Is Your Sales Team Recession-Proof? Key Metrics for Thriving Amidst Market Changes
Every now and then, we at Braveheart Sales come out with a cautionary tale – this is one of those times. And that’s because, in the world of business, being ready for change is the name of the game.
Imagine your sales team as a ship navigating rough waters. They need to weather the storm but also sail strong no matter what. That's why it's vital to make sure your team is prepared to tackle tough times, like recessions, and ensure they are set up to not just survive but thrive.
In this article, we'll explore why your vigilance matters and offer actionable steps you can take now to help you assess your team's readiness.
Embracing Adaptability in Tough Times
Picture this: the economy takes a hit, markets shrink, and the once-plentiful business opportunities dwindle. In such times, companies find themselves vying for a larger slice of a much smaller pie. The traditional strategies that worked in stable economic conditions may prove insufficient in a recession. This is where the distinction between account-based growth and proactive competitor capture becomes paramount.
At Braveheart Sales, we’ve always warned that, even in “regular” or “good” market conditions, your sellers should never become too reliant on account-based growth. They need to continue to hunt down new business opportunities.
Inevitably , when market conditions change for the worse, existing relationships won’t cut it. Rather, your sellers need to be ready to shift their focus to actively luring business away from competitors.
Growing Strong, No Matter the Weather
The most successful sales teams are the ones that are resilient in the face of changing market conditions. Just because the economy is slowing down doesn’t mean that your team has to slow down, too. The best teams don't just stick to old plans; they find new ways to win. Even if the market cools off, your team can still heat things up.
Think about those times when supply chain issues or prices going up gave some companies an advantage. But these advantages don’t last forever. Sooner or later, your sales team needs to step in and win more business. They need to stay realistic and proactive. When the phone stops ringing as much, it's their cue to work even harder to grab their share of the market.
Checking Your Team's Readiness
The elephant in the room is: How prepared is your sales team to weather the storm of a recession? To assess their recession-proof level, you need to delve into specific metrics and indicators. Here are key questions and considerations to consider:
Competitive Business Capture: When's the last time someone on your team successfully won business away from a competitor? The frequency of these occurrences is a strong indicator of their agility and competitiveness.
Percentage of Competitive Business: How much of your team's business comes from competitive captures? This metric provides insight into the team’s ability to disrupt established market dynamics.
Account-Based vs. New Business Ratio: In usual times, relying solely on account-based growth is risky. What's the ratio of new business to account-based growth in your team's portfolio? Striking the right balance is essential for adaptability.
Industry Dynamics: Different industries react differently to tough times. How well does your team know your industry's ups and downs?
Recession Experience: Have your sales team members weathered a recession before? Those who navigated the challenges of the Great Recession might possess invaluable experience that could guide your team's strategy.
Pipeline Behavior: Are deals taking longer than usual to close? This might be a sign that the market is changing, and your team needs to adapt.
Fostering a Fighter Mindset
Here's the secret sauce: get your team into a winning mindset. You don't want them sitting around waiting for things to happen. You want them to be like determined fighters, ready to seize opportunities when they come up. Even if things get tough, they'll have the energy and drive to to win business from competitors.
Remember, you're not just preparing for a recession; you’re preparing for any challenge that comes your way. By looking at these questions and helping your team develop a winning mindset, you're not just getting ready for rough waters; you're becoming the captain of a ship that can navigate any sea.
Conclusion
Change is the only constant in business (and in life). To keep your sales team strong and ready for anything, you need them to be adaptable and resilient. While focusing on current customers and new business is important, the real magic happens when they can win business from competitors, too. By checking in on these simple questions and encouraging a winning attitude, you're making sure your team can tackle any challenge, whether it's a recession or something else. So, as the winds of change blow, your sales team will be ready to set sail and conquer whatever comes their way.
