Do you need a makeover? There are several reality TV shows
that have become popular by either helping people de-clutter their homes,
revamp their houses, discipline their children, lose weight, or find a mate.
You name it, Americans have a fascination with makeovers. In typical style,
these shows have little to do with tweaking what is already going on as much as
it is bulldozing one’s life and starting from scratch.
Have you considered a makeover in your business? If you have
been watching your sales take a pounding, you have probably had several of
those tense what-are-we-going-to-do-differently meetings with your sales and
marketing staff. The outcome of such meetings is inevitably that change is
needed, in one way or another, because simply standing pat does not hold water
when the recession has shot holes in your old business sales bucket. If a
makeover is inevitable, what sort of change will you make? Here are some
strategies you may want to consider
Getting back to your roots
In 1989, United Airlines aired a poignant commercial in
which a sales manager announces to his staff: "I got a phone call this morning
from one of our oldest customers. He fired us. After 20 years, he fired us.
Said he doesn’t know us anymore. I think I know why. We used to do business
with a handshake, face-to-face. Now it’s a phone call, a fax, ‘get back to you
later,’ with another fax, probably.” Now this was aired before we had text
messaging and email, but the point is that as businesses grow, they can grow
away from the service (and customers) that made them good in the first place.
During economic hard times, this is challenged all the more. Companies have
less dollars to throw at golf outings and networking events that are the backbone
of one-to-one contact with your customers. That does not mean you need to lose
contact or the perspective on the importance of relationship-driven selling.
What must you do to keep your clients happy? What can you do to gain the trust
of new clients? Getting back to your roots is a first step. This may mean that
your sales staff will have to do some cold calling that they did not need to do
just a few years ago. It may mean that you will have to readjust your marketing
strategies to get in front of your client on your initiative instead of waiting
on them to come to you. That United Airlines commercial ended with the sales
manager saying he was going to fly out to see that old client. That may be your
best first step.
Zig when all others zag
During the Great Depression, patents for new innovations
fell as sales collapsed. Companies just did not have capital to spend on
research and development. However, there were some companies that bucked this
trend. One of them was the DuPont Corporation. They actually spent more on
R&D during the 1930s than they did before the Great Depression. Even as
their sales fell by 15% in 1930, they made a strategic decision to push ahead
with the development of several synthetic rubber and plastic projects. The
results were the invention of nylon and neoprene, among other materials that
became the hallmark of DuPont’s growth in the middle part of the century. While
other companies were trying to hold their own, DuPont came out of the Great
Depression as the world leader in their industry.
Take a good look around you. What is your competition doing
during these slow sales cycles? Look for innovative ways you can differentiate
yourself from the rest of the pack. Set yourself up for success once the
economy turns around.
Wrecking ball or a hammer?
There are times when the old model needs to be fixed up.
There are other times when the old model needs to be demolished and a new model
constructed. Smith Corona was a world leader in office machines for nearly 100
years. They produced typewriters. They were very creative within their
industry, coming up with items like the portable electric typewriter and
replacement ribbon cartridges that kept your hands from being smeared with ink.
When the personal computer began to replace the typewriter, Smith Corona made a
strategic error: they decided to stay the same. Unwilling to see the end of the
line for the typewriter, they saw their sales of typewriters and components
decline until they filed bankruptcy in 1995. It may be that your product
offerings need to change. It also may be that your sales methods need to
change. The Fuller Brush Company was founded by Alfred C. Fuller in 1906. His
method of selling household products door-to-door made his company synonymous
with the technique. However, the world changed and its perspective on
door-to-door sales soured. With declining sales, Fuller Brush Corporation
changed its sales method in 1992, allowing sales staff (both men and women) to
form buying networks of friends and family. It eliminated the middle
distribution position and let the sales reps deal directly with the company.
This was a major shift away from the way FBC had always operated, but it was
necessary for the life of the company.
What changes do you need to make to keep sales coming your
way? In a recession, standing pat is a recipe for going out of business.
Evaluate how you are going about sales and don’t be afraid to challenge your
old way of doing things.
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Innovation Lessons from The Great Depression, by Graham Griffith. Global Economic Watch, http://community.cengage.com
Innovation lessons from the 1930s, by Tom Nicholas. McKinsey Quarterly, December 2008, http://www.mckinseyquarterly.com
Smith Corona Corporation history http://en.wikipedia.org/wiki/Smith_Corona
Fuller
Brush History, http://www.fullerbrushdwt.com/history.htm
Photo by Carrie Bottomley