By Pat Hinds,
An article in the Calgary Herald entitled, “Markets react to gloomy outlooks” is a reflection that the economy is still moving in the direction of the “new normal”. At POIM Consulting Group we looked at the article to determine what impact the New Normal has on the sales industry and why companies need to adopt sales2.0 and results based selling techniques.
What is the New Normal?
(Article) “No doubt the U. S market has downshifted more than stock markets expected,” said Douglas Porter, deputy chief economist for BMO Capital Markets.
The worry, however, is slow growth could potentially become deflationary, and if there is one thing economists fear more than inflation, it’s deflation.
(Impact on Sales) Pressure on profit margins will reduce the amount of sales people and force existing sales teams to sell more. Increased productivity gains from sales will be key to adapting to the new normal.
Increased Competition from Globalization
(Article) According to Porter, the lack of confidence stems from the European debt crisis from earlier this summer.
(Article) The first is that even if China’s economic growth is slower — at eight or nine per cent — that’s still a strong number.
(Article) The only conclusion to draw from Wednesday’s stock market sell-off is a sign investors had been believing that the worst was over. The actions of the Fed, the Bank of England along with China’s data, however, have shown otherwise.
(Impact on Sales) Globalization impacts how regional economies react and perform this will is the same for regional businesses. In the new normal companies not only have to react to the competition down the street they also need to react to competition around the globe.
Sales people must be be aware that they need to protect their sales territories from more competitors that are going to sell on price. It is key that sales people adopt solution selling techniques with increased customer activity.
New Normal is very complex subject with many variables: deflation and increased competition are two aspects that sales organizations need to adapt to to prosper in the new normal.
Topics: Sales Consulting