Practical Tips On Customer Acquisition During A Recession

business partnership concept. Multiple exposure...getty

Leading a company in a recession requires grit, perseverance, and determination coupled with IQ/EQ and real time problem solving skills. As boards look to coach their CEOs and executive leadership teams, I share a few practical / actionable ideas along with a philosophy and approach for consideration:

In times of great uncertainty, it is very important for CEOs and leadership teams to be present, in person, in front of employees. I believe it is valuable that the CEO is spending a very significant amount of time sharing the vision for the future with employees across geographies and regions.

Layoffs / financial austerity and restructuring are part of the tools many companies will use. Employees need the reassurance they are part of the go forward team. Employees need to hear the vision and what to expect going forward as the CEO shares the plan and more importantly on the EQ soft side, galvanizes the company around the company’s mission and creates cultural connectedness.

In these difficult times, employees look for positive points of reassurance. Recognize your employees who are high performing in these difficult times. Employees want to know they are appreciated, valued and that as they tighten their belts and lean in to do the really hard work of getting through this difficult cycle.

Find ways to celebrate and recognize incremental small achievements as well as big ones. Perhaps there is a new product feature being released, or a metric being achieved. Think about how you can more regularly celebrate the team’s achievement and recognize your top performers.

On the practical side, creating morale and esprit de corps is key. Having regular all-hands meetings as well as out in the field in person meetings is very impactful. Think of how you engaged with your team in the early days of Covid.

You may also consider, are there any inspirational motivational outside speakers that can be part of a rotation on all hand’s meetings. At Wynn Resorts WYNN -1.8% the company created deeply emotive and powerful internal videos celebrating the Wynn culture.

These videos were very effective, and they showed the wide range of diverse people and diverse roles and functions across the organization capturing the individuals authentic and genuine feelings creating a esprit de corps reinforcing what is special about your culture. Perhaps there are similar video artifacts you can create.

Employee engagement is key to getting through this tough cycle. Look at delegating some authority to managers and look at giving them a budget so they can give small recognition awards to their team members. Small things can range from hats, gift cards etc., but delegating the authority to the manager and giving them a budget is very effective.

Not everyone on the team has the skills, background and resilience to handle both the growth cycle and the current recession cycle. You may need to make the hard choices of who is not going to make it through the recession cycle. You need the team members who are motivated for the long term and fired up to go through this tough time.

You may want to ask management to review the employees with the lens of who are the right people for this cycle and to make the hard call of who will not make it early. Another important thing to ask your CEO and leadership team is to identify the top performers who really “move the needle”.

This would be a time to lock them in with differentiated equity and long-term incentives. Those that are your most important “life boat picks,” should be rewarded and retained in a differentiated way.

Customer Acquisition:

When looking at functional groups in the company in a recessionary cycle, one of the learnings that is often cited from other downturns is the importance of customer acquisition and retention. I think it is worth doing a very deep dive on some of the actual very small tactical things that the best sales leaders like Steve Benson have identified:

It is valuable to look at how you would forward plan the challenges your CRO CRO -3% and sales team will be facing in this bad economy, here are some examples from the software industry:

1. Great leaders face a crises and look reality in the eye. In times of great change you need to be action oriented and get an accurate picture of what challenges you think your company will face. Build a plan. Have a positive outlook, involve the team and be transparent about the action plan going forward. Identify your most successful reps and find out their customized playbook they are using. They have figured out how to crack the code. Make that rep the hero and teach those behaviors across the organization.

2. Sales leadership must be very close to every deal and be sure it is getting to the key decision makers. Sales leadership often will need to come in and assist to get the big deals closed.

3. Sales reps will need coaching in the down economy. There are new skills you need to help the team acquire. Assess if your sales leader is spending at least 50% of their time coaching the teams and doing in person joint calls.

4. Maniacally looking at the lead generation and qualified leads in all three sections of the funnel are key. (Understand if your deals are stalling at the middle of the funnel or at the end).

5. Buyers will negotiate tougher terms. Deals may get stuck and not close. It will be important to qualify if the buyer is actually authorized to go forward or if there is a companywide freeze. Deep focus on the sales operations and forecast KPIs so you are sure deals are really progressing to close.

6. Decide if you should change your commission plan. In this time of duress do you want to compensate on revenue, or do you want to compensate on margin? Historically in the software industry reps are paid on revenue. Do you want to consider paying them on profit / margin?

7. Look at upskilling your sales organization on negotiating and retrain the sales organization to sell the benefits of the solution. Plan ahead to defend your margins.

8. Your competitors may well become desperate and do significantly deeper discounting. Some companies will be under such duress they may liquidate inventory. Expect that there will be pressure to give away free consulting or other valuable products/services steal your customers.

In an ideal world you would hope to do one very deep layoff rather than multiple cuts. Given that this recession is new and uncharted for many companies you may be going through the pain of more than one cut. The board should consider the wisdom of encouraging management to do the tough planning to aim for one big cut and to try to avoid doing many frequent small cuts.

I hope reading this list has spurred you to your own tactical learnings and experiences. Think about applying this tactical lens to other functional areas and distilling down the most specific tactical decisions that can be made to move the company from its peacetime growth at all costs cycle to a wartime cash conversation profitability footing.

There is a lot of wisdom your friends, colleagues and board members who have been through cycles can share.

Think about allocating time in your next board meeting for a discussion about what learnings each board member has to contribute having lived through different recessionary cycles. You’ll energize your board by asking them to engage. You’ll be surprised by the vibrancy of the discussion as everyone collaborates to help iterate on which experiences and learnings are most appropriate for your company.

I am a 3-time CEO, serial entrepreneur & Founder of Baja Ventures. I cofounded Technology, CPG and Energy Companies. I am an operational executive leading companies

Source: Practical Tips On Customer Acquisition During A Recession

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Related contents:

“From Customer Management to Customer Engagement”. Forbes. Retrieved 29 December 2016.“Power Great Customer Experiences Across Digital Channels”. Retrieved 29 December 2016.

“Data Is The Fuel Of Customer Engagement”. Forbes. Retrieved 29 December 2016.Customer engagement interview with Richard Sedley by Dave Chaffey 29 April 2007, smartinsights.com,Smart Insights (Marketing Intelligence) Ltd.

Advertising Industry ‘Turned On’ by New Measurement Model Archived 2007-04-01 at the Wayback Machine The Advertising Research Foundation. 21 March 2006

“Marketers Mulling ARF’s ‘Engagement’ Definition”. ClickZ.com. 2010-07-14. Archived from the original on October 13, 2007.

Blueprint for Consumer-Centric Holistic Measurement World Federation of Advertisers wfanet.org Archived September 27, 2007, at the Wayback MachineVohra, Anupama; Bhardwaj, Neha (2016-01-01).

A Conceptual Presentation of Customer Engagement in the context of Social Media – An Emerging Market Perspective”. 4 (1).Fan, Xiaojun; Ning, Nanxi; Deng, Nianqi (2020-03-19).

The impact of the quality of intelligent experience on smart retail engagement”. Marketing Intelligence & Planning. 38 (7): 877–891. doi:10.1108/MIP-09-2019-0439. ISSN 0263-4503. S2CID 216507124.

“He got Facebook hooked on AI. Now he can’t fix its misinformation addiction”. Retrieved 2021-03-16.Guy, Craig the Computer (2021-02-18).

User Engagement” Is Code for “Addiction””. Medium. Retrieved 2021-03-16.Eisingerich, Andreas B.; Kretschmer, Tobias (March 2008). “In E-Commerce, More is More”. Harvard Business Review. 86: 20–21.Eisingerich, Andreas B.; Bell, Simon J. (October 2008).

Customer Education Increases Trust: Service Companies Shouldn’t Worry About Teaching Their Customers Too Much”. MIT Sloan Management Review. 50: 10–11.Bell, Simon J.; Eisingerich, Andreas B. (2007).

The Paradox of Customer Education: Customer Expertise and Loyalty in the Financial Services Industry”. European Journal of Marketing. 41: 466–486. doi:10.1108/03090560710737561.

Can Web 2.0 user engagement be measured? logs.zdnet.com CBS Interactive Archived November 14, 2006, at the Wayback MachineChris Anderson, (2006)

The Long Tail: Why the Future of Business Is Selling Less of More, Hyperion, eBook, 288pp, ISBN 9781401384630“ARF on Engagement”. Archived from the original on May 29, 2007.

Blueprint for Consumer-Centric Holistic Measurement.wfanet.org Archived September 27, 2007, at the Wayback MachineCan Web 2.0 user engagement be measured? blogs.zdnet.com

“Traditional TV advertising is losing efficacy: McKinsey, wfanet.org, August 2006”. Archived from the original on September 27, 2007.Social: GWI’s Flagship Report On The Latest Trends In Social Media. GWI. 2021. p. 27.marketingforecast.com Archived March 20, 2011, at the

“Advertisers are starting to find television a turn-off”. Archived from the original on September 27, 2007.2006 Annual Online CE Survey Cscape.com Archived March 2, 2007, at the Wayback MachineMark Ghuneim,

Terms of Engagement Measuring the Active Consumer Archived April 5, 2010, at the Wayback Machine, March 26, 2008, wiredset.com blogWebinar Notes: “Web 2.0 How to Measure Social Engagement: Blogs Podcasts and RIAs” by Jeremiah Owyang January 19, 2007,web-strategist.com, blog, Web Strategy LLC

New Media Frets Over ‘Engagement’ and Audience Measurement: Sounds A Lot Like Old Media Scott Karp, publishing2.com, October 25th, 2006See the ‘Blueprint for Consumer-Centric Holistic Measurement’ wfanet.org World Federation of Advertisers Archived September 27, 2007, at the Wayback Machine

Like Nailing Down A Shadow: The Problem with Social Media Measurement brianoberkirch.com. Blog January 19, 2007

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SqribbleEbook   https://jvz6.com/c/202927/283867
Stackable Picture   https://jvz1.com/c/202927/385046/
Steven Alvey’s   https://jvz2.com/c/202927/351754
Stock Mages   https://jvz2.com/c/202927/388669/
Stoodaio   https://jvz6.com/c/202927/388794/
Storymate    https://jvz3.com/c/202927/320972
StoryReel   https://jvz3.com/c/202927/387813/
StreamPilot   https://jvz2.com/c/202927/385431/
Studioninja   https://jvz1.com/c/202927/374965
Sunday Freebie  https://jvz1.com/c/202927/267113/
Super backdrop   https://jvz8.com/c/202927/376524
Survai    https://jvz8.com/c/202927/380933/
Syndranker    https://jvz3.com/c/202927/378143/
Talkingfaces   https://jvz3.com/c/202927/375550
The Internet Marketing   https://jvz2.com/c/202927/289944
Tonai Voice Content   https://jvz8.com/c/202927/383119/
Toon Video Maker    https://jvz2.com/c/202927/357201
TrafficForU   https://jvz3.com/c/202927/381950/
Trendio  https://jvz3.com/c/202927/381003/
TubePal   https://jvz6.com/c/202927/379863/
Tubeserp   https://jvz3.com/c/202927/370472
TubeTargeter  https://jvz6.com/c/202927/377211
TuneMingo    https://jvz3.com/c/202927/386556/
TV Boss Fire  https://jvz6.com/c/202927/379480/
Ultrafunnels A.I   https://jvz2.com/c/202927/381129/
VIADZ Ad Template  https://jvz4.com/c/202927/379307/
Vidcentric   https://jvz4.com/c/202927/376095
Viddeyo    https://jvz6.com/c/202927/382326/
ViddleInteract   https://jvz8.com/c/202927/388716/
Videevolve   https://jvz4.com/c/202927/381011/
Vidently   https://jvz1.com/c/202927/387798/
Video Campaignor      https://jvz4.com/c/202927/387058/
Video Games   https://jvz3.com/c/202927/184902/
VideoEnginePro     https://jvz2.com/c/202927/372916
VideoGameSuite    https://jvz3.com/c/202927/366537/
VideoRobot Enterprise   https://jvz8.com/c/202927/291061
VidKreate   https://jvz6.com/c/202927/386029/
VidMingo   https://jvz6.com/c/202927/378359/
VidRaffle   https://jvz2.com/c/202927/386840/
VidSnatcher    https://jvz3.com/c/202927/342585
VidVoicer    https://jvz1.com/c/202927/379983/
Vidzura   https://jvz4.com/c/202927/385754/
Viral dash   https://jvz6.com/c/202927/375959
Viral Quotes      https://jvz2.com/c/202927/386984/
VirtualReel   https://jvz8.com/c/202927/376849
Vocalic  https://jvz2.com/c/202927/383848/
VoiceBuddy    https://jvz1.com/c/202927/342854
Voiclet   https://jvz4.com/c/202927/388755/
VR Studio  https://jvz8.com/c/202927/388296/
WebCop  https://jvz4.com/c/202927/378683/
Webinarkit   https://jvz3.com/c/202927/383937/
Webprimo   https://jvz1.com/c/202927/379455/
WordPress Mastery   https://jvz1.com/c/202927/386249/
WowBackgraounds   https://jvz2.com/c/202927/381556/
WP GDPR    https://jvz8.com/c/202927/299907
WP Simulator    https://jvz3.com/c/202927/46987/
Writer Arc   https://jvz1.com/c/202927/386602/
writing job   https://jvz8.com/c/202927/213027
XBrain Forex   https://jvz3.com/c/202927/372305/
XFUNNELS   https://jvz2.com/c/202927/310335
Xinemax  https://jvz1.com/c/202927/381749/
YoDrive   https://jvz2.com/c/202927/384700/
YoSeller   https://jvz4.com/c/202927/387544/
Your 3DPal   https://jvz2.com/c/202927/381685/
YTSuite   https://jvzoo.com/c/202927/381179
Zappable   https://jvz3.com/c/202927/367328/

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