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By John Graham

If uncertainty is the one word that best describes the 2002 business environment, then it looks as if we can expect a repeat performance in 2003. We can look forward to a continuation of erratic customer behavior, higher customer expectations, escalating demands on our time and capabilities and rapidly changing purchasing patterns. It’s everything that put us to the test in 2002, only more so.

When asked to describe current customer attitudes, a group of commercial printers reported, “They want everything instantly.” The same message is heard in every industry and line of business.

This is the demanding environment in which we will find ourselves operating in 2003. Under such strenuous circumstances, what’s the success strategy?

Perhaps the best answers are to be found in what we don’t do—in what we avoid—rather than in what we choose to do.

Here are some things not to do.

Don’t hope for the best. Seeing the cup as half full instead of half empty is the mantra of business. Without optimism, where would we be? This is true. Pessimism is often paralyzing, as we know so well. No one wants to be around naysayers.

But this is only part of the story. According to psychologist Julie K. Norem, Ph.D., of Wellesley College, pessimism isn’t all bad. In fact, she maintains that defensive pessimism can be a strategic tool if you use it correctly.

While optimists insist they’ll win the order because of their strong relationship with customers, the strategic pessimist keeps asking questions: Have we covered all the bases? Have we uncovered all relevant customer concerns? Does too much self-assurance blind? What are we missing?

How does the fine art of doubt help? Don’t assume that you’re going to get the sale. Keep asking yourself what could go wrong. Look for the weak points. In other words, be prepared to dig for every deal. Nothing is a shoo-in.

Don’t wait for the economy to lift you. That’s the old way. That’s what everyone did 20 years ago. If we just wait it out, the economy will pick up and so will sales. We’ll get our fair share. That day has passed. Today, if you wait for the tide to float your boat, you may find yourself high and dry.

Many people who were working in the World Trade Center the morning of Sept. 11 were saved because they dropped everything and ran for the stairs as soon as the plane hit the first tower. Those who waited or went back did not fare nearly as well.

Operating in a changing and uncertain economic environment is no different. Waiting can be costly while taking action is essential.

In periods of economic uncertainty, we should pick up the pace, not slow down.

Don’t get distracted by rumors. Slow times breed rumors, lots of them. “Rumoring” serves a purpose: It’s a way of putting aside our problems for a little while. It’s like going to the movies to forget about our troubles. Unfortunately, dwelling on rumors has a debilitating effect on our job performance. It takes up valuable time, drains our mental energy and keeps us from putting full effort into the tasks at hand.

Don’t hunker down. Many business owners and managers cover their heads and wait for the storm to blow over, hoping they will get lucky. Maybe they will, but chances are, they won’t.

In periods of economic uncertainty, we should pick up the pace, not slow down. Do more, not less, particularly when it comes to marketing. Companies as different as IBM and Gillette have a track record for raising their investment in marketing in slow economic periods. Whether it’s B2B or B2C, the issue’s the same.

Don’t ignore prospecting. In fact you should be aggressive in carefully identifying those customers whom you can best serve. Salespeople are often advised to try to sell more to existing customers in slow periods. While increasing sales to present customers should always be an objective, trying to do it in a slow economy doesn’t make sense. Such a strategy suggests that the company hasn’t been doing a good job of prospecting.

The way to overcome slow sales is to have an active prospecting program. Build a prospect file of those who fit the profile of your most desirable (profitable) customers. Be in front of prospects regularly, demonstrating that you understand their needs, are willing to cultivate them and take follow-through seriously.

Prospecting is an opportunity to show the customer what they can expect after the sale.

Defensive pessimism can be a strategic tool if used correctly.

Don’t go into hiding. Bold gets attention. Stand out from the crowd. Be alert for ways to gain visibility. Get your name in the news as often as possible. It’s easier than you might think. It doesn’t take big stories to make news—just some imagination. Has your company won an award? Has anyone attended a seminar, convention or training meeting? All these are possibilities for press releases. Dictronics, Inc., the Needham, Mass.-based business equipment and telecommunications dealer sent a press release to the weekly Foxboro, Mass., Reporter, Joe Brown’s hometown newspaper. It announced that Joe had been recognized by Dictronics for his 25 years as service manager. It turned out someone saw the story and called to say that he was looking for one of the products marketed by Dictronics.

Don’t run from risk. Now is the time for daring, even for taking appropriate chances. Just when most printers were avoiding spending money on presses because business was slow, one commercial printer purchased the largest press in the company’s 20-year history. Was the owner taking a chance? No question about it. Yet, once the new equipment was installed, the printer started producing more work. Overtime also increased, much to the pleasure of the employees. The same printer also invested heavily in a computerized estimating system to meet the growing demand.

Don’t get miserly. Companies look at expenses even more closely in tighter times. Getting rid of unnecessary costs makes good business sense, of course. At the same time, making the wrong cuts can do irreparable harm.

Staying in even closer touch with customers, actively cultivating prospects and reaching out to new markets can make good business sense, particularly when competitors are backing off and keeping a low profile.

This is Dell Computer’s strategy. While other PC makers have backed off, Dell added large storage products to its expanding line, along with corporate services, and the possibility of retail locations.

In a sluggish and unpredictable economy, some companies behave as if the end of the world is around the corner. In reality, purchasing decisions continue to be made. Instead of climbing, sales remain just about flat. This means there is still enormous opportunity. And those who are out in front and who look strong will get the business.

John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. You may reach him at 617-328-0069; fax 617-471-1504; or at jgraham@ grahamcomm.com. The company’s website is www.grahamcomm.com.

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