We have not yet got rid of the bad mood in the economy. We are staggering in place. The pervasive uncertainty is also affecting the buying behaviour of consumers who are buying high-ticket products - that is, products and services perceived as expensive. What used to be an acceptable waiting period for a purchase decision is now becoming an endless process. And it's affecting your business. As the owner of a technical, technology or manufacturing company with "expensive" products, how do you ensure growth and profitability even as demand declines and pressure for efficiency increases?
The answer is clear. The key is an effective business strategy. One that combines cost optimisation, better capacity management and maintaining long-term customer relationships.
Why complex high-ticket sales are more challenging
High- ticket products are under a lot of pressure in an uncertain economy. And if you're
selling them, you're guaranteed to have some pretty long sales cycles - 9 to 12 months or more. Potential customers are now considering their investments much more carefully. Existing customers are more conservative and do not want to spend extra on products or services.
It is in these times that a well-built business strategy is crucial to help you not only survive, but grow. If you have a tech, technology or manufacturing company, try making a few changes. You'll see that the results won't be long in coming.
What can you do? Here are 5 steps that can help you in your current situation.
1. Ditch the budget priorities
In times when the economy is stumbling and giving you not a shred of security, there is no room to waste resources. You need to focus on allocating your budget to activities that will really push you upwards. They'll help you grow.
And that doesn't just mean cutting costs, it means targeted investments in areas with the highest potential for return. Companies with long sales cycles are reducing costs by automating processes, streamlining marketing and focusing more on digital channels. At the same time, focus on profitable sectors where your customers are still buying. Blink at return on investment (ROI) and monitor the effectiveness of each step.
2. Use new technologies for better capacity management
There is nothing worse than an entrepreneur with a fear of technology. Learn how to
use it and you win. You can't ignore these innovations today if you want to have a good business strategy.
Whether it's customer relationship management (CRM) software, analytics tools, or process automation. In technical and manufacturing companies, it is important that the sales team not only understands the technical side of the product, but is also as productive as possible. And there are already tools for that. They track, for example, the use of time salespeople and help identify weak points in the long sales cycle. I've written about why your business is inefficient before.
3. Keep your existing customers
Your customer base is a gold mine. New clients are hard to come by in times of economic uncertainty. They won't dive into uncharted waters, especially when it comes to investing in high-ticket products.
Do you have a customer retention strategy? Do you keep them happy and shopped repeatedly? If so, you're one step away from cross-selling and upselling - selling additional or more expensive products and services. I recommend focusing on personalized service, top-quality customer service and nurturing relationships. Even ifyour customers aren't buying right now, you need to stay in their crosshairs to be their first choice when the economy improves.
4. Measure your progress. Regularly
But it's not just about finance. Look beyond the budget, look around the company and see how you're doing. For example, do you know how quickly your salespeople are closing deals? What proportion of customers are returning? What is the pipeline coverage and what is the cost of customer acquisition?
These are questions that you absolutely must know the answer to. Establish the basic metrics that you will measure and give you a clear result. Measuring effectiveness needs to be dynamic - what worked six months ago may not work today.
5. The market is changing? Adapt your strategy
Once you have measurable metrics in place, it's important to review your strategy regularly and adapt it to the current market situation. If the economy changes, so should your business strategy. Have new trends emerged? Have customers started to behave differently? Are there technological innovations on the market? Don't hesitate, you need to react to this. Your competitors won't wait for you to get off your ass. In the meantime, you'll be outgunned.
Maintain growth even in uncertain times
For engineering, technology and manufacturing companies that sell high- ticket products, a well-structured business strategy is essential. When the economy isn't doing well, it's an outright necessity. Otherwise, you can't stay in business. So optimize your budget, work on sales team efficiency, and nurture loyal customers. Technology and regular measurements of how you're doing should show you if you're already on the right track.
If you still can't make it, get in touch. We'll look into it together.