Loading the Sales Pipeline in a Down Economy

In a down economy, many salespeople are losing sleep and seeing their hair turn gray at the prospect of not being able to hit their quotas as easily as they used to. It would be great if there was a “silver bullet” solution that would enable salespeople to maintain their traditional closing rates. However, this era of new-spending freezes and long-term clients failing to renew means that even the most seasoned salespeople are going to see their conversion rate fall.

Smart salespeople will quickly realize that this is a reality that must be faced and dealt with (I was speaking with a company a few days ago that has seen $500k in signed deals disappear because the prospective clients had no money; I am sure more than a few of us have experienced this). Thus, if falling conversion rates are a depressing but real fact for at least the next 12 months (and possibly beyond), what can salespeople do to continue to hit their quotas? The simplest and most obvious approach is for all of us to go back to the drawing board, roll up our sleeves, and return to the hated business of prospecting. For example:

If I need to close 5 deals to hit my quarterly quota, and I have a 20% conversion rate in a favorable environment (from initial meeting to close), I know I need to get in front of 25 new prospects per quarter. If on the other hand, I have a 10% conversion rate in an unfavorable environment, I now need to get in front of 50 prospects to still hit my quota. Sounds simple enough right?

Every one of us can do this math. However, I speak with many salespeople who are still unwilling to increase the amount of time they spend prospecting new accounts. Why is this? I believe the answer lies in our not being armed with the right tools and skill sets to take prospecting from a tedious task to a stimulating and occasionally enjoyable pursuit.

My hope for this blog is that it will become a forum for salespeople to engage with each other, share best practices, and be best positioned to weather the current storm and emerge in the best position possible when conditions become more favorable.

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