By Pat Hinds
Recently I have been working with a client to implement POIM’s Results-Based Selling; part of the process is to identify the revenue generated in a specific vertical that the client has identified and compare it to revenue growth in previous years. The results from the analysis of the data have shown the impact the recession has had on new product sales and revenue growth into the targeted vertical. When analyzing the data and putting together a sales and marketing plan to address the revenue gap, companies need to factor into the plan whether this economy is going to be the “New Normal.”
I came across this term “New Normal” early in the year and the concept essentially means that access to capital will not return to levels seen for most of the decade resulting in less spending and more savings. Listed below are excerpts from two articles that support the notion that we are headed into a period of “New Normal”:
– The new normal could be a lot more frugal.
– One possibility suggests itself. This is that we’ll never get back to normal. Or, more accurately, that we’ll make a transition to a new normal.
– One feature of present-day times is very revealing. Spending, in the sense of high spending, has gone out of fashion.
– What’s in fashion instead is saving.
Household Net Worth in U.S. Increases by $2 Trillion
Household wealth in the U.S. increased by $2 trillion in the second quarter, bringing an end to the biggest slump on record.
The advance reflected the biggest quarterly jump in stock prices since 1998 and the first increase in home values in more than two years. Together with increased savings and less debt, the gain in wealth is part of the mending process consumers will undergo in coming years before spending can gain speed.
One of the biggest challenges I see for companies is the acceptance of the concept of the “New Normal” at the sales person level. I met a business development manager at the grocery store and asked him how his company was coping with the recession and he indicated that his company is starting to see some green shoots of growth. I think the mistake that sales people and companies are making is translating the green shoot into a robust economy that will return to the growth we had prior to the economic meltdown.
Sales organizations cannot afford to wait for the economy to return to normal; they need to take a close look at the sales data they have compiled since the beginning of 2009 and build sales and marketing plans that incorporate the New Normal. Companies need to understand what impact the recession has had on their product line revenue since the beginning of 2009 and adjust the focus of the sales and marketing plan to accommodate this. It will be the companies who best adjust to the New Normal that will grow revenue, profitability, and market share.
Topics: Sales Consulting