How to Sell During a Recession | Funnel Clarity (2024)

Published on February 16, 2023, updated on June 27, 2024

Recessions can be daunting for many salespeople. In B2B sales, it means that companies are much more restrictive with their budget and it’s much harder to close deals. Selling in a recession is difficult, however, it’s also not impossible to find success. In this blog, we will explore why it is so hard to sell during a recession and what B2B sales teams can do to ensure they are still winning deals during a recession.

Table of Contents

  1. 3 Key Takeaways
  2. Why is B2b Sales Difficult During a Recession?
  3. 4 Strategies for B2B Sales Success During an Economic Downturn
    1. Remind Customers of The Product's Value
    2. Establish a Consultative Sales Culture
    3. Level With Your Clients
    4. Improve The Sales Team's Skillset
  4. Benefits of Adopting These Strategies

3 Key Takeaways

  • Companies that have a reactive approach to account management will lose clients. Ensure your team regularly contacts your existing customers to reiterate the value your company provides and to keep the competition at bay.
  • Product features can be replicated, but the way your team sells is hard to copy. It’s critical that your team adopts a consultative selling approach and has the skill set needed to stand out above their competitors.
  • The strategies your sales team adopts to survive a recession can set the groundwork for explosive growth when the economy turns around.

Why is B2B Sales Difficult During a Recession?

Sales is never an easy profession but it is a lot easier to hit targets during an economic boom. The budgets get a little bigger and the consequences of making a purchasing error are much more manageable. Selling in a recession is difficult because the exact opposite is true. Budgets are reduced and an unnecessary or bad purchase decision can cost someone their job.

It would be wrong to assume that deals don’t close during recessions. Deals occur during economic downturns but they just become much harder to get through. Buyers use a lot more scrutiny when evaluating solutions. The strength of the product alone cannot carry a salesperson to their targets. To succeed in B2B sales during a recession, the salesperson needs to be well-prepared with the right skills and knowledge.

4 Strategies for B2B Sales Success During an Economic Downturn

Strategy #1: Remind Customers of The Product's Value

For a lot of B2B sales teams, account management is a reactive role. Account managers or client success reps will check in during renewal but only act reactively to customer complaints during the rest of the contract. This approach to account management can be very costly during an economic slowdown.

In an economic downturn, CFOs and business unit leaders will be looking at every expense to see where they can cut costs. The product that your team or company is selling might be really valuable to your clients but it’s not enough to rely on the strength of your product. When selling in a recession, sales leaders must instruct their account managers to contact each client and help them understand how indispensable your company’s solution is to their business. If your team isn’t addressing the client’s pain points directly, your competitors will. Learn more about account management best practices.

Strategy #2: Establish a Consultative Sales Culture

As mentioned above, a sales team can’t just rely on the strength of a product during a recession. Your competitors will also sharpen their products and ensure they have features that the customer base wants. These sorts of features can be replicated however, a consultative selling culture cannot be replicated so easily. The way that your salespeople sell can be the competitive advantage your sales team need to edge out your competition during a recession.

When buyers are making a purchasing decision during an economic slowdown, they are looking to work with people they can trust. There are serious consequences for making a bad purchasing decision so buyers want to work with salespeople that make them feel reassured and understood. The only way to accomplish this is for a salesperson to adopt a consultative approach to selling.

Strategy #3: Empathize With Your Clients

It is more than reasonable that clients would want to cut expenses wherever they can to survive an economic downturn. One of the keys to sales success during a recession is having the account management team take a proactive approach to their role. On top of reiterating the solutions value to the clients, sales teams should also be ready to restructure existing deals to accommodate their clients.

This doesn’t mean resorting to discounts. Perhaps a longer-term deal would be more beneficial to your team and for the client. Companies will be reevaluating their existing vendor agreements anyway so it is in your best interest to get ahead of it and see what your account managers can do to make the existing contract more appealing to the customers. This way, the seller has a chance to influence the client’s decision regarding which vendors will be cut from the budget.

It’s also important to level with your customers to keep your competition at bay. The wallet share is much smaller during economic downturn so there are more head-to-head competitions for the same wallet share. Contact your customers early and frequently to ensure you stay ahead of the competition.

Strategy #4: Improve The Sales Team's Skillset

Product features can be copied, but your competitors cannot replicate the way your team sells. Consultative selling is vital during an economic downturn but there are other skills that are just as important. As shown above, proper account management skills are critical for success when clients are looking to trim their budget.

Another skill set that is vital to increasing sales during a recession is prospecting. While there are ways to limit churn, every company will inevitably lose at least a handful of clients. That is not a huge issue if your sellers are also bringing in new business. It will require more persistence and effort but with proper B2B prospecting skills, sales teams can consistently add new meetings and opportunities to the sales funnel. You can also learn more about the most effective sales training techniques to ensure your team is equipped with the sales skills they need to add new clients during a recession.

Benefits of Adopting These Strategies

The four strategies mentioned above will help your sales team get through a recession. If these strategies are adopted, it will also ensure that your sales team is ready for explosive growth when the recession turns around. During an economic boom, these strategies and skills will elevate your sales team above the competition.

To learn more about how Funnel Clarity can help you adopt and execute these strategies, you can book a free consultation call with us today.

Learn How to Prepare Your Team for Selling in a Recession

Request a free sales consultation to get started

Get Started Today!

How to Sell During a Recession | Funnel Clarity (2024)

FAQs

How to Sell During a Recession | Funnel Clarity? ›

Food will always be a required expense for consumers. So grocery essentials such as produce and dairy, non-perishable food, and pantry staples are among the most recession-proof items you can offer.

What's the best thing to sell in a recession? ›

Food will always be a required expense for consumers. So grocery essentials such as produce and dairy, non-perishable food, and pantry staples are among the most recession-proof items you can offer.

How to increase sales during a recession? ›

How To Grow a Business During a Recession
  1. Diversify your products and services.
  2. Cut costs wherever possible.
  3. Use technology to your advantage.
  4. Get creative with your marketing.
  5. Right-size your sales force.
  6. Cross-sell and upsell.
  7. Target new markets.
  8. Increase marketing efforts.

How do you sell real estate in a recession? ›

Buyers during a recession are typically not looking for a project home. Buyers want a move-in-ready home as they are not looking to take on a great deal of renovations at this time. Making your home move-in-ready to the extent that you are able to do so is one of the best tips for selling your home right now.

Is it good to sell a business during a recession? ›

The reality is every business is unique, as are the timing and reasons to sell. For businesses that are well positioned, a recession can actually be an ideal time to sell. However, the “why” that is driving a business owner's desire to exit should come first.

How do you make the most money in a recession? ›

Dividend-Paying Large-Cap Stocks

"Large-cap stocks are generally considered less volatile than small-cap stocks and therefore may be more attractive during a recession," says Collins. "In addition, companies that pay dividends tend to have stable cash flows and may be better positioned to weather a downturn."

Should I sell everything before recession? ›

When things are looking bleak, consider holding on to your investments. Selling during market lows can be one of the worst things you can do for your portfolio — it locks in losses.

Do realtors do well in a recession? ›

As a result, some agents may see a significant decrease in their annual earnings during a recession or need to work harder to earn the same amount. In the end, being a real estate agent may be recessionproof because there will always be a need for this service, but being a successful one may be a lot harder.

How do you thrive in real estate during a recession? ›

Focus on cash flow.

Even if property values decline over the short-term due to rising interest rates, good recession-resistant commercial real estate investments such as self-storage can continue to generate solid cash flow through all economic cycles. Month-to-month leases allow rents to be quickly adjusted to market.

Why is it difficult to sell a home during a recession? ›

Buyers in a recession may struggle to purchase your home if mortgage rates remain high, and your home may not sell for as much as it could have gotten during the height of the seller's market.

How to sell in a tough economy? ›

20 Strategies For Increasing Business Sales In A Tough Economy
  1. Evaluate Your Staff And Pipeline. ...
  2. Increase The Compensation Of Salespeople. ...
  3. Determine What's Behind The Decrease. ...
  4. Focus On The 'Why' ...
  5. Conduct A Service Audit. ...
  6. Directly Engage With Customers. ...
  7. Assess How Your Offerings Create Value.
Mar 28, 2024

What business to avoid during recession? ›

But certain businesses are more recession-proof than others. Five businesses to avoid starting during a recession include luxury retail, hospitality, manufacturing, construction, and home services. We'll explain why and go into some of the advantages and disadvantages of opening a business during a downturn.

How to sell in a down economy? ›

7 Tips for Selling into a Recession
  1. No Excuses. Let's begin by agreeing that you won't use bad economic conditions as an excuse to revert to bad business practices. ...
  2. Stay Focused. ...
  3. Cast Further Afield. ...
  4. Climb Down the Ladder of Lead Generation. ...
  5. Put the Gun Down. ...
  6. Revisit Your Clients' Needs and Your Product Mix. ...
  7. Make a Promise.

What is worth money in a recession? ›

Recessions are periods of widespread economic downturn. Cash, large-cap stocks and gold can be good investments during a recession. Stocks with sensitive prices and cryptocurrencies can be unstable during a recession.

What do people buy the most in a recession? ›

Consumer Staples
  • Food. Everyone needs to eat and offering some food items can be a great way to expand your product offerings during an economic downturn. ...
  • Personal Care Items. ...
  • Cosmetics and Related Services. ...
  • Pet Care Products and Services. ...
  • Clothing. ...
  • Baby Items.

What business does well in a recession? ›

Companies in the business of providing tools and materials for home improvement, maintenance, and repair projects are likely to see stable or even increasing demand during a recession. So do many appliance repair service people. New home builders, though, do not get in on the action.

What is most needed during a recession? ›

Companies that make basic necessities like consumer staples and food will always have demand, even during an economic downturn - as people need to prepare meals, wash, clean, and so on.

Top Articles
How high can commercial planes fly? | Veena World
Essentials, Key Elements & Best Practices
Evil Dead Movies In Order & Timeline
Victor Spizzirri Linkedin
Washu Parking
Shoe Game Lit Svg
His Lost Lycan Luna Chapter 5
Ixl Elmoreco.com
Free Atm For Emerald Card Near Me
9192464227
Triumph Speed Twin 2025 e Speed Twin RS, nelle concessionarie da gennaio 2025 - News - Moto.it
360 Training Alcohol Final Exam Answers
5 Bijwerkingen van zwemmen in een zwembad met te veel chloor - Bereik uw gezondheidsdoelen met praktische hulpmiddelen voor eten en fitness, deskundige bronnen en een betrokken gemeenschap.
Erskine Plus Portal
Puretalkusa.com/Amac
Tribune Seymour
Heska Ulite
South Bend Tribune Online
Brutál jó vegán torta! – Kókusz-málna-csoki trió
Assets | HIVO Support
Ivegore Machete Mutolation
Top tips for getting around Buenos Aires
Labor Gigs On Craigslist
Kitty Piggy Ssbbw
Craigslist Free Stuff Merced Ca
1773X To
Missed Connections Inland Empire
Water Trends Inferno Pool Cleaner
Amortization Calculator
Lbrands Login Aces
Infinite Campus Asd20
Nurofen 400mg Tabletten (24 stuks) | De Online Drogist
Colin Donnell Lpsg
Craigslist Red Wing Mn
Police Academy Butler Tech
Pillowtalk Podcast Interview Turns Into 3Some
Regis Sectional Havertys
Los Garroberros Menu
Claim loopt uit op pr-drama voor Hohenzollern
Smith And Wesson Nra Instructor Discount
Bernie Platt, former Cherry Hill mayor and funeral home magnate, has died at 90
Pepsi Collaboration
Trizzle Aarp
Busted Newspaper Campbell County KY Arrests
Skyward Marshfield
Pa Legion Baseball
UT Announces Physician Assistant Medicine Program
Amateur Lesbian Spanking
Missed Connections Dayton Ohio
Craiglist.nj
Ippa 番号
Latest Posts
Article information

Author: Neely Ledner

Last Updated:

Views: 6611

Rating: 4.1 / 5 (62 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Neely Ledner

Birthday: 1998-06-09

Address: 443 Barrows Terrace, New Jodyberg, CO 57462-5329

Phone: +2433516856029

Job: Central Legal Facilitator

Hobby: Backpacking, Jogging, Magic, Driving, Macrame, Embroidery, Foraging

Introduction: My name is Neely Ledner, I am a bright, determined, beautiful, adventurous, adventurous, spotless, calm person who loves writing and wants to share my knowledge and understanding with you.