Change is difficult for humans and businesses alike, and envisioning how your solution can adapt to meet evolving requirements becomes more difficult the longer you are with an organization. As you think about making a change, it’s easy to start to evaluate if the effort is worth all of the potential outcomes; this includes debating with yourself: if the pandemic/recession might magically disappear, is it a true recession or just a blip? Is it possible that doing nothing could result in a return to the previous normal? The thought of the pushback from employees and customers, a rising demand for what you are currently offering, and the resources required all add to the uncertainty of change.
When companies first establish their business, they usually set out with a singular mission to solve specific problems or offer a specific solution. The vision tends to be narrow with regards to both the audience and the intended use. When first starting, this is a good plan. It’s a simple plan. And, it’s something that can be executed succinctly. There are many reasons that companies start with this mindset: it’s easier to focus their sales and marketing efforts; it allows for a more concise value proposition; it reduces the training requirements; and it makes branding easier. This approach creates early wins and defines the path forward until… the world turns upside down. When the world changes on a dime, a company has two choices: they can adapt, or they can stay the course and hope that the market conditions revert or evolve to a new state where the solution will again add value. A great business constantly assesses the skill set, money, and desire to make both incremental and wholesale changes - they have created a company growth mindset and would rather fail than not try something new and attainable.
A number of companies have responded to the changes through staff layoffs, which is a short-term solution resulting in immediate cost savings, a better cash flow position, and a smaller team. This survival tactic should not be mistaken for a pivot. It is a reactive survival tactic that has allowed an organization to continue their business while achieving less with fewer people.
Within the sales and revenue development functions of the business, most companies have tried to adapt to the new landscape by pressuring their sales team to do more and push harder. More calls. More meetings. More marketing. More of everything that worked before the market change. This "push through it" approach is failing because it ignores the fact that the change has altered what is important to the buyer; the priorities, process, ways of working, communication, needs, and goals are now different. More is not better and doesn’t drive the results that most companies are striving for.
The question then is: how do you build momentum and success during an unforeseen change in the market? One must evolve at the same (or a faster) rate than the environment. There are a number of possible pivots that will aid your sales teams while driving revenue and momentum through, and on the other side, of a massive change or recession.
Value Proposition - The value proposition may need to evolve. Clients that were looking to streamline the process for speed may now be looking to reduce costs. For a value proposition to work it has to: a) define the value that the client will receive with your solution, b) be relevant to the times, and c) personalize the value to a specific company/department/person. The relevant piece of the equation has moved significantly over the past six months, which has resulted in ineffective positioning for a number of solutions and companies.
When recreating a value proposition, it’s worth looking to expand the reach of the solution to new/different ICP’s (Ideal Customer Profiles). Don’t assume that the ideal customers are the same individuals that they have been historically, and ensure that the message is focused on them, not your company.
Use Cases - The best sales tactic is to focus on the outcome for the client. How the solution fits into the market, the outcome, and the value the client receives are at the core of a use case. How the solution was received in the market and used by clients in the past may not be how it will be used moving forward.
The solution doesn’t necessarily have to change; the target audience (ICP), application of how/where the solution fits, and the benefits derived may have to. Take the time to fully understand how your clients are using and benefiting from the solution. Think of all the possible scenarios where the solution could add value, and then build, document, and expand your use cases. Include others in the brainstorming session. Providing these ideas to the sales and marketing team will allow them to align the best solution and story to prospective clients and customers.
Client Support - Customers expect companies to predict their needs and provide support that exceeds their expectations. However, over the past six (6) months, they have been more forgiving, knowing that all businesses were reacting to a disruptive, unprecedented event that most contingency plans didn’t foresee. This expectation is quickly changing, and clients are becoming less forgiving. If you haven’t already, move support and meetings from phone to live video wherever possible. Video allows you to build stronger connections and results in a higher close rate and a higher client experience score. People still buy from, and look for support from, people. The change in how we work means we need to adapt to make real human connections.
Sales and Engagement Process - Start from a place of empathy and focus on the client rather than your solution. If this is a shift in process for your sales team, it’s time to invest in training. The prospect should be speaking 80% of the time, and your team should be actively listening (rather than queuing up the next thing to say). There are tools in the market that can provide insights to talk time and will allow the team to review, reflect, and modify their approach. Ask questions, listen to your clients, and position the solution to their specific goals and needs. The era of talking about your company and focusing the conversation on your solution is over. Make each interaction relevant, meaningful, and personal.
Monetization model - As clients and potential clients continue to evolve, so will their needs, challenges, and goals. With this, consider offering solutions on an MRR (Monthly Recurring Revenue) vs. an ARR (Annual Recurring Revenue) model. Long-term commitment from clients increases the sales cycle and adds friction to the buyer's journey. If you charge retainers, consider changing to a fee based on usage. If your solution covers the enterprise, consider offering a department level pricing option. If you offer value based pricing, ensure that the value of your solution is in-line with what it delivers today (this may be an opportunity to increase rates, too). Remember, clients are nervous with the current unknown and are not looking for big or long-term investments right now. In short, try to think like your prospects and clients in order to identify all the areas where you can remove friction. The goal is to reduce friction and make it easy for the customer.
Augment your services - If the demand for a solution is shrinking, look to add additional services, find partners, or extend your offering in an incremental but value driven way. Having commercial based conversations allows a sales person to swim slightly up or downstream to find opportunities and deliver additional value. Ideally, this should be done by extending one tier out from your current offerings.
Alter your solution offering - This isn’t optimal, but if your solution is no longer relevant, you need to change it.
There are a number of frameworks and methodologies to create an environment of success during the change management process. When deciding whether to make a change or not, it is important to remember that inaction is an action. Bring in a fresh pair of eyes when evaluating ideas and options and include your current customers as a part of the process. Not evolving to change will put you in an unfavorable position in the marketplace.
When the world changes around you, you need to evolve with it.
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