The economic downturn is no longer ‘looming’, but well and truly upon us. Try as we may to prepare for the inevitable challenges to come, the only thing that’s certain about the future is that nothing is certain. Maybe it will pass quickly, and maybe it won’t. Either way, as we near the end of […]
The economic downturn is no longer ‘looming’, but well and truly upon us. Try as we may to prepare for the inevitable challenges to come, the only thing that’s certain about the future is that nothing is certain. Maybe it will pass quickly, and maybe it won’t. Either way, as we near the end of 2023, sales leaders need to start working on their pipeline now, to give their teams the best chance of success in the new year.
Here are seven tips to help sales leaders set their pipeline up for success in 2024:
1. Be pickier about outbound prospects.
In a weak economy, SDRs shouldn’t be wasting time creating demand among prospects who aren’t in a position to buy right now. Using intent data and high-quality lead capture as a starting point, SDRs can maximize response rate by focusing their energies on high-potential market segments and buyers who are actively searching for your product. They can move low-potential buyers to a ‘reach out again when the recession’s over’ list, and keep them on a ‘low simmer’ by staying in touch every once in a while to make sure your product stays top of mind.
2. Turn raw data into actionable insights that pack a punch.
During economic downturns, everything your team does is measured with even more scrutiny than usual, and the resulting metrics tell a story about your pipeline. For example, what are your team’s strengths and weaknesses? Which tactics are working better than others? Which client types are most amenable to a sales pitch (even in the current climate) and at what stage of the sales journey? Are there any tell-tale signs that indicate when and why clients are churning? If your SDRs know how to look at this data and convert it into actionable insights, even the smallest of tweaks to their prospecting strategy could make a significant difference to the quality and performance of their pipeline.
3. Pre-empt recession-specific objections with a foolproof script.
However well your current buyer personas have served you in times of plenty, priorities and attitudes change considerably when times are tough. That means that your SDRs’ usual prospecting script won’t cut it during a recession. When they reach out to prospects, their outbound efforts need to be intentional, well-informed and empathetic. Work with your SDRs to understand your prospects’ needs, their mindset, and potential objections during this challenging time. Then, adjust their communications to include a more personalized approach. By asking the right questions, they’ll be better able to understand your prospects’ current concerns and buying readiness. From there, it should be easier for them to demonstrate how your product can solve their pain points now, rather than at some point in a distant and uncertain future.
4. Boost your SDRs’ productivity with a souped-up tech stack.
According to a recent Forrester Sales Survey, fewer than half (46%) of surveyed sales managers agree that their overall operating model is predictable, scalable, and repeatable. In other words, their sales environment isn’t geared for maximum and consistent productivity. Whether you’re among those 46% or not, optimizing your sales operations during an economic downturn is a must. Investing in better tech will boost your SDRs’ efficiency in filling their pipeline with qualified leads. This could include software that captures better prospecting leads, assists with real-time conversation guidance, automates repetitive tasks, and provides shared access to customer data between departments.
5. Capture better leads with less headaches and more precision.
This seems like a no-brainer (regardless of the economic climate), and yet many SDRs are still stifled by lead-capturing processes and software that waste time and make it harder for them to reach their quotas. This may be due to using too many different prospecting sources and tools that are difficult to track and manage. Investing in a platform that can capture more accurate contact data and enrich it for more seamless use with your existing CRM will boost productivity and allow your team to convert more leads and close more deals.
6. Instead of doing “more with less”, turn “what you have into more”.
Many businesses initially respond to the onset of a recession with the reflex action of drastically reducing headcount. But instead of expecting a smaller team to achieve even more (which is somewhat illogical, if not slightly ruthless) – you could invest in training your team to uplevel their skills and boost their potential. You could also ask your top performers (who are likely responsible for generating a disproportionate amount of revenue) to take your less experienced SDRs under their wing to help improve their performance. This will lift your team’s win-rate overall, so instead of cutting costs by culling employees, you’ll be generating more revenue with the team you already have.
Incidentally, this strategy also applies to your customers. It costs anywhere from 5 to 25 times more to acquire a new customer than to retain an existing one, so customer retention is especially important during a recession. Focusing on upselling and cross-selling, could prove to be one of the most reliable sources of revenue.
7. Get cozy with Marketing to get on the same page.
Make sure your messaging to the outside world is consistent and on-point to improve the quality of both your inbound and outbound prospects. Just as your usual sales scripts won’t work on more hesitant buyers with much tighter budgets, ‘typical’ marketing initiatives aren’t as likely to convert MQLs into SQLs either. Work with your marketing leaders to make sure their efforts are aligned to your revised goals and KPIs, so that they can create lead-gen campaigns that are specifically optimized for buyers with a recession-centric mindset. This will improve lead quality for your SDRs, ensure the messaging remains consistent throughout the buyer journey, and increase the likelihood of closing the deal.
As with past global recessions, there are always winners and losers in business. The challenges you’ll inevitably face as a sales leader are likely to be formidable. But if you stay cool-headed, strategic and agile, you’ll be better able to empower your team to not only hit, but possibly even exceed their quotas.
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