We're all aware that the economy is shifting, but that does not mean automatic doom and gloom. Instead, you should look at this time as an opportunity. Typically, people get lazy in a strong economy when it comes to diligence with lead generation, cost controls and planning revenue growth. In a weaker economy, you have the opportunity to become more diligent in these areas and especially in the area of sales.

In an economic downturn, we tend to look at the business outlook rather than looking out for business. There is a big difference here in attitudes and behaviors. When you look at the business outlook, you believe all the bad news presented to you. When you look out for business, you increase your efforts to seek more business. The business is indeed out there; you simply need to be better at looking for it and getting it.

Tough economic times do not mean customers no longer exist or people don't have money to spend. It just means that customers are driven differently than in a boom economy. Every major study in sales since 1950 shows that price and budget are equal when it comes to buying motivations.

What swayed customers in the Great Depression, the recession of 1953-1954, the 1973-1975 recession, the 1980-1982 recession and today's recession? Customers want protection. They want to avoid risk and will pay a premium to do so, according to Neil Rackham, author of "Spin Selling," a book that offers compelling statistics on selling in a depressed economy.

During difficult economic times, people want security even if it is at a price. When people object to buying a membership because of price or because they say they have no budget, it's an easy way to get rid of membership reps because most reps won't probe further. In light of this, you need to ensure that you offer more of a return or value with your membership — and you need to ensure that your membership reps convey this when speaking with prospects.

Sales managers need to examine their cost per sale to determine how to minimize costs as well as intensify and refocus the sales effort. Two ways to beat any economic shift are by cutting costs and increasing sales. Yes, both can and need to be done in any economy. It takes diligence and rational commitment to bear a positive effect and avoid a negative effect. For example, eliminating sales people that are productive or even quasi productive to save salary costs is a bad move. Eliminating productive sales people leaves you with fewer people to create business. You are then selling only to those who walk in and call. The sales team's job is to get out and create business, not wait for call-ins and walk-ins.

Sales managers need to be up front and honest with their teams. If the club has had an unpredictably high attrition rate and a lower-than-projected new membership sales rate, the sales staff must catch up. Some managers don't want to put too much pressure on the membership reps, and therefore avoid implementing a catch-up plan. Instead, they allow the membership reps to simply go for the current month's goal (or worse yet, they lower the monthly goal) with disregard to the real picture. This spells disaster. You may hit the monthly goal, but you're not going to hit the year-end goal.

If you are 50 memberships down for the year, you have to make it up in a realistic time frame. Don't blow away the sales team by trying to make it up in one or two months. Instead, add nine more sales to your goal each month and catch up or even get a bit ahead over the next six months. Be honest with your team. If they trust you, they will redouble their efforts to hit the goals.

Sales managers also must refocus their commitment to the club's vision, mission and core values. Your management skills, vision and commitment to the club's core values are critical to create a path of leadership. If everybody came to work every day and did their best, we wouldn't need managers. The fact is that you need to create an environment that brings out the best in people.

Sales managers must make the best of their meeting times with membership reps. Your follow through with the team is critical to ensure that all cylinders are firing at all times. If you aren't already doing so, now is a good time to implement weekly individual meetings with your reps, in addition to your weekly group sales meetings. The purpose of the weekly 20- to 30-minute individual meeting is to inspire your rep, do one-on-one training and work on performance issues. The cornerstone of this meeting should be their weekly sales report. With that report, you can determine what their performance issues are — is it phone skills, closing skills, pre-tour work, qualifying, needs assessment, relationship skills, handling concerns, closing the sale, or lack of follow-up? Determine what is holding each of them back and work on those skills. So many tools are available to reps in the form of training books, tapes, videos, role-playing, etc. They can double their productive capacity overnight by committing to doing the things that will make them successful and discontinuing the activities that don't. Help them determine what they need to do to be able to continually repeat their best performances.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.