A market downturn naturally seems like a tough time to grow revenue – potentially an impossible time to do so. But, that way of thinking is not necessarily the truth, nor is it a mindset conducive to business growth.
A B2B company can maintain its market share and position in the industry, even during a downward trend, if it focuses on activities that aim to increase revenue. You can diversify into other markets or industries, providing further revenue streams and even more resilience during future downturns. Advantages like these can give your company an edge over its competitors and make it well-positioned to thrive in any economic climate.
Here are four tactics you can leverage during a downturn to grow your revenue:
1. Revisit how your team operates
Focusing on how your team operates and making it as agile and lean as possible is essential to increase revenue when the market trends down. You need a flexible, adaptable and efficient team that reacts swiftly to change and completes projects without increasing the budget. In fact, you should look for areas where you can cut and optimise costs to get more done with less.
Reducing the number of people in your team and letting some people go may be a necessary task, but you should not do it without first ensuring that you have already optimised your processes and they are achievable with fewer people.
You should also focus on your team’s skills and ensure they possess the right knowledge, abilities and experience to deliver the business needs in a changing market environment. By focusing on creating a lean and agile team that can act when required, you will be better prepared to navigate through challenging times.
2. Focus on the customers you already have
I recommend looking to your current customer base as an opportunity to increase revenue when the market trends down. The reasons for this include:
Retention: Satisfied customers are likelier to continue doing business with a company, even during economic challenges. Improving the customer experience can help increase loyalty and reduce churn. By providing excellent customer service, creating personalised experiences, and offering additional value-added services, your business increases the chances of retaining its current customer base.
Cost-effectiveness: It is often more cost-effective to retain existing customers than to acquire new ones. By improving the experience for existing customers, your business can drive revenue growth, lower acquisition costs and maximise revenue from current customers, leading to greater overall profitability and stability.
Upsell and cross-sell opportunities: Focusing on your current customer base can reveal upselling and cross-selling opportunities, leading to additional revenue from existing customers. Focusing on retaining and upselling existing customers can also increase customer loyalty and advocacy.
3. Re-evaluate your marketing spend
In times of economic downturn, you might feel tempted to reduce your marketing spending to save costs. However, there are convincing arguments for why increasing the marketing budget helps your businesses survive and thrive during a recession.
One reason is that cutting marketing when demand is low could inadvertently cause an even bigger decrease in revenue. On the other hand, continuing to invest in marketing activities can nurture brand loyalty and build customer relationships that may help your business withstand economic uncertainty.
Your marketing efforts could place the business in a better position once the market recovers by bringing new opportunities as competitors reduce spending and withdraw from certain channels or platforms. By continuing to invest in marketing, your business can seize the market share left open and potentially benefit from expanding the customer base.
4. Look for opportunities to enhance sales performance
When the market trends downward, it can be easy to feel discouraged and think that sales performance will suffer. But instead of viewing this dip in the market as a negative sign, savvy business leaders should look for ways to use this moment as an opportunity to enhance sales performance.
Business leaders should leverage data to discover where there may be growth opportunities. For example, a closer look at customer buying behaviour and preferences will help identify areas where the sales team could take advantage of opportunities.
Take a close look at your competitors and where they may be succeeding. Analysing competitor pricing, messaging and customer service interactions can help you understand the strategies that work for your competition and how your team can apply them to the business to improve sales performance.
By taking a proactive approach to enhancing sales performance even when the market is trending downward, you can capitalise on growth opportunities and create a more prosperous future for the organisation. It is important to remember that even in moments of uncertainty, there are ways to improve sales performance and find success.
As a business leader, focusing on increasing revenue when market trends are down is vital. Taking proactive steps to maximise profits can prevent financial losses and help your business stay competitive in the long run.
When market trends are unfavourable, it is important to analyse the current state of your business, assess any potential risks, and find ways to increase revenue. Start by looking at your team, consider the opportunities in your customer base, attempt to maintain marketing spend and enhance sales performance. With these tactics, you can increase your chances of growing revenue even when it seems too difficult.
Resonate can guide your strategy during a downturn
We help B2B business leaders define or refine their strategies. We advise leaders on how to fortify the business during a downturn. We also provide strategic advice and consulting on various facets of strategy; business strategy, corporate strategy, product/service strategy, functional strategy, go-to-market, competitive strategy, pricing strategy, etc.
If you are looking to boost your revenue and prepare your business for the impacts of a downturn, let’s connect, let’s talk. We have extensive experience in guiding business leaders on these strategies. Visit our Strategy page for more information.