Four Things Sales and Revenue Leaders Can Do to Prepare for Recession

According to the International Monetary Fund, the global economy is forecast to slow by nearly 3 percentage points this year , from 6.1 to 3.2 then decrease by 2023. Inflation rates are expected to continue to be at a high level.

There are many actions you can take to make sure your teams are prepared for changes in your prospects' and customers' buying habits and preferences.

I talked to's previous Director of Revenue Operations about this, and you can watch our entire conversation at the in the bottom of this post. I've also elaborated on certain strategies we have discussed.

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

There's a good chance you're looking at other data sources to see whether your total addressable markets (TAM) is shrinking. In the case of your particular market it is possible to find public reports or market surveys on expected changes in budgets and technology spending, for example.

However, in markets that are volatile the information could become obsolete as soon as they are made public.

Another way to find more current information is to read industry thought-leader interviews as well as blogs. What are CEOs of industry and advisors saying on LinkedIn about their businesses?

For internal information, on a high degree, you need to be consistently monitoring your net retention rate or bookings as well as your average deal size. However, where many businesses go wrong is staying at too an elevated level with regard to their markets.

Not all segments of your TAM are going to be affected by external factors exactly the same way. For instance, we know that certain industries are more resistant to recessions than other ones. And if you haven't already discovered these sectors within your ICP then that's an excellent place to start.

It is also possible to identify specific locations or nations that are where you operate which are not as affected by inflationary pressures or economic slowdown.

Account-based sales companies are accustomed to delineating sales regions. If you're a more location-agnostic business, then you're likely to spend less effort on marketing and sales efforts based on where your customers or potential customers are from. But in a tighter market and with more competitive markets, knowing the best regions to target can be a huge advantage.

Of course, in particularly volatile markets, the health of certain industries or regions may change dramatically. This is why it's so vital to determine the return on any investment you're making in the quickest time possible.

2. Accelerate Your ROI Measurements

You don't always have time to adjust for unexpected developments in your market, but the most important thing is speeding your ability to evaluate the effect on the investment you're making right now.

• If you're used to calculating the ROI of new product investment after six months, increase that number into six-weeks. What indicators do you have to employ to assess faster?
• If you are able to beta test the new product for six months before releasing them to your entire customers, consider whether you can make an MVP to production in just three.

Consider how you can test every financial or time investment you're making -- so you can make mistakes or be successful more quickly and adjust as necessary in a faster manner.

Another benefit is that you can provide value to your customers at the speed that is feasible. If your customers are tightening their budgets, you want to demonstrate that you can continue to add new value.

3. Develop Your Sales Team's Skills to handle the new Prospect Priorities

The value propositions that are successful particularly well during growth times may not be as effective during periods of low or zero growth. Do your sales teams know what to do to adapt?

For instance, buyers that have traditionally been the most focused about how a product helps the company grow revenue might now be more focused on how it will help save staff time and other company assets.

We'll generally see increasingly more discussions centered about cost and the amount companies will shell out if they go with one solution over another. They might be looking for measurable ROI as opposed to potential growth possibilities.

What we're notencouraging you to reduce the price of your product, which causes your clients to become accustomed to losing value for your product.

Instead, sales needs to be more rigorous than ever before in their ROI calculation, and educate customers on how to justify the expense of your product and practical, tested ways in which can benefit the company.

4. Discover new ways to add or enhance value

Inflation rates are soaring around the globe with no signs of slowing down. Along with slower expansion trajectories, you'll likely be facing increasing internal costs.

It is possible that you're in a position that you have to increase the price of your products or discover methods to generate more revenue from your existing customers.

Whatever strategy you're using, the key is to tie it back to the value.

Give more information about the value you've added to the Product

If you choose to raise your prices, be sure to make sure to tie the numbers back to the extent to which the product you offer has progressed.

• If possible, tailor messages with added value for particular users.
• Make content for platform upgrades or new features. which customers may have missed.

Offer Training and Case Studies Concerning Add-Ons or Features that have not been used.

If pricing increases aren't an ideal option, then look at other options to boost the revenue of your current customers.

Based on the data we collect internally Based on our data, upsells, or add-ons, usually represent between 30% and half of customers' company. They are a way you'll be able to justify your costs and still maintain the average deal size that you're trying to capture withoutraising your prices overall.

• Have you identified customers who would benefit from the next tier or another plan?
• If you're planning an appointment to renew How do you present them equipped with evidence that your customers don't fully benefit from the services offered by your business?

In the end, focus on value and be prepared to be flexible

There is a bright side: periods of steady growth are often followed by recessions. The only thing you need to prepare yourself for them.

The companies that are the most ready for market shifts are those with the best value positioning. They've invested in their product and on their relationships with customers. And they're able to prove their worth.