What Harvard says about selling in a downturn

Published: Wed, 01/04/23

January 4, 2023

TOGETHER WITH

It’s 2023! Each new year gives us a chance to start over fresh, so (after you’re done reading this newsletter) make sure to call and email every single prospect who asked you to follow up in January. In this week’s newsletter, we’ll find out what the Harvard Business Review says about selling in a downturn, share a Sales Fail about computer use, and give some advice to a sales rep who can’t seem to level up. Let’s go!

NUMBER OF THE WEEK

55% of sales reps say budget is the most common reason a promising deal falls through.

Source: Sales Insights Lab

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

Selling software or financial services is one thing, but what about selling private islands? Insider recently profiled Chris Krolow, an island salesman who runs a marketplace for renting and selling private islands across the globe. Chris’s obsession started when he was nineteen and working as a tour guide in Canada for a group of Germans. You can read the full article here.
Everybody wants to try their hand at sales, even The Fantastic Four’s Johnny Storm, otherwise known as the Human Torch. In a new preview for Fantastic Four #3 by Marvel Comics, the Human Torch is revealed to be working as a salesman at a mall. The fiery hero changes his name and appearance to stay hidden as the rest of the superteam searches for him. You can read more about it here.

FEATURE

Phase4Studios/Shutterstock.com

3 ways to adapt your sales approach in a downturn, according to the Harvard Business Review

Whether we’re calling it a downturn, a recession, or just plain weirdness, the economy is (and has been) in a strange place. There’s no denying that budgets are tightening and people are putting more thought into buying decisions. So how does one navigate this new environment? The Harvard Business Review recently tackled this very question, and they came up with three suggestions to help you sell through the slump. Here they are:

1. Involve executives earlier in the process.

Executives are usually brought into the sales cycle towards the end to help make potential customers feel important and help close the deal. By bringing members of your executive team into the process earlier, you can increase the likelihood of closing more deals.

A big part of the value they bring is creating connections with members of senior leadership (the key decision makers) on the other side of the table. An executive-level peer can build trust and better understand and alleviate concerns for these decision makers, all while making them feel that their business is important to the company and that they aren’t just another number.

You won’t be able to bring executives into every deal. But by using them strategically for specific accounts, you can help increase your close rate and overall revenue.

2. Break out of price-driven sales cycles.

In an economic downturn, customers will of course be more price-sensitive. They’ve most likely faced budget cuts and are cautious about making new purchases. But discounting shouldn’t become the go-to tactic for your team, as this will only hurt margins and isn’t guaranteed to help you close more deals.

Oftentimes, a price cut won’t get a deal past the finish line. Customers are hesitant to spend at all, so making the conversation about a 20% price reduction isn’t likely to get them excited. Instead, focusing the conversation on the benefits of your product (time savings, productivity enhancements, etc.) can help your customer realize how your product will help them and improve their business. The winning conversation is often not about price, but about how you can help them achieve their goals.

3. Refocus sales managers on planning, not selling.

The first instinct during a downturn may be for sales managers, (most of whom have reached their position due to their ability to sell), to roll up their sleeves and start getting involved in deals themselves. But beware of doing this, as it can oftentimes do more harm than good.

Doing this significantly weakens the role of the salesperson. If the salesperson is taking a backseat to the manager, their presence and credibility on the account will be lessened.

It also takes the sales manager out of their role as the ‘coach’ and makes them a ‘player,’ when they can have the biggest impact on the team by continuing to stay in their coaching role. Instead of selling themselves, managers should stay focused on leading and coaching their sales team and improving their ability to win.

TOGETHER WITH #SAMSALES

The holidays may be over, but that doesn’t mean you need to celebrate dry January (is that even allowed in sales?!), and your inbox shouldn’t be celebrating it either!

#samsales is setting fire to your email outreach with this highly-effective cold email template. 🔥

Nail your subject line – if you tank this, crafting the perfect email body is pointless! If you haven’t mastered the #samsales pillar of “Show Me You Know Me”, where have you been?! Psst…you can catch up here.
Create a hook – this is your chance to be an authentic human. Do you have a connection with your prospect? How can you stand out from the bajillion other sales emails?
Anticipate the objection – but don’t stop there! Respond to the objection within your email before the prospect can dismiss you.
PLEASE! Do not send your Calendly link in the initial email. We beg you.

Want to see the perfect cold email crafted the right way? Subscribe to #samsalesmail, and get our perfect cold email template straight to your inbox!

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MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

In the movie Groundhog Day, which product does Ned Ryerson sell?

A. Encyclopedias
B. Real Estate
C. Insurance
D. Travel

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

My worst Sales Fail happened about ten years ago when I was in the mortgage business. I worked at an inside sales mortgage company, and we mostly did refinances that came in when people called after seeing our ads on TV, or clicked on one of our web ads.

One day this older woman called in. She had seen our ad on TV and wanted to know if she could refinance her house to lower her payment. She was extremely nice and I spent a long time on the phone with her discussing her grandkids and my family after I took her application. From what I remember, she was in her mid 70s.

She agreed to start the refinancing process, and at that time, we had just started using an online portal to make uploading documents and signing paperwork easier, and she agreed to use the portal. But after a few days, it was clear that she was really struggling with getting everything set up and using the software. Finally, she asked for help. But she was still working during the day, and said that she only had time to do everything after work.

I wanted to help (and of course, I wanted the deal), so I agreed to call her after 7pm one night and to walk her through everything. And it was not easy at all. I literally had to give her step-by-step instructions through the entire process (“okay, now click the enter tab, then the submit button, etc.”). All told, I spent probably close to two hours on the phone with her at night after a full day of work. But I was happy to have the deal.

A week after everything had been completed, and her appraisal had been ordered, she called my office line. She said she was so sorry, but that her son had found somebody else to do the refinance and was not only adamant that the company was better (we were offering a very competitive rate so I’m not sure I believe that part), but that he would handle all the paperwork for her. She was so nice that I didn’t give her a hard time but I probably spent more time working on that deal that didn’t close than on any other closed deal I ever worked on in my life.

Anonymous Location withheld

GRAPH OF THE WEEK

Source: LinkedIn Poll -- December 2022

WORTH A PEEK

It’s that time of the year when we all make resolutions: more prospecting, taking better care of our health, and bringing home those massive commission checks. But without better habits, resolutions just end up being empty promises. You’ve probably heard of Atomic Habits by James Clear, and there’s a reason it’s sold over 5 million copies. A great purchase if you’re looking to improve in 2023. Check it out here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team,

This is going to be my third year in sales. Before this, I was working as a laborer at an HVAC company. As far as I’m concerned, this career has been a life-changing thing for me. That being said, I still feel like I’m an underachiever, especially compared to the people I see online as well as the performance of my coworkers.

In these last few years, I’ve spent probably between fifteen and twenty thousand dollars on sales courses and mastermind events. I have enjoyed learning from the material and meeting people at the events and all that, but it really doesn’t seem to have made much of a difference when it comes to my performance.

Don’t get me wrong, I usually hit my quota, and I’ve never lost a sales job in my life. But I’m rarely at the top of the board and seem to be stuck around the just-under-100k-mark. Like I said, I am constantly investing in training and am appreciative of the job, I just don’t know how to level up. Any advice for how to break out of the middle?

Stuck in Dallas

Dear Stuck,

It’s great that you’re appreciative of your career. Too many of us find ourselves achieving the things we once dreamed of only to end up taking it all for granted. Gratitude is a good thing.

It’s also good that you’re looking to improve. But it’s a bit curious that you’ve spent that much money on sales training and “mastermind” events without seeing any results. Some of the people selling this stuff, of course, are nothing more than grifters, and it’s important to learn how to separate the professionals from the hucksters, otherwise your money is just going to some fast-talker’s Lamborghini (lease) payment.

So how can you level up? Without knowing you or your industry or where you fall short, the best advice we can give you is to start doing, and to start adapting.

What that means is instead of spending days reading about sales on Instagram pages, start increasing the volume of your efforts. Research prospects instead of researching influencers. Craft carefully thought-out emails instead of crafting messages to “sales hustlers.”

And adapt. With enough focus, you yourself can figure out where you’re falling short. Is it in your prospecting efforts? Is it on the pitch? Or is it the follow-up? Use your managers and coworkers as a resource. They’ll have a better view of what you need to work on than some dead-eyed, spiky-haired scammer who targeted you with a YouTube ad. At some point, you just have to stop looking for answers online and start doing the work. Good luck, you can do it!

Quiz Answer: C - Insurance

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Today's email was written by Ken Kupchik, Erica Furgiuele, Steve Rado, and Emily Hill.

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