The last recession (June 2007 to December 2009) was very good for me. Not everyone can say it, but in the world of B2B sales, specifically convenience services, “recession” is another word for opportunity. Moreover, based on the combination of the post-pandemic return to the workplace and the shortage of skilled help, this coming recession will be different, if it happens at all.
Harnessing the mindset
Recession or not, the mere mention of the word makes CFOs think of “downsizing” and ask, “How can we save money?” This type of thinking is music to the ears of a seasoned account executive because it creates a compelling reason for a decision maker to meet with you. An operator should capitalize on this decision-making mindset by asking a simple question: “If I can show you a way to reduce your spend and improve your OCS and your refreshment program at the same time, is there any reason why which one wouldn’t be open to a little meeting to learn more?”
Choose not to participate
A great quote from Wal-Mart founder Sam Walton comes to mind regarding increasing business development efforts during a recession. When asked in 1991, “What do you think about a recession?” he replied, “I thought about it and decided not to participate.” listen to sam Instead of scaling back your business development and sales efforts in the face of recession, spend more targeted.
Lessons from history
During this last recession, there was a lot of heartache, from business closings to job losses, largely driven by the real estate, mortgage and banking crisis. One thing we’ve learned from past recessions is that they are usually followed by robust periods. A recession is the time to “set the table” for the great recovery that is on the way. That’s exactly what we did with our company, and when the economy took off like a rocket in 2012, we were well positioned.
A three-tiered strategy that works
We focused on three business development strategies that, by the way, will work well in any economic condition.
1. Increase pay-per-click (PPC) advertising. Yes, it is expensive. The good news: If your competition isn’t reading this, chances are they’re cutting back on their advertising and especially PPC, so your cost per click should drop.
I’ve written and spoken about PPC advertising before. As far as I’m concerned, it’s the “magic bullet”. Yes, you can rely on search engine optimization (SEO) and hope for the best, but if you want to get your sales reps in front of highly motivated prospects on a consistent basis, PPC is the answer.
Relying on SEO is like buying a playground set from Sears and assembling it yourself. In time, it will be completed. It could even be mounted properly. It will be cheaper than buying one from the expensive patio furniture store where my neighbor bought his. The difference is this: my neighbor will be lounging in his yard, enjoying the success of his purchase, while I’m still crawling around the floor a week later, looking for the missing nut and bolt. I speak from experience.
2. Increase paid strategic partnership efforts. Everyone is a little more hungry in leaner times, and it’s easy to find a strategic partner who is motivated by compensation—my favorite kind of strategic partner. Consider it part of the account acquisition cost. Would you pay $250-$400 for an account that will generate $12,000 or more in annual sales? You typically find these strategic partners at trade shows or servicing your existing accounts. I never hesitated to apply directly to them on LinkedIn. These strategic partners claim the same decision makers as you. They could be a business owner, an office supply representative, a floor service or a moving planner.
These people know which companies are moving, who are growing, who are unhappy and who are making the decisions. If they are a truly motivated strategic partner, the decision maker will be waiting for your call. My deal was simple: “Get me in the door, if I secure the account, you get paid.” Some strategic partners in this category can help you set the table for post-recession recovery.
3. Actively promote paid referral programs within your customer base. If an existing customer, office manager or facility manager refers you to another company, they receive a $50 gift card after the appointment and a $200 gift card when you install the location.
Not everyone is motivated by these types of programs, but the small percentage that are can keep the potential pipeline overflowing.
How to answer this simple question
Remember the simple question I referred to that becomes very easy to ask during a recession? “If I can show you a way to reduce your spend and improve your OCS and your refreshment program at the same time, is there any reason why you wouldn’t be open to a short meeting to learn more?”
It’s not hard to offer a better program for less money, (without cutting prices), if you’re willing to open your eyes and consider the possibilities. Here are five simple examples, with additional questions for the client to answer.
Is the customer ready to convert from a single cup to an artisan drip roast coffee program? Is the customer willing to replace bottled water with a high-end point-of-use system? Is the customer willing to switch from bottled beverage cases to single? beverage service unit. Is the customer willing to switch from packaged snacks to bulk snacks? Is the customer willing to try a multiple coffee strategy to achieve a lower overall price?
It always comes down to the same thing. Are you willing to swim against the current? Are you ready to throw out your cookie-cutter programs and develop simple yet creative solutions? If the answer is yes, it will survive more of the recession and be well positioned for the strong recovery that is just around the corner.
ABOUT THE AUTHOR
Bob Tullio is a content specialist, speaker, sales trainer and business columnist who advises entrepreneurs on how to build a successful business from the ground up. It also specializes in helping suppliers connect with operators in the convenience services industry – coffee service, vending, micro markets and pantry service specifically.
Tullio makes this promise to any company that hires him for a 30-minute or 1-hour Zoom call: “A short session with me will increase the performance of your sales team.”
Tullio can be reached at bob@tulliob2b.com or 818 261-1758.
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