SELLERS ARE LOSING 4 OUT OF 5 DEALS THEY PURSUE BECAUSE THEY ARE NOT FOCUSED ON THE RIGHT BUYERS
There is a considerable opportunity for salespeople to make their interactions with buyers more productive.
Value converts to sales, but sellers aren’t delivering.
A study by the RAIN Group indicates that buyers believe 58% of their sales meetings are not valuable.
Another study by Altify indicated that 62% of initial meetings do not progress.
Furthermore the direct cost incurred by the average salesperson in conducting meetings with buyers is $38,635 per year for meetings that never progress to a follow-up meeting. For buyers this number is $11,816. Extrapolating this finding suggests that the total cost to the US economy of these once off meetings is $591Bn. On a global basis this translates to a cost of not doing business of $1.4Tn.
In many cases it’s the sellers fault because they are focusing on the wrong buyers - and too little attention is given by the sales organizations to the sales opportunities that they pursue but do not win.
The Altify study highlights that on average, the annual cost to a company of lost deal pursuit for a salesperson who sells $1,000,000 is $218,000. For a $2Bn company with a sales team of 200 enterprise sellers of this profile, this cost mounts up very quickly and costs the company $43.6m per year.
The Rain Group study found that when buyers find salespeople valuable, they get more initial meetings and convert more of these meetings into sales wins.
There’s a lot that salespeople can do to deliver more value and reduce the non-productive interactions with buyers to save costs and sell more.
Customer support service by UserEcho