06/ 11/ 2008
by Kelle Campbell
Sales slumps are an inevitable part of business cycles, whether they are seasonal or due to a market downturn. Here are some survival tactics to help you weather financial storms.
Offer complementary products or services
If customers are currently balking at your prices, consider focusing marketing and sales efforts on your lower-priced items. In addition, you can increase sales by offering buyers add-on services or products that relate closely to a recent purchase so they perceive the extra as added value. Another "extra value" sales tactic is combining a regular offering with add-ons under an umbrella price. The idea is that these supplementary offerings should enable you to boost or maintain prices without taking up a lot of your own money or time.
If you experience seasonal sales slumps, consider introducing items or services that will be in demand during your usual down times. This does not mean you should veer off in a completely unrelated direction to your current business mission. Instead, see if you can expand its scope. For example, a landscaping business might re-classify itself by helping property owners control the effects of nature during the fall and winter months, and extend its services in ways that help customers deal with fallen leaves or snow, and so on.
Broaden your client base
During a downturn, you will likely have to reach out to a greater number of prospects in order to obtain a satisfactory level of sales. You may also want to think about repackaging your offerings for potential clients who are outside of your usual market, but could also use your expertise or products. If you are in a business-to-business field, you may be able to target recession-resistant industries such as health care or security.
In addition, you can create new packages or offerings that accommodate larger or smaller customers in the markets you already serve. For example, you could create partnerships with vendors who can supplement your offerings in order to attract bigger clients or think up cheaper versions of your services or products for smaller customers.
Step up marketing efforts
Also, market yourself to existing customers and make sure to strengthen client relationships. You can increase customers' perceptions of your value through perks such as free and/or express delivery, customer-friendly return policies, more flexible payment options and superb customer service. Downturns are the times when you should strive to exceed customers' expectations, so find ways to make your best customers feel special. For example, try offering exclusive discounts, loyalty programs or other promotions. Also consider cross-selling and up-selling your services and items.
It can be difficult to drum up new business during an economic downturn. To maximize your return on investment, focus on cost-effective and measureable marketing tactics such as direct mail and e-mail campaigns. Other tactics include the following:
- Using search engine optimization tactics to build online awareness of your business
- Conducting educational workshops (in person and online) to highlight your expertise
- Networking with peers and prospects
- Writing articles and case studies to showcase your expertise
- Making speeches at venues that attract likely prospects
- Supplying information to journalists and bloggers for publicity purposes
- Promoting trial offers, if feasible
Look for bargains that add to long-term ROI
When the economy is down, vendors will be offering value for money, just as you are. Therefore, such times are excellent opportunities to optimize your business processes. You should consider renegotiating rates for services such as shipping, and also look out for essential equipment being offered at lower prices than usual.
A downturn is not the time to purchase items or services that are simply nice to have. You should only be making strategic purchases that can help you raise productivity or lower the cost of doing business. Also, if the economy is in a recession, you are traditionally in an employer's market in terms of jobs, so consider making some strategic hires and keep a lookout for talented individuals who can help you grow your business.
Optimize down time
Slow times do not last forever, so make the most of them by focusing on tasks that tend to be put aside when you are trying to keep up with sales. These tasks may include professional development and training, upgrades to equipment or facilities, or research and planning. If it is feasible, you might even use your down time for personal development or recreation, which will help you maintain a positive mindset while you put the other survival tactics mentioned into practice.
