For even the most well-informed individual, these kinds of headlines are particularly concerning.
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For those that make their living in the world of sales, these times can cause complete confusion around how to change/adapt to this unfamiliar kind of economic disruption. Clients are reconsidering every purchase. Some are curtailing spending. Many are laying off personnel. It is important to remember that customers in the B2B world are just as unnerved and confused as the sellers who have or want their business.
No one can argue that these sudden and, in some cases, enormous increases in tariffs, and the associated decrease in country quotas are completely new challenges for any seller representing a product or service that sells internationally, or is dependent on imports/supply chains. But a moment of reflection reveals that this is only the latest in a series of unforeseen disruptions. Anybody remember when the world shut down due to COVID? How many sellers in the workforce have not already weathered periods of recession, or supply constraints, or acts of terrorism?
Unforeseen disruption is the story of human history. In every one of the previous disruptions, those that saw the situation as an opportunity to adapt, and as a time filled with potential for corporate growth far exceeded their competitors in terms of revenue growth and new client acquisition. Those that focused on cutting sales staff and reducing expenses often found that their situation deteriorated despite those efforts. Let’s look at what the successful did that their competitors failed to embrace. What can be learned from recent history, and from what research has revealed.
One note of caution before we begin this journey. Not every company nor every seller is able to embrace the answer. If a company’s business was completely dependent of serving clients who depend on government grants, or companies completely dependent on supply chain efficiency and purchasing from countries/regions where tariffs are at all time levels, the entire business may be at serious risk. The countless restaurant supply companies that collapsed during the COVID shutdown with no real alternative are a cautionary tale. From the standpoint of this blog, there is no real answer in these situations. Our heart goes out to those companies and their workforce. If, however, the company can survive, these times can present a clear path to maintaining revenue, and perhaps even accelerated growth.
Bottom line: this is not the first unexpected disruption, nor will it be the last that most B2B sellers face. So, what do we do?
Let’s begin exploring the answer by examining the often-abused term "sales best practice". How many firms claim that they can show sellers what best practices in sales really involves? You might be surprised thousands of firms claim that imprimatur. Sadly, in times of distress the weakness in their definition of best practice will reveal itself. That is because real best practices cannot be derived by the anecdotes or experiences of one or a few "successful sellers." Such attempts are often driven by those who claim they can make others successful by teaching them the "secrets they discovered”. Such claims are nonsense no matter how insistent the provider is about "it works…I have proof".
Suffice to say that only real science, large data samples and the application of the statistical analysis can validate actual best practice.
Which brings us to answering the question of how to survive and thrive in times of economic disruption. The simple answer is to rigorously apply a select subset of those real best practices. A look at this subset can be a litmus test for how well sellers are prepared to dominate in tough times and can be a template for the approach that wins:
Change is the engine of opportunity. That mantra underpins any successful sales effort. If the customer is completely satisfied that the solution they are employing is delivering the value they seek, no other purchase will be considered. But there are few changes as disruptive to satisfaction with the status quo as unexpected economic disruption. This means that one of the first steps in succeeding is to carefully analyze how each existing customer is addressing their concerns about new economic challenges. This is not just applicable to tariffs. It is applicable to how existing customers are serviced during any contract period whether there is a disruption or not. But in critical times this process is essential. The best and most important thing for the sales organization to do is to put an all-out effort into talking with multiple executives in multiple roles in existing customer organizations about how the crisis is affecting their business and about their plans for adapting. Sellers need to listen for any new opportunity to create value, even if that creation has nothing to do with expanding their revenue or product mix with the existing customer. Not only is this vital to keeping the existing customer close, but it also equips sellers with the information they need to create value for new customers.
Recognize that it is unlikely the seller’s competitors are having those kinds of conversations with their existing customers. In the case where the competitor is savvy enough to have those conversations, it is safe to assume that they will be seeking to speak to the seller’s accounts as well. The strategy, therefore, is to analyze which of the competitors’ accounts are most likely to want what to speak to someone outside of their current vendor relationship. How can you tell? By using the information gained from speaking with your own accounts.
Remember that modern buyers are looking for sales organizations that can help in or more of three areas:
At no time is it more critical to focus on providing value in these three categories than in difficult times. Providing this kind of value requires sellers who are adept at conversational inquiry, attentive/proactive listening and employing the two rules of effective consultation:
Customers will always put a higher value on what they conclude and on what they tell the consultative seller than they will assign to what seller tells them.
Customers will always put a higher value on what they ask for than what a seller freely offers.
In short, this means sellers who are equipped with the habits and skills of consultative selling have the tools to thrive in hard times.
Hard times often shift the rules of authority and strategy making. This generally means that the level of spending authority goes down at each level of management while decision-making about strategy and spending elevate to higher levels in the organization. Sellers who understand how to uncover, validate and engage with each of three buyer roles will have opportunity to solidify existing relationships/accounts and potentially acquire new business. Those that cannot recognize who is a "Voter" from who is a "Voice" in accounts/prospects will struggle. Those sellers who understand how to broaden the level and number of contacts in a buying organization will consistently outflank competitors. The three key buying roles (Voters):
Tactical: those who will be directly using the solution.
Technical: those that are responsible for internal processes and compliance (i.e. legal, risk, procurement, etc.)
Strategic: the ultimate decision maker who has the power to impose their choice over all other voters (though they seldom may do so).
Sellers who are unfamiliar with buyer roles will default to associating buying authority with job title. This is a path to nowhere. In the current world of B2B selling, job title and buyer role are only loosely correlated. This correlation becomes more tenuous in hard economic times.
Curious how you can prepare your team for selling during economic uncertainty and a tariff driven trade war? Reach out to us today to schedule a free 30-minute sales consultation!
Tom Snyder is the founder of Funnel Clarity; a training and consulting company focused on humanizing sales. Snyder’s passion is helping companies achieve measurable sales performance improvement. Previously, Snyder spent 10 years with the sales training firm Huthwaite Inc, culminating in the role of CEO. He later founded Business Performance Partners, a sales and strategy consulting firm that evolved into Funnel Clarity. Snyder is a sought after international speaker and was named one of the Most Influential Sales Leaders. He has authored two McGraw Hill best sellers, “Escaping the Price Driven Sale” (2007) and “Selling in a New Market Space” (2010).
