Four Tips Sales and Revenue managers can do to prepare for a recession

In accordance with the International Monetary Fund, the global economy is expected to contract by almost 3 percent in the coming year, from 6.1 to 3.2 and then slow down by 2023. Inflation rates are expected to remain at a high level.

There are a variety of steps that you can do to organize your go-to market teams to be able to adapt to changing preferences of prospective clients as well as the customers' purchasing behaviors and needs.

I talked to's previous Vice President for Revenue Operations about this, and you can watch the entire discussion at end of this article. I've also outlined some of the tactics we been discussing.

1. Rethink your segmentation strategy to identify new growth opportunities

You're probably looking at external data for indications of whether your total addressable markets (TAM) is decreasing. In the particular market you're in, there may be research or articles that are public about expected adjustments to budgets or technology spending, for example.

In volatile markets they could become out of date the moment they are released.

Another method to gain new perspectives is through interviews with thought-leaders from the industry and blog posts. What are industry CEOs and advisors have to say on LinkedIn regarding their business?

As for internal data, on a high scale it is essential to be keeping track of the rate of your net retention or bookings as well as your typical deal sizes. However, where most companies get wrong is if they stay on the high end in their market analysis.

The different segments in your TAM will be affected by external factors precisely the same way. Particularly, we've discovered that some industries are more resilient to economic downturns than others. In case you haven't identified the industries that are more resilient to recession in your ICP this is a great first step.

There are specific countries or regions in where your business is conducted that are less impacted by recessions, or the effects of inflation.

Companies that sell through accounts are used to having specific sales regions. If you're a location-independent company, you're more likely to spend less effort on marketing and sales efforts based on the location your customers or prospective customers come coming from. In a market that is restricted and with greater competition, being aware of which regions are the most profitable to focus your efforts is a significant advantage.

Naturally, in extremely unstable markets, the situation of particular industries or areas are subject to rapid change. This is why it's so crucial assess the potential return on any investment you're making immediately.

2. Accelerate Your ROI Measurements

It's not always easy to plan for unexpected events in your market, but the most important thing is speeding up the capacity to analyze the results on the investment you've made now.

• If you're used to assessing the worth of your latest product after 6 months, change that to 6 weeks. What indicators do you have to utilize to determine quicker?
• If you are able to test the latest product for six months prior to making them available to all customer base, think about how you can do to get an MVP into production within three.

You should think about methods to assess any time or financial investment that you make in order to make sure you don't fail or succeed more quickly and pivot when necessary at a quicker speed.

A second advantage is the ability to provide worth to your customers within the fastest time. If you're witnessing your clients reduce their spending, it is important to demonstrate that you will remain a valuable supplier of value.

3. The Sales Team is trained to Handle New Prospect The most important issues

Value propositions that work efficiently during growth periods might not be as successful when there is slow or even zero growth. Does your sales staff know what to do to adapt?

For instance, the people who have always been the most concerned about how a product helped the company grow revenue might become more attracted to how the product will help save employees' time along with other valuable assets.

There will be a lot of discussion regarding cost, as well as what the company will spend on a solution over another. A company may be looking for concrete ROI instead of the possibility of expansion.

What we're doing and aren'tencouraging companies to achieve is lowering your price, which encourages your clients to become accustomed to the notion of losing value for your products.

In addition, sales must also be more exact than ever with regards to their ROI calculation. Additionally, buyers must be educated on the best ways to justify the price of your product , and also realistic, proven ways that can make money off it.

4. Find new methods to increase value or promote

Inflation rates are rising across the globe, with little indication that they will slow down. So along with decreased expansion trajectories, you'll likely have to deal with rising costs internally.

It is possible that you're in a position that you have to increase prices of your products or services or come up with new ways to boost the amount earnings you make from your existing customers.

No matter what technique you decide to employ The key to success is connecting the method back to value.

Provide more information regarding the value that you've contributed to the product.

If you choose to increase rates, ensure that you link those prices with the amount to which your product has come.

• Whenever possible, personalize messages which have value for specific individuals.
• Create content on platform updates and new features. Users might not have noticed.

Offer training and case studies Concerning Add-Ons or Features that have not been used.

If increasing the price isn't the ideal option, look into alternatives to increase the revenue of your current customers.

Based on internal data according to our internal data, offer upsells and add-ons usually account for 30 to 50 percent of our clients' revenue. This is a way to be able to demonstrate that you're spending money and keep the size of deal you're trying for while notraising your prices overall.

• Do you know of any customers who might benefit from upgrading to the next plan or to a different plan?
• If you're planning an renewal meeting, how can prepare with reasons why they won't gain from the services offered by your business?

Bottom Line: Focus on the Value of your business and prepare for a flexible approach

There is a bright side: periods of steady growth are often followed by recessions. All you have to prepare is to handle them.

The businesses that are prepared for the market's fluctuations are the ones with the most position for value. They've made investments in their products as well as in their relationships with clients. And they're able to prove their worth.

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