How This Ression Has Changed The Nature of Order Losses

Prior to the recession when we polled people about the cause of their order losses the answer most often included a reference to either the competitor's "low-ball price" or to their own price being just "too high". What those answers mean and whether or not they are even honest answers is a whole other topic and not the subject of this article. The point is that those answers imply that orders were being lost to a direct competitor. In this recession, the answer we are getting to the same question is quite different. In 78% of responses we hear the word "budget". In other words the recesssion has transformed the order-loss scapegoat from price to budget.

Recessions seperate the most effective marketing and sales people from the ordinary. It is not good enough to beat your direct competition but you must win the budget battle as well. Any candidate for your prospect's budget dollars must be considered your competition. Anyone selling any big ticket item be it infrastructure, IT, or a new fleet of trucks is competing for a piece of a smaller budget that is less likely to include an automatic allocation for your category of offering. But how do you outsell unseen competitors who are selling products in totally different categories than yours, probably to different contacts within your prospect's organization? Sounds daunting!

While the recession is going to take its toll on even the best salespeople your best chance is to empower your coaches and prospects to fight the budget battle for you. Arm them with a quantified value proposition. They have the motivation. Afer all, they have the same pains and needs during a recession as they did before the recession. They want your solution for the same reasons they have always wanted it - so that they can work smarter and not harder. Help them! Work with them to put numbers to the benefits provided by your solution. If the unseen competition has done the same, then at least you have leveled the playing field and may the best investment win. If the competition does do not have a quantified value proposition, then you have a leg up and given your vast selling skills you should win your fair share.

Some tips on working with your coaches and supporters:

• Determine the top few benefits of your solution that will provide the most return on their investment. In many cases the top 2-3 benefits may provide as much as 90% of the ROI. If that is the case concentrate on developing a rock solid quantification of these benefits. This keeps it simple for your supporters.
• Which financial metrics should you use to document the financial impact of your soluiton? It is important to use the metrics that your prospect uses for internal budget decisions. Work with your supporters to make sure that you are meeting all of the requirements of their internal budgeting process.
• While it is good to be proud of your tools and your value proposition, it is important to have the financial justification for purchasing your solution internalized by your prospect. You want them to own the justification. It is important that they thoroughly understand it, and believe in it. Only then can they use it effectively to win the necessary budget allocation.

A quantified value proposition tailored to a specific prospect is a powerful weapon to wield in a budget battle. Marketing is typically the owner of the value proposition and sales has the responsibility to work with thier prospects to tailor it to their specific situation. It is all extremely customer focused work. Work that is essential given the continuing recession.

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