Here is a call for help from a VP of Sales of a technology company who emailed me for advice today. Sales were going well, but something happened. Please read the email, and tell me what you would do if you were in this situation: I enjoy your new blog and in general your magazine and articles over the years.
One very broad question I have for you related to metrics. If you were to guess the impact in close ratios at the bottom of the sales funnel due to this current economic situation, what impact would you say it has had?
Obviously there are a million variables related to price, industry, product, etc. but I would assume most everyone contends that the ‘ROI threshold’ for approval for a project involving an incremental investment is higher today. In my own company, our close ratio on qualified opportunities had been going along between 21 – 29% (based on seasonality) for several quarters and dropped precipitously to 12% in the last quarter.
Anecdotally, this makes sense as companies tighten their belts but I am curious if you have broad data based on surveys or your own observations.
Thanks in advance, (end of email)
Here are my key questions:
Have you experienced a similar situation in your career?
If you have, what did you do about it? How did you recover?
How would you go about diagnosing this problem?
Which segments of the sales pipeline would you look at more closely?
How would you get the closing ratio back to previous levels?
Your reply will make a difference. Thank you
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