There has been a lot of speculation across headlines that a possible recession or an economic downturn is on the way. As 2022 continues, inflation and its effects across industries seem ever-present. For the sales departments, staff retention continues to be a cause for concern. As companies become less able to spend due to high prices, challenges in selling may lead to your sales force leaving for other industries or lines of work. One of the worst things that can happen to your business is to lose the sales team you have spent time and effort investing in. If your company is left high and dry, a recession will hit you that much harder. How do you retain your sales team during these hard times?
Here are 4 tips to strengthen your sales strategies and compensation plans, to keep your sales force happy and productive regardless of the economic climate.
- Quota Adjustments- what are you rewarding?
Traditionally, quotas are based on performance against sales targets. But during times of inflation, recession, and downturns this can become a pitfall. Your reps may have trouble closing deals, through no fault of their own, as your clients are skittish to purchase goods and balk at inflated prices. If no one is buying and sales reps can’t meet their quotas, they may feel pushed to look for other opportunities. To create engagement and a sense of accomplishment, consider rewarding milestones other than closed deals such as contacts or connections made, and initial meetings with potential clients. This incentivizes reps to still track down prospective clients and create relationships that could lead to potential sales in the future.
2. Timing of Payments- how often do you reward your team?
Traditionally, incentive compensation is paid out about twice a year. During recessions, your reps are being hit too, worrying about their bills as the cost of products rise. With compensation payouts so far apart, they may get anxious waiting until their next payment. Consider breaking up this schedule during a downturn. This allows your team to know what they are being paid sooner, so it doesn’t feel far off. If they feel payment is closer on the horizon, they will be incentivized to remain with your business and keep selling.
3. Invest in Marketing- back up your sales team
Sellers need every advantage they can get the more difficult selling becomes. Marketing efforts can make a big difference here, creating brand recognition and equity. Getting your company’s foot in the door can be everything, ensuring that the first conversation goes smoothly will allow your sellers to have an easier time in meetings and build better rapport with prospective clients. The leads that marketing efforts can develop for your reps is crucial to provide enough meat for your sales teams to work with. It is critical that you build out a strong marketing effort before and during times of crisis
4. Where are you selling? Focus on key markets
Scouting beforehand on the business and industry can help you go from a shotgun to a sniper approach. Certain industries are hit harder by a recession, do you spend valuable time selling there where they may not bite? Do you focus on smaller companies that may be floundering or pay attention to more established ones more likely to weather the storm? Maximize your effort and productivity by not wasting time on prospects unlikely to result in a sale. In times of difficulty direct sales reps to the most likely of deals.
Making all these changes may seem daunting, especially in times when you are already struggling. But these changes are necessary, you don’t want your team to leave you high and dry as selling becomes more difficult. History has shown that being able to pivot in periods of economic instability leads to success and supporting your organization with an SPM platform that allows you to pivot as needed. You gain increased flexibility in quotas and compensation plan management and are able to change them quickly and effectively. You gain visibility and accuracy in payments and can easily change their timings. You can act quickly on leads, using marketing analytics to determine plan changes and desired territories to target. It allows for fluid and intuitive target identification and rep management, allowing you to shift territories across your business. Protect your sales team and business with the power and flexibility of an SPM solution during the next downturn or recession.
To learn more about SPM and how it can be utilized to bolster sales efforts, reach out to our experts.