Falling sales is a symptom of a deeper problem, and unless small business owners can trace the root of the decline in sales, it would be difficult to remedy it.
Declining sales is a nightmare.
It leaves the business owner confused and frustrated.
And the reason is that sales are the lifeblood of any business.
Without it, the business cannot survive, and when it begins to decline – the business owner faces the stark reality that the business might close shop if immediate action is not taken to reverse the trend.
But the first step to reversing a sales decline is knowing what is causing your sales to fall.
In this article, we would share a few top reasons small business sales are trending downwards, and what you can do about it.
Four Reasons Small Business Sales Are Declining
There at least a dozen reasons the sales of a small business may be declining at any time. It depends on the economy, the season and the business itself.
We would focus on the reasons for sales decline that are caused by the business or within their control.
1. Little/No Unique Value
Customers are always comparing products and services in terms of the value they offer. If your product has little or no unique value, then they would have to reason to continue buying them.
A good way to reverse sales decline due to poor product offering is to research what your competitors are offering and what your customers value. And re-offer your product to customers, highlighting the extra value you’re offering.
Additionally, you could offer incentives to customers to increase the value of your offering. by offering free delivery, creating loyalty programs etc.
2. Ignoring Marketing/Consumer Trends
The marketing strategies that worked for your business a few years ago are probably outdated today.
The things that appeal to customers a few years ago may not work today.
The world is moving fast, and only businesses that are ready to try new strategies can succeed.
Many businesses are stuck in their old ways of marketing, and it is causing their sales to fall.
When you hear yourself saying “That is how we have always done it”, you know this may be one of the reasons for your sales decline.
The solution is that small business needs to be on alert to monitor changes in customer behaviour and marketing tactics.
They need to be ready to reposition their offering to reflect the changing times.
A good example is coca-cola. They are constantly introducing new products and packaging to meet the needs of today’s consumer. They introduced the zero-sugar coke and offered coke in cans.
This cannot be emphasized enough, your consumers are learning new habits, and the only way to ensure that your product or service gains continuous patronage is by adapting to their new realities.
3. Poor Staff Training
No matter how great your sales strategy is, it would not bring any results if you don’t have the right people to execute them.
The first step is to ensure that you hire the best employees but to sustain their value, you have to train them.
Employees, especially salespeople with poor training, maybe another reason behind your declining sales. Because they are poorly trained, they are unable to convert a good percentage of your leads, they don’t prioritize prospect follow-ups and use outdated sales strategies.
The cure is to train them. Coach them on the new ways they can sell, and other strategies they can use to convert more of their leads.
4. Poor Relationship Between Sales & Marketing
For your sales to improve, there has to be a good relationship between your sales and marketing departments.
Unfortunately, this is not so for most small businesses; there is poor communication between the two departments that should work together.
The solution? The business owner should make sure they are working together by: –
a. Sharing a common goal and communicating
b. Holding meetings together
c. Fostering events where both sales and marketing teams can interact even outside the workplace.
d. Emphasizing the impact of their collaboration on the business, etc.
Success at reversing a decline in sales depends on detecting the root cause of the decline.
Hopefully, the four reasons we’ve shared in this article will help you move your sales upward in no time.
If you would like more guidance on how to handle the daily challenges that come with being a business owner, getting an experienced coach is the best decision to take.
Contact us today to get assigned an SME Coach that would help grow your business.