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Selling Strategies for a Tough Economy, Part 3

Tactical Adjustments For Tough Economic Conditions, Part 2

(This article originally published in the Global Services Oct 2008 issue www.globalservices.com)

Intensify focus on existing accounts.   Even in healthy economies IT decision makers generally find their existing solution providers less risky than unknown vendors.   Two proven approaches to increasing outsourcing sales in existing accounts are portfolio expansion – selling solutions that are already in your portfolio but not yet being utilized by the target, and incorporating partner-delivered solutions for even broader capabilities.  The latter can also be a worthy defensive strategy to keep competitors from gaining access.  In either case, the sales cycle will be shorter and less costly than trying to win a new client and the revenue ramp up should also be faster.  An excellent example of this strategy is highlighted in Cognizant’s 2007 annual report (Management’s Discussion and Analysis) where they identify account expansion as a key driver to revenue growth in 2007:

“Expansion of our service offerings enabled us to cross-sell new services to our customers and meet the rapidly growing demand for complex large-scale outsourcing solutions.”

 

“Increased penetration at existing customers, including strategic customers. Specifically, 96.2% of our 2007 revenues were derived from customers who had been using our services at the end of 2006.”

 

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