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Business Acceleration/Organizational Capability Risk MatrixTM
As economic uncertainty continues, smart businesses are looking for ways to grow in these difficult times. Cost reductions do not build sales. Business growth is the only option.
This is the first of a series of three Marketing Navigator newsletters detailing 12 Ideas to Accelerate Business Growth. We will focus on four ideas in each of the three installments. All 12 are detailed on Page 28 here in an article in Made in PA magazine published by the Pittsburgh Technology Council .
Implementation
Since the financial crisis of September 2008 much has been published by the business press detailing easy steps to improve sales in a down economy. As we developed this article and considered ways to accelerate growth, we created an approach that links cost risk analysis to organizational execution.
In order to analyze these 12 ideas, you must evaluate each by balancing the cost risk versus your team’s ability to execute. Therefore, these decisions are best made by a collaborative group, not alone. We suggest forming a motivated and focused team who can confidently discuss, evaluate and move forward to implement some or all of these 12 acceleration options. Your team should be comprised of leaders in the organizational culture who have the desire to own the results. While some options may seem obvious, they are based on our recent work with manufacturing clients.
The first four of the 12 Ideas to Accelerate Business Growth are:
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Increase “Feet on the Street” and Direct Sales Contact Activity. Now is no time to reduce direct sales contact. Consider smaller sales territories and outsourcing some sales activities especially among manufacturers’ representatives. It is also time to honestly critique and upgrade sales personnel. There is a wealth of talent now available to strengthen your direct selling efforts, if needed.
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Add Distributors as a means of placing additional “feet on the street” for sales activity. Distributors can help to penetrate key market segments not thoroughly covered by other sales people. For example in the manufacturing supply chain when OEM “build schedules” soften, the aftermarket picks up due to increased demand for repair. Distributors prepare your business for that shift.
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Develop a lead qualification program. Keeping your selling system focused is critical. Invest in a process to contact target prospects. Provide both your direct and outsourced sales force (manufacturer’s reps, distributors) with these pre-qualified sales leads. This will prioritize their business development activity to your agenda. Some argue a sales force should qualify their own sales leads. We disagree. Not in a downturn! Ask prospects a series of basic questions to qualify (or disqualify) them as a prospect. With the right direction, you can accomplish this goal with existing personnel. You might be surprised at what your sales force can do when they focus on turning those prospects into customers.
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Increase Promotional Activity. When times are lean, the wrong choice is to cut back on promotion. Increase your share of voice while your competition is cutting his. Promotional activity should include incentives, selective discounts, trade event participation and direct offers made to new prospective customers. Business to business firms need to look at what their consumer counterparts are doing successfully as an example of “out-of-the-box” thinking.
Where do we go from here? The next Marketing Navigator newsletter will explore the next four Ideas for Business Acceleration starting with Digital Marketing. Again click here for the entire Made in PA article.
At Crossroads Development Group we define marketing as “accelerating focus for predictable business growth.” Focus and predictability, as dimensions of that definition, require choices. Regardless of the choice, always put your customer first and remind your business culture to never forget their importance. It is about serving customers with a “value proposition” that your people and culture are proud to endorse.
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