2016 market improvements
Oil is a cyclical business and just as oil prices are now low, there are reports of market improvements.
Optimism (armed with the right information) is good for your marketing and sales efforts.
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While reports are improving E&P budgets are still low
Oil prices are still low. Most o&g companies reported negative pre-tax margins in 2015. Commodity hedging helped a great deal for some (making margins less negative), but operating cash was also down for almost all o&g companies and their operating budgets for 2016 are also down. This means that service companies will have to clearly demonstrate value to their customers by reducing their customer’s operating cash and providing quick and high rates of return on their customer’s investments in services. This may be easier for many service companies which have cut expenses during the downturn. For example some drilling companies have increased efficiency with faster drilling rates, lower costs and they are delivering more O&G production when completed. Are your company operations more efficient and market competitive?
A realistic outlook is healthy. Competitive sales people are a necessity.
Understanding your value – Creating and aligning your on-point message
Part of efficient marketing and sales comes from knowing your company, product strengths, and the value provided to your customers. Some service companies know and others do not. Companies that do understand know who to target and what to say to drive their engagement. Sales staffs at companies that do not understand, make too any calls and like a catalog offer as many products and services as they can to see what sticks. This is confusing, creating bad impressions with the customer and wastes valuable sales time. Case studies can be a good way to understand your values, the segments you serve and help you create on-point messages and other content that drives client engagement.
First delineate your strengths and value to your customers. Then create your on-point message.
Creating a targeted program and optimizing your campaigns and results
It’s not enough to cut expenses during this downturn. You also have to build revenue and that comes from a strategic program. Put your message where it belongs, in front of your customers with tactical campaigns. Develop a series of activities that will do just that, sales activities, your company webpages, collateral, advertising, social media, etc., remembering that some activities are more efficient than others. Don’t forget to monitor your activities and their results to optimize lead generation effectiveness and revenue.
The downturn is hard but plan for success and you will be better off now and when ‘things turn around’.