Richard Liew: Canny strategies can help turn tough times to your advantage

"When the tide is rising," so the saying goes, "any boat will float."

While rather bland, some would say this observation gives a fairly good description of our economy, and the ease with which many businesses have been able to achieve year-on-year sales growth in the past four to five years.

Riding high on the back of a property boom, government surpluses, easy credit and rising consumer demand, the "sellers' market" has made it all too easy for businesses to secure their share of the punter's dollar.

Provided the product or service was of similar quality and cost to their competitors', the rising tide enabled nearly every business and its proverbial dog to ride the wave of the economic boom.

Did you have to provide the best service in the market? Not necessarily.

Did you have to have the highest-quality product at the best price? Not really.

Did you have to be the best at selling your services? Definitely not.

But just as surely as the tide rises, it will recede, and perhaps a more appropriate anecdote for today's business climate is that old chestnut, "It's only when the tide goes out that we see who has been swimming naked."

All cliches aside, for those at the coalface of business, the salespeople charged with growing revenue, it's undoubtedly become a lot tougher to achieve the level of sales they were making before the current downturn.

Whether you're in construction or cars, fashion or finance, the headlines confirm what most of us are experiencing - our customers have made like shellfish and clammed up.

While our governments do their best to loosen things up and get the cash flowing again, it's the job of the sales professional - and in the case of most small to medium-sized businesses in New Zealand, the business owner - to secure the sales needed to ensure the business is still around to catch the next wave.

So what's to be done when your customers simply stop spending?

Here are five sales strategies to ensure you not only retain your market share in a recession but use it to your advantage:

Defend your current customer base
Hang on to your existing customers for dear life and do whatever it takes to keep them. If it looks as if they will have to cut their spending by 50 per cent then so be it - as long as they're spending the remaining 50 per cent with you! Ask yourself what challenges your customers might be facing in this economic climate and how you might help overcome them. Let them know you understand their challenges. Helping your customers through tough times is the best way to ensure they help you when you need it.

Pre-empt your competition
Ask yourself what you would be doing if you were one of your competitors. When customers are in pain it gives competitors a great reason to reach out to your customers and see if they can save them money or improve their lot in some way. Instead of waiting for competitors to do this, do it yourself.

Yes, this may reduce a customer's current spending with you, cost you margin, or delay that large order you had hoped they would place this year. But if it stops your customer from going to the competition, you'll more than make up for it when the tide turns.

Look for other opportunities with existing customers
Problems are opportunities in disguise.

Once you've reassured your existing customers you're on their side, ask yourself what opportunities there might be to actually increase the spending of your customers in other areas.

For example, if your customer has cut their spending on packaging because their customers are buying less, could you sell them postcards to send to their customers to remind them of an upcoming sale? Or if your customer has said they're cutting back on advertising - could you offer to help them create a better customer loyalty programme? Put yourself in your customer's shoes and ask yourself how you could help them increase their business.

Ask for referrals
If you've been able to save your customers money or have found an innovative way to help their businesses to cope with the downturn, ask them for referrals. Who do they know who is in a similar situation, or would love the chance to use your services to help them to use the downturn to their advantage?

This is a great way to pick up new customers who maybe haven't thought about using your services before.

Attack!
Once you've taken steps to defend your market share, and have looked for ways to increase revenue from your existing customers, it's time to go on the offensive. Sometimes the best form of defence is attack and while everyone is distracted by the recession and immobilised with fear, those who are proactive have a great opportunity to increase market share.

Have your competitors neglected to show their customers the same care and appreciation you have, thereby leaving the door open for a supplier who can empathise with their customers? Is there some way you can help your customers that your competitors can't?

Think about what your competitors might be trying to do to you, ask yourself how you might be able to turn the tables and do it even better.

Richard Liew is the editor of NZ Sales Manager, a fortnightly e-magazine for sales professionals.

www.nzsalesmanager.co.nz