SALES FACTS IN A RECESSION

 

My friend John Nelson from the Alternative Board provided some of these facts from a seminar he attended at IDC Research.  As we know, it is so much easier to use the internet to make buying smarter and easier.  Consumers are making more informed decisions, before they spend their money.

Recession Fact #1

Sales people need 20% more prospects to stay even.  No one can rest on their laurals, or think that a sale is coming in.  Do not assume.  Get as many prospects in that pipeline as possible.

Recession Fact #2

Companies that significantly reduce Sales & Marketing in 2009 will be gone in 2010.  This is a strong statement, but justified.  I would like to add that Sales will not cure all ills.  Cash Management, personel, and making sure you are touching base with all aspects key to your business is a must.  Do not accept mediocrity from yourself or your people.   

Recession Fact #3

Why do we lose sales? 22% of deals are lost to “no sale.” Don’t chase garbage, select better targets. Use a score card to identify good customers.  This is so true.  I do not know how many business owners I asked, who their target customer was, and they had no real idea how to identify.  The statement that everybody is my potential customer is just not true.  Benchmark which customers generate the most and are easiest to have and target new ones just like them. 

Recession Fact #4

Lack of insight into sales activity and the target markets loses 10% of all sales. Not having a full understanding of a standard processes, information, and interfaces, forced salespeople to lose sales.  The average business loses 10-20% of the business they had the previous year due to financial reasons, poor service, or unforseen competitive advantages.  Do you keep track?  What actions do you take to correct this issue? 

Recession Fact #5

It takes 20-30% longer to close a sale.  People just are afraid to buy.  It is actually quite strange, because it is the best time to buy. There is less business so better service, interest rates are low.  Why keep your money in a bank? 

 

In conclusion, comments are always appreciated and please do not hesitate to contact me directly. 

Comments

[Maitri Meyer]

Do you have the sources of these stats? I'd like to use some of them and want to source them correctly. Thanks, Maitri

[Allan Himmelstein]

All I have is the company IDC Research as mentioned in the first line of the blog. This was given to me by a friend that attended a seminar in Denver. Thanks for your comment.