As we are likely entering a recession, many companies are restructuring and looking over their shoulders. This poses a challenge, as it is much more difficult to acquire new customers.
For SaaS companies, this means looking for creative ways to increase revenue and maintain profitability. For SaaS salespeople, this means finding new ways to succeed in a shrinking market.
A 2018 study showed that while a majority of SaaS companies can stay afloat during a recession, many are likely to experience a downturn in growth. It’s clear that while survival during a recession is not a problem for SaaS companies, thriving during a recession is another matter altogether.
In this post, we're going to discuss how SaaS salespeople can thrive during an economic downturn.
1. Provide Value to Existing Customers
The key to success is to develop a strategy that helps you stay ahead of the competition. To do this, it’s important to focus on your existing customers and to continually look for new ways to add value. This means being proactive in your sales approach and considering all the possible solutions that could help your clients during this difficult time.
It’s easy to get excited about a new idea, but it’s not the time to implement it. Instead, focus on the things you can do to better serve your customers and keep them happy. One way to do this is to provide better value to your customers. You can do this by providing more information via email marketing, adding more value to your pricing tiers, or by offering more value-added features.
Daniel Apke, CEO of Land Investing Online says, “Providing value includes going beyond the initial sale to provide additional services, helping customers make the most of their purchases, and even offering discounts on products and services.”
These will help to keep your company afloat while the recession is in full effect.
2. Adjust Sales Strategy
In a recession, customers are more cautious and careful with their spending. They may be more likely to look for free trials and lower-priced options. As a result, SaaS salespeople need to be prepared to adjust their sales tactics to meet the needs of their customers.
Start by taking a look at your current sales strategy and evaluating what is effective and what isn’t. There are tons of ways to update your sales strategy for the current climate. Look for ways to provide customers with the most up-to-date solutions and services to ensure you remain competitive.
Start your free trial today
Get started in minutes. No credit card required.
3. Invest in Your Own Development
Investing in training can help SaaS salespeople stay competitive in a shrinking market. Training can help SaaS salespeople sharpen their sales skills and stay up-to-date on the latest trends.
SaaS salespeople need to keep their finger on the pulse of the industry. Paying attention to industry trends and market forces can provide valuable insight into the needs of customers in a recession. This can help SaaS salespeople identify opportunities and better understand how to best position their products and services.
Nate Tsang, founder & CEO of WallStreetZen, advises, “Utilize data to identify trends and opportunities in the market. Look for ways to capitalize on trends and target new customers. Use data to create targeted marketing campaigns and personalize customer experiences.”
4. Generate New Leads
There is no doubt that the sales industry is getting more challenging. However, it can also be a great time to find new ways to bring in new customers. If you are looking to up your game, consider trying out a new solution. This can be something like a landing page or a webinar.
It is also a good idea to reach out to potential leads online rather than spending time on the phone. Social media is a great way to find leads. In fact, a study showed that 82% of potential customers are on social media.
You just need to find the social media platform that will suit your needs. While your sales team can do this, you can also reach out to the public. You could even consider spending money on advertising these new leads.
5. Manage Resources
Building a sustainable sales process requires a healthy dose of resource management. In this environment, salespeople must be more strategic than ever before. The key to doing so is to manage your resources. For example, at the start of the year, you might want to consider an idea like a hiring freeze.
In general, managing resources means taking a look at what you have available and making sure that they are being used in the most effective way.
Jerry Han, CMO of PrizeRebel says, “It is incredibly important to look for ways to optimize resources. Technology can be a great tool for salespeople, as it can help you automate repetitive tasks and save time. Consider using automation and analytics to maximize efficiency. These can give you insights into customer behavior and preferences.”
Conclusion
The key for SaaS salespeople to thrive during a recession is to be flexible and creative. By understanding the needs of customers and adjusting their sales strategies accordingly, SaaS salespeople can still make the most of their efforts and maximize their success.
Though it can be frustrating when your sales aren't what they used to be and you aren't sure what to do, it is still very much possible for SaaS salespeople to mitigate the impact of a recession and take advantage of the opportunities it brings.
