My weeks and days are full of strategic and tactical discussions about how to successfully work through this uncertain and, to a large degree, stagnating market.
Here are some of the insights I have gathered and my thoughts.
This isn’t forever.
Recessions start in various ways — economic missteps, market structure issues, crisis contagion, pandemics, and other acts of God. So, they’re unpredictable.
Ironically, in the case of this recession (are we even really in a recession), we are trying hard to guess the precise timing of the recession, the bottom, and the climb out.
We’ll certainly fail.
But, assuming you believe in the resilience of America and the hardy and innovative people that have defined her from inception — this will not last.
In fact, given historic data, it will be relatively short — 10 months or less.
How do we forecast the future? What data should we watch?
During business-cycle transitions, I recommend that you suspend forecasts.
You’ll often see public companies do this, and for a good reason.
Forecasts are based on consistent business activities that are highly correlated to outcomes. When those activities are radically disrupted — you cut 20% of your sales force and 50% of your marketing budget, and conversion rates plummet — who knows what you’re going to generate in units and revenue?
Inaccurate forecasts and assumptions cause us to make really bad decisions from the C-suite to the sales call.
Okay, but do you ignore the data and stop watching your metrics?
No, prioritize and upgrade your data science capabilities and tech stack.
One of your biggest competitive advantages in this market is how fast you can reset your baseline with competent data analysis, giving you the confidence to run your business again aggressively.
Here are a few places to start:
Marketing — What channels and spends are working? Trace to revenue. Traffic doesn’t necessarily matter. If you’re not doing consumer direct via digital, you’re already standing in a ditch.
Sales — What is your contact rate? Digital (and the pandemic) has changed how customers expect to be contacted. Hint: it’s not the phone. What is the status of your pipeline? What are the new pull-through rate and periods? Do you have the right product(s) for the current market and customer?
What are top-performing sales and marketing operations specifically doing?
Many of us are frustrated, nervous, and even a little scared.
But there are winners out there.
People and organizations are doing things that are working and growing their organizations in this challenging market. Perhaps even more interesting: people are investing and starting up new ventures in this market.
So, again, there are winners in this market.
Here are some of the things I’m personally seeing winners doing.
Tightening the interfaces between lead generation and sales
Digital has forever changed sales and marketing operations.
Sales and marketing roles, responsibilities, and skills are rapidly blurring and blending.
The role of CROs (Chief Revenue Officers) is becoming more common, and they are creating integrated sales and marketing teams.
Alternatively, sales directors are engaging digital marketing agencies to pull the lead generation activity closer to their sales team.
Both scenarios are a trend in organizations taking more control over their consumer direct marketing and making lead generation a core competency (and asset).
💡 If you’re exploring this strategy, set up a discovery call with my agency.
Leveraging AI/ML to identify and prioritize high-value leads and sales agents
Sales and marketing operations are full of data.
We’re buying or generating hundreds, in some cases thousands, of new leads every day.
How do you sort the good from the bad? How do you help your sales agents stay motivated and productive in a challenging market? How do you get the most out of your marketing budget and sales resources?
Leverage The Machine.
Computational power and data science have matured so that artificial intelligence and machine learning are no longer academic novelties. They are foundational elements of any highly effective consumer database.
It’s all around you.
When you’re on Facebook, Instagram, YouTube, Netflix, Linkedin, and on and on.
So, why is it not in your sales and marketing operations tech stack yet?
As I said, this will be a foundational element, but until then, it will be a huge competitive advantage. With AI/ML technology in your sales operation, you can:
Turn your lead management data into predictive lead-scoring values
Turn your sales performance data into predictive sales agent routing
Identify good and bad leads on a lead-by-lead basis and handle them accordingly. Even the BEST lead providers generate DUDS, and even the WORST lead providers generate STUDS.
You can start grading the lead, not the channel!
💡 If you’re exploring this strategy, set up a discovery call with ProPair.
Automate sales activities inside slowing and, in some cases, shrinking pipelines
Sales cycles are lengthening. Pipelines are shrinking.
There are fewer active opportunities for sales agents to work. Their activities are less productive and thereby frustrating.
Smart sales operations are again turning to technology and building more sophisticated lead management systems. These initiatives enable sales agents to:
Work deeper into the CRM — working leads longer and re-engaging aged leads
Allowing sales agents to get more creative in working their warm leads
Allow sales agents to spend more time on engaged and viable opportunities
Very specifically, this involves leveraging your CRM to automate:
Lead distribution, re-distribution, sales cadences, and other creative lead management strategies
Trigger automated emails and text messages and queue phone calls based on sales activities and the status of leads.
💡 If you’re exploring this strategy, set up a discovery call with SDP Solutions.
Improving capabilities to nurture leads over time (infinitely)
One final strategy — nurture your leads forever.
I’m not talking about pounding them with endless calls, emails, and texts.
No, instead, create a valuable and never-ending stream of content.
I recommend developing a creative email newsletter, podcast, or YouTube channel concept.
People love content.
You must figure out a clever angle and consistently deliver a quality product.
Here are some ideas:
Market insights newsletter — think along the lines of a high-end investor newsletter.
Home buying or real estate investing YouTube channel — everyone goes to YouTube to figure everything out. Here are a few great examples: Win the House You Love, Jeb Smith, or if you’re a bit of a character, try something like Meet Kevin.
Podcasts are becoming a rich source of consumer attention — for this one, you’ll have to be a bit more creative, in my opinion, and build something that will attract long-term subscribers. You can get inspired by one of the originals, Dave Ramsey, or something a little more creative and hip like Chris Hutchins’ All the Hacks.
💡 If you want to explore a creative lead nurturing strategy, set up a discovery call with my agency, Kaleidico.