When the exercise ends, it is usual to wonder how the next year will be presented, and this one with all the more reason due to the crisis situation we are going through. The outlook is not very encouraging, and all analysts agree on this: demand will not recover, unemployment will remain at current levels or it may even increase, problems in the financial system will persist or even They can be aggravated by what the financing of companies will continue to be very restricted, and government policies are oriented only to contain spending and investment, but they do not encourage business activity at all, to which is added the discredit that our country is accumulating in international markets.
The companies, which a few months ago faced an uncertain situation, now seem to have some certainty of what lies ahead: they will continue without credit, so they will have to manage with their own liquidity, and sales will not improve despite the fact that many companies from all sectors have closed but the existing demand is not enough for everyone. These two factors are going to put at risk a multitude of companies that have manifest weaknesses and we are going to assist in closing many of them. Of course, those who adopt the attitude of "waiting to see if the situation improves" have many numbers to face this situation.
We have been hearing throughout 2010 that it is necessary to change, to change the business model, the management model. And… what have companies done? Many of them have not understood the message, and while they say that if they have changed, they have really been doing more of the same, at most they have simply reduced prices. But they have continued to try to sell the same products and services, in the same markets, to the same customers, through the same channels and with the same sales techniques. That if they have increased the activity to get less. But that is not to change.
Future viability necessarily involves improving sales. Companies have reduced their costs to a minimum, but the sales they obtain are not sufficient, and in the absence of creditthe only alternative is to increase income. Many companies have already understood this reality, but do not know how to face the solution. And it is that when it comes to sales, demand, markets, etc. It seems that there is talk of an abstract entity, which must be encouraged in some way to decide to buy our product or service. However, sales, demand, the market, is something concrete, made up of a finite number of customers, with a finite purchasing capacity, in which, in addition to us, there are other competing companies that are in a similar situation to ours. This is the scenario and achieving sales improvement in this scenario is only possible at the cost of taking them away from the competition.. Therefore making attempts to stimulate sales outside this approach is simply to achieve nothing.
There are certainly companies that are improving, we all know some. They are managing to improve sales, their positioning and market share, increase their penetration rate in each client and even enter new clients, all at the cost of competition. What is "your secret"? Logically they have known how to do better than the competition, focusing on two fundamental aspects. On the one hand, they have known how to “reinvent” their business model, being able to present a more attractive, different offer, more adapted to the current situation, in products, services, prices and conditions. On the other hand, they have developed more efficient management models, based on the control of the key variables and the processes that add value. For this they are counting on solvent executives, who were already in the organization, who have incorporated them, or even external consultants. Professionals capable of promoting change, promoting new business development, controlling and managing it efficiently, and above all, achieving results.
There are no magic recipes, each case is different according to the strengths and weaknesses of the company itself, its position in the market and the strengths and weaknesses of the competition. But if we dare to offer some points of reflection that can guide the manager in that search to improve their sales.
Active attitude: first of all adopt an active attitude, think that solutions can be found and put yourself to the task with determination. If you think that your company cannot, that it does not have money, that this is for large companies, or you hope that things will improve on their own, a tip: the sooner you close the less you will lose.
Review our core business: in short, know what our customers buy, what they value about our product and service and what they are willing to pay for. Can we "transform" our offer so that we improve our value proposition?
Review our market and channels: can we only sell in the markets we sell? Can we identify new segments or niches? Can we sell in other countries? Can we sell through other channels?
Review our positioning in each client: we must know in each case the data (items or services that we buy, quantities, prices and conditions, customer penetration rate, etc.) and the reasons (why we buy what we purchase, why from us, why from the competition, etc.)
Review the positioning of the competition in each client: the same analysis carried out for our offer must be carried out by our competitors in each client, know their figures and know the reason for them.
Establish the strengths and weaknesses of each competitor.
Establish our strengths and weaknesses versus each competitor.
Define an "attack" strategy: we will be able to increase sales from client to client and step by step. For this, and based on what has been previously seen, it will be necessary to identify in each client, those competitors with the greatest weaknesses, and develop tactics directed directly against them. The most effective is to "attack the weakest enemy."
And… the commercial director ?: Well, yes, you have to ask yourself if the person in charge of sales of the company is going to be able to execute the plan effectively, otherwise there is a risk that a good plan will have a bad execution and therefore fails. Let's make sure we have the “general” capable of achieving results.
Train the sales force: they must know the plan and its objectives to understand the guidelines that are transmitted to them. They must be equipped with sales tools and they must be trained in new sales tactics. They need to be totally efficient in their performance.
Push, push and push: once the plan has been decided and put into action, you have to make an effort to carry it out, despite the difficulties, despite the fact that the results are not spectacular (do not expect them to be), but little by little improvements in sales will be achieved.
Control and flexibility: control the activity, the results, and be very sensitive to any reaction by the competition or the market situation. You need to be able to be flexible and adapt to the new situation quickly.
One last thought: selling is not free. Whenever we have a good idea, let's put at your side how much it will cost us.
Right now selling is "more expensive" than last year and even more than two years ago. The question is how to manage the resources of the company in the most efficient way. But it is necessary to do it because it is time to sell.
