Four Things Sales and Revenue leaders can do to prepare for a Recession

Based on the International Monetary Fund, the global economy is forecast to contract by more than 3 percent this year from 6.1 to 3.2 then decrease in 2023. The rate of inflation is expected to stay high.

There are a variety of actions you can take to make sure your teams are prepared for changes in your prospects and your customers' buying habits and preferences.

I had a conversation with the company's former Vice President of Revenue Operations about this, and you can view our entire conversation at the end of this article. I've also expanded on some of the strategies that we have discussed.

1. Review Segmentation and Find New Growth Opportunities

It's likely that you're already looking through other data sources to see whether your total addressable markets (TAM) is shrinking. Based on the market you're in it is possible to find open reports, market surveys or public announcements on expected changes in budgets and technology spending, for example.

But in volatile markets they could be obsolete when they're made public.

Another way to find fresher takes are industry thought leader interviews and blog posts. What do industry CEOs and advisors posting on LinkedIn about their businesses?

As for internal data On a broad level, you should always be monitoring your retention rates as well as bookings and deal size. However, where many businesses go wrong is if they stay at too high a level with regard to their marketplace.

There aren't all areas of your TAM will be impacted by external factors in the same way. We know for instance certain sectors are more resilient to recession than other ones. In case you haven't identified these industries in your ICP then that's an excellent first step.

Additionally, there may be certain areas or countries are where you operate that are less impacted by inflationary pressures or the economic slowdown.

Account-based sales firms are used to defining sales regions. If you're a non-local business, then you're likely to spend less effort on sales and marketing efforts based on where your customers or prospects are coming from. In a market that is more constrained the ability to identify healthy areas can be a huge advantage.

Of course, in particularly volatile markets, the health of specific regions or industries could change quickly. This is why it's so crucial assess the potential return on any investment you're making in the quickest time possible.

2. Speed Up Your ROI Measurements

There's no way to adjust for unexpected developments within your industry, however it's important to speed your ability to evaluate the effect on the investment you're making now.

• If you're accustomed to measuring the value of your new product's investments after six months, switch that to six weeks. What indicators do you have to employ to assess quicker?
• If you test beta-testing new products for six to eight months prior to releasing them to your entire customers, consider whether you can bring an MVP into production within three.

Think about how to test every financial or time decision you're considering to ensure that you be successful or fail more rapidly and pivot as needed with a speed that is much quicker.

The second benefit is that it will provide new value for your clients in the shortest time possible. If they are tightening their spending, you need to demonstrate that you can keep adding value to them.

3. Train Your Sales Team to manage new Prospect Priorities

The value propositions that work really well in growth periods may not be as effective during periods of low or no growth. Does your sales staff know what to do to adapt?

In this case, customers who have always been most concerned about how the product can help companies increase their revenue could become more interested in how it will help save the time of employees and other assets.

We'll generally see increasing discussions around cost and about what an organization will pay on a option over the other. They might be looking for an ROI that is quantifiable instead of potential expansion opportunities.

What we're notencouraging you to do is lower your prices, which will cause your clients to become accustomed to the idea of devaluing your products.

Instead, sales needs to be more thorough as they have ever been in ROI calculations. They must also educate buyers about how they can justify the price of your product as well as real-world, proven methods to prove they will profit from it.

4. Find New Ways to Add or enhance value

The rate of inflation is rising all over the globe with no signs of slowing. Along with slower rates of growth, you'll be experiencing an increase in internal expenses.

You might be facing a situation where you need to raise the cost of goods or services or come up with innovative ways to increase profits from customers you already have.

Whichever method you choose to use, the key is to tie it back to value.

Give more information about the value you've added to the Product

If you do decide to raise your prices, be sure to connect those figures to how far your product has advanced.

• When possible, customize added value messaging for specific individuals.
• Make content for platform upgrades or new features. that users might have missed.

Offer Training and Case Studies Concerning Add-Ons or Features that have not been used.

If raising prices is not an ideal option, then look for other ways to increase profits from existing clients.

Based on our internal data Based on our data, upsells, or add-ons, typically represent 30% to 50percent of clients' sales. This is an avenue where you'll have the ability to prove your prices and maintain the average deal size that you're trying to capture but withoutraising your overall prices.

• Have you identified customers who would be benefited from upgrading to the next level or a different plan?
• If you're planning a renewal conversation, how can you come armed with proof that they don't fully benefit from the services offered by your business?

The bottom line: Concentrate on value and be prepared for the possibility of being flexible

It's a good thing that periods of steady expansion tend to occur following recessions. What you must prepare for is to be prepared to deal with them.

The companies that are the most prepared for market upswings are those with the best price positioning. They've put money into their products as well as in their customer relationships. They're also able to demonstrate that value.