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

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

There are several actions you can take to ensure that your team is prepared for the changes that will affect your prospects as well as customers' purchasing behaviors and priorities.

I talked to's previous VP of Revenue Operations about this, and you can watch our entire conversation on the bottom of this piece. I've also elaborated on some of the strategies that we have discussed.

1. Consider rethinking segmentation in order to find new Opportunities for Growth

You're likely already looking at the data from outside to determine the extent to which your total addressable market (TAM) is shrinking. In the case of your particular market you may see open reports, market surveys or public announcements about expected changes to budgets and tech spend, etc.

But in volatile markets the information could become obsolete when they're made public.

Another way to find more current information is to read industry thought leader interviews and blogs. What are CEOs of industry and advisors posting on LinkedIn regarding their market?

As for internal data, on a high scale, you must constantly monitor your retention rates or bookings as well as your average size of your deals. The thing that many businesses do wrong is not staying on a the top of their game with regard to their market.

Not all segments of your TAM will be affected by external factors similarly. In particular, we've learned that certain sectors are more resilient to recession than others. In case you haven't discovered these sectors in your ICP, that's a good starting point.

There may also be specific areas or countries are where you operate that are less impacted by the economic slowdown.

Account-based sales companies are accustomed to having sales regions defined. If you're a non-local business, then you're likely to spend less effort on the marketing and sales processes based on where your customers or prospects are coming from. In a market that is more constrained, identifying healthy regions could be an enormous gain.

In particular turbulent markets, the state of specific regions or industries could change quickly. That's why it's important to be able to determine the return on every investment you make in the quickest time possible.

2. Speed Up Your ROI Measurements

It's not always possible to adjust for unexpected developments within your industry, however it's important to speed your ability to assess the effects on the investment you're making today.

• If you're accustomed to measuring the ROI of new product investment after six months, increase that number to six weeks. What leading indicators can you use to measure quicker?
• If you are able to beta test new products for six to eight months prior to making them available to the entire customer base, see whether you can bring an MVP ready for production within 3.

Think about how to test every financial or time purchase you're planning to make in order to make mistakes or be successful more quickly and adjust as necessary with a speed that is much quicker.

The other benefit of this is that you can provide value for your clients as quickly as possible. If they are tightening their spending, you need to demonstrate that you can remain a valuable source of value to them.

3. Training Your Sales Team to manage new Prospect Priorities

The value propositions that are successful particularly well during growth times may not be as effective in periods of slow or zero growth. Does your sales staff know the best way to change their strategies?

As an example, those who have always been most concerned about the way a product helped increase revenue for the business could become more interested in how it will help save the time of employees and other resources.

In general, we'll see more and more conversations centered about cost and the amount a company will spend on a solution over another. The company might be seeking tangible ROI, instead of potential development possibilities.

What we're notencouraging you to lower your prices, which will cause the customers to devaluing your product.

Sales must be more rigorous as they have ever been in ROI calculations, educating buyers about how they can justify the expense of your product as well as realistic, proven ways that can benefit the company.

4. Discover new ways to add or Promote Value

Inflation rates are soaring around the globe with no signs of slowing. With a decrease in expansion trajectories, you'll likely be experiencing an increase in internal expenses.

There is a chance that you are in a position where you need to raise the price of your products or discover methods to generate more revenue from your existing customers.

No matter what approach you're employing The key point is linking it back to value.

Give more information about the Value you've brought to the Product

If you choose to raise your prices, be sure to tie those numbers into the length to which your product has advanced.

• When possible, customize messages with added value for particular individuals.
• Make content for platform upgrades, new features, etc. that users might have missed.

Conduct training and case studies on features that are not used or add-ons.

If increasing prices aren't the best option, search at alternative ways of increasing profits from existing customers.

Based on the data we collect internally according to our internal data, offer upsells and add-ons usually represent between 30% and 50% of our customers' business. They are a way you'll be able to justify your prices and maintain the typical size of deal you're trying to capture while notraising the overall cost of your products.

• Are you able to identify customers that would be benefited from upgrading to the next level or a different plan?
• If you're in the process of preparing for an appointment to renew, how can you come equipped with evidence that your customers don't fully benefit from your company's offerings?

In the end, focus on the Value of your business and prepare for the possibility of being flexible

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

The firms that are most well-prepared for market fluctuations have the most position in value. They've invested in their product as well as in their customer relationships. They're also able to demonstrate that value.