Steps to Closing Deals during a Recession

In the early 1990s, sales slumped and diamond sellers increasingly faced competition from a wide range of alternative luxury products. De Beers however took a smart approach to boost their diamond sales. They gave diamonds a special significance, as a reflection of love, and translated these consumer emotions into purchasing behavior. Following this campaign De Beers' diamond sales ran ahead of market trends. This winning campaign demonstrated how companies should adjust their selling approach to suit existing economic trends.

With fragmented markets and economic uncertainty, closing business deals can be tougher than ever, as customers are increasingly cautious with expenses. Nevertheless, following the right selling approach can help close more deals even during recessions.

1. Qualify the Prospects
Instead of cutting down the market research budget, try to know more about how customers are responding to the recession. Determine their wants and motives. The financial crisis has rapidly changed the way customers react to product needs. They now spend more time searching for durable products and negotiate harder at the point of sale. They’re more willing to postpone purchases or buy less. For most customers, yesterday’s ‘must-have-features’ have become today’s ‘can-live-without’. Therefore, research your sales leads and prioritize them based on their ability and willingness to buy and pay quickly.

2. Predict and Prepare
Imagine what your prospects may be feeling during this economic downturn. Predict how they will react to your proposal and prepare your responses.

3. Become a Solution-Provider
Make your product/service indispensable. During recessions, people don’t want to spend on anything they don’t perceive as an absolute necessity. So create the perception of absolute need. Show your prospects how your product can be helpful for them during the tough times.

4. Sell the Benefits, not the Product
During recessions everyone is interested in buying something that can help them make more money or save money. So, it’s crucial to focus on the benefits that your product/service can give. If your product/service can help companies save money; market the savings. If it can help achieve better productivity; sell the added productivity.

5. Cost-Justify your Proposal
At a time like this, budgets are tight, so you must be able to justify your cost. Connect the dots for your prospects. If you can save them money, show them exactly how much money you can save. If you can help increase productivity, translate the productivity into dollars and cents.

6. Offer your prospects something more
Research your pricing options. Work with your CFO or other decision-makers and create alternate financing plans. Since your prospects may be experiencing cash-flow problems, giving them delayed payment options may be a good idea to close a deal. You can even offer special discounts or provide extra services for the same cost. Providing additional warranty on your products/services can also help. While these may not affect your budget much, they will go a long way in pleasing your prospects.

7. Stay Optimistic
Be confident when selling in a recession. Believe that you can close the deal. Nothing makes selling more difficult than the gloom-and-doom attitude. Hence keep your negative emotions in check. While it’s important to know what’s going on, don’t waste your precious enthusiasm dwelling on bad news. Rather than thinking about the collapsing economy, focus on how the situation presents interesting challenges for you to overcome.

“The only thing we have to fear is fear itself”, said Franklin Roosevelt during the Great Depression. The truth is that recessions are unavoidable. They happen as a normal part of the business cycle. But it’s important for every business to look past the recession and continue to set big goals. After all, every recession is followed by recovery and prosperity.