The market is pushing companies to hit incredibly high numbers, quarter after-quarter and month-after-month. To comply, firms turn up the pressure tactics and close last-minute deals in unnatural ways.
Ask any organisation what’s happening in the sales department on the last few days of the month and the entire last week of any fiscal quarter. You’ll probably get an uncomfortable laugh and a shake of the head.
SALES TEAMS ARE CLOSING DEALS,AT ALL COSTS
The market is pushing companies to hit incredibly high numbers, quarter-after quarter and month-after-month. To comply, firms turn up the pressure tactics and close last-minute deals in unnatural ways. Data shows that sales reps give better terms to customers who wait until the last minute – with both sides knowing they can rely on dropped prices and a sure closing, thanks to the end-of-the-month company push.
It is a vicious cycle. And companies know it. Yet they continue the practice, month-after-month and year-after-year, perhaps unaware of how much it’s really costing them.
InsideSales Labs, a division of our company, InsideSales.com, recently conducted research analysis on 9,8 million sales transactions from the anonymous data of 151 US companies over nine consecutive quarters (Q1 2014 through Q1 2016).
Collectively, these companies annually sold a combined $54 billion, averaging $360 million each.
We learned that at the end of the month reps often push deals that are not ready. Our data shows that sales people close three times as many deals at the end of the month as during the rest of the month — but lose 11 times as many (11,43 to be exact). Thus, while the end of the month shows an increase in a firm’s overall number of sales, the end-of-the-month push coincides with a 51% decrease in overall sales win rate. Reps are less effective at closing the right deals, with appropriate pricing, at the end of the month: Our study found that overall dealsize declined by 34,5%.
This story is from the November 2017 - January 2018 edition of thinksales.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 2017 - January 2018 edition of thinksales.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Getting Over Your Fear Of Cold Calling Customers
A recent research study found that 48% of business-to-business salespeople are afraid of making cold calls.
10 Tips To Get Honest, Productive Feedback
Great leaders are great learners. Their never-ending pursuit of information pushes them to constantly improve and sets them apart from the rest. Getting and learning from feedback isn’t always easy, but it is necessary, if we want to become better.
The 5 Things All Great Salespeople Do
The best salespeople know they’re the best. They take pride in their art form. They separate themselves from the rest of the pack regardless of circumstance. So how do they do it? What’s their secret? Are you one of them?
Why Trade Shows Are Worthy Of Your Marketing Budget
Given unrealistic expectations against a modest budget, marketing leaders are routinely tasked with making trade-offs on what stays and goes in their annual budget. In a highly digitised world, trade shows might seem like the ancient way to do things, but they remain one of the best forums for exposure to customers. Increase your success rate with trade shows through more thoughtful planning that aligns sales and marketing to common goals and objectives.
Why CRM Projects Fail And How To Make Them More Successful
CRM is an important tool, but it is just a tool. When the laptops are shut down for the day, it’s your sales team that is responsible for bringing value to clients and driving revenue. Implement your CRM with that in mind and you’ll be pleased with your ROI.
Is Your Corporate Strategy Paying Off?
Key questions to determine if your strategy is working.
3 Ways to Improve Your Ability to Diagnose
Selling requires a strong ability to diagnose the client’s problems and challenges.
How To Create Compelling Content
How do you create content that cuts through the noise? How do you get attention now that there is a glut of content being created?
Build Up Your Resilience By Asking Yourself Two Simple Questions
You may surprise yourself and find good in the bad.
How Marketing Can Increase Customer Lifetime Value
Marketing can play a pivotal role in boosting customer profitability.
