attaining them in a difficult year is an entirely different challenge. Putting aside the common cliché that when times are tough, great salespeople are made, the reality is that making your goals puts more money in your pocket. Therefore, I keep reminding salespeople to think of how many times in the past they've watched a customer materialize out of nowhere only to become a major player in helping reach their year-end objectives. If you've been in sales for any length of time, you've had this happen.