In my previous blog post we looked at how to diagnose a drop in sales. But what’s the solution? How do you fix a drop in sales?
Depending on what you’ve identified as the problem, you have three options to fix a drop in sales: repositioning, repackaging, or recreating your product or service. It’s not unthinkable to keep all three of these choices on the table for different periods of time or segments of your customer base.
Repositioning your product or service to fix a drop in sales
To reposition your product, accept that there will need to be some fluidity. New circumstances necessitate new solutions, and if there isn’t a need to totally revamp your product, focus on repositioning it. How can it serve a new purpose?
Try breaking the product down into more manageable or appealing chunks to fix a drop in sales. Instead of selling 100% of it, break off bite-sized 20% offerings to make sure customers are getting the parts they want most.
If you usually sell a 3 month long course, try offering individual modules. If you sell packages of software, single out the ones that customers will most value right now and offer those. Getting input from and supporting your salespeople with reselling is key to getting this right. Find out what part of your offering your customers value the most.
Repackage instead of discount for long-term success
If your instinct is to discount your services or products, first pause. Discounting may have a short term benefit, but how do you then ramp up to usual prices at a later date?
Instead, consider a value bundle. Even Microsoft found great value in packaging services. How can you repackage products to show new/additional value, while still dropping the price?
I work with a point-of-sale business that successfully employed this approach this year. Instead of selling units individually, they packaged the products into smaller groups of say 2 or 5, making it cheaper for companies to buy set amounts rather than charging per 1.
Not only did this make it attractive more to SMEs in particular, but they were able to lease the point-of-sale units monthly instead of annually. Whether or not this changed how much clients leased them, repackaging of this made it more appealing, and helped retain customers.
Recreate or innovate to offer something new
If the above options have been exhausted or don’t solve the problem you’ve identified, you might need to focus on recreating your offering. Now is the time for innovation — but how you identify what the product or service needs to be as opposed to what it was?
Your salespeople are the solution here. With a direct line to your customers, they can get the word directly from the horse’s mouth. Don’t guess what your customer’s needs are.
If you’re struggling to find answers to why sales have dropped, or can’t identify the right solution, it may be that the pandemic and retreating consumers is the problem. But before jumping to conclusions, be sure to consult your in-house experts: your sales team.