One of the challenges electronics manufacturing services companies has is the length of the sales cycle. New accounts being called on today are likely a year away from closing. And after a long recession with less-than-stellar sales results, attempting to justify increased budget for sales and marketing efforts may seem a highly risky endeavor. But these are times when those of us who have watched EMS cycles (which I’ve been doing since 1981 when I joined SCI Systems) recognize there can be dramatic shifts on the playing field. Companies that position their value propositions and sales team efforts to capitalize on these shifts will outperform those that continue on a conservative tack.
While there will be variation by industry, OEMs demonstrate typical behavior patterns when the economy begins to shift from recession to recovery. Anecdotally, I’m seeing all these behaviors occur in the OEM accounts I have contacts in, so this economic cycle seems to be following predictable patterns. Here are key dynamics to consider in developing a robust sales strategy:
What EMS Companies Should Do Now
From a marketing perspective, this is the time to be turning up promotion efforts to make sure your company is visible to OEMs that may be starting to shop. From a sales perspective, this is the time to really analyze the existing sales funnel. While it is nice to profile market segments and develop strategic plans that plot how you want to divide the business base, right now the best return on planning time investment is likely to come from a short-term tactical focus.
First, if you haven’t already, map the decision teams in your key accounts. Have any people changed? If so, where did they go and do they represent an entry point in a new account? Are new people present in the existing account? Do you have a strong relationship with the new team members, or are you just depending on the old team to educate them? Is the team fully aware of your company’s current value propositions? Are you aware of what keeps them up at night? Have their needs changed in the last year, and have you offered solutions to address that? Your tactical account plans should answer those questions.
Second, use social networking tools like LinkedIn. One of the positive aspects of a bad economy is that people are posting a lot of information on social networking sites to facilitate their job searches. That same information can be a great networking roadmap for sales teams smart enough to tap it. This is a great tool for finding decision team members who leave a company, and for learning more about the new team members. When appropriate, adding prospects as network contacts is one more way to remind them you are out there.
Third, focus on results vs. activity. In a recession, it is easy to get in the habit of seeing sales calls as a measure of productivity because things simply aren’t moving quickly. In this market, it is more important to focus efforts on accounts with higher win probabilities that are a good long-term business fit. Are accounts being pursued truly good prospects or simply those still willing to schedule sales calls? Do they fit your company’s profile of ideal business? Is there forward momentum in these accounts? Given the length of the EMS sales cycle, the best measure of productivity is migration between specific phases in the account acquisition cycle, not the number of sales calls or prospects.
Finally, celebrate your successes. It has been a tough market for the last year with a lot of belt tightening, fear of job loss and general stress. These are the times that test even the best-performing salespeople. Find ways to celebrate sales success both individually and as a team.
Positive momentum has a way of gaining steam. It is important to note that many EMS companies are hiring salespeople and actually may prefer to hire someone currently working vs. someone currently unemployed. Failure to treat your top performers well may motivate them to move to a competitor.
Susan Mucha is president of Powell-Mucha Consulting Inc.; (smucha@powell-muchaconsulting.com). Her book, Find It. Book It. Grow It. A Robust Process for Account Acquisition in Electronics Manufacturing Services, is available through barnesandnoble.com, amazon.com, IPC and SMTA.