While about 60% of today's companies consider lead generation their biggest challenge, it's closing sales that determines your B2B company's success.
But closing sales is easier said than done. So if your sellers aren’t getting the results you want, investigate. You need to know why sales are down. Is it because things are slow or because there's something fundamentally wrong?
Whatever the case, don't panic. You can turn your B2B marketing campaign around with the right tools if you know why you're not closing sales.
Below are several tips that can help you understand why sales are off.
What determines whether you close a sale or not are four core components. First, is the quality of the salesperson. Second, is the sales nurturing process. Third, is the client's budget constraints. And fourth is price.
Problems in any one of these areas cut sales.You can also have problems in more than one of these areas. It’s important you look at each of these components in detail before deciding what changes you need to make to your B2B sales campaign.
- Quality of the sales person
Sales depend heavily on the sales person. So if sales have dropped, dig into your sales people's stats. Your B2B sales campaign can easily look worse than it is if one or two people aren't pulling their weight. The team might have a slacker or two dragging everyone down.
Review each person's stats and see who has fallen behind. Compare these figures to sales from the previous months and take some seasonal variations into account.
If you’re sure someone’s falling behind, then have an open and honest discussion with them. Talk to them about how they can improve their B2B sales numbers.
- Sales nurturing process
You may discover that you're losing sales because you’ve made changes to your funnel. The sales funnel regularly needs refreshing so you can continue to push leads through it.
But not all changes work. So if you’ve recently made changes to your sales nurturing process, review them. They may be affecting the sales funnel process adversely.
Find out where people are dropping out of the process and think about why people are doing it. Make some changes to the offending part of the funnel and review it again in a few weeks.
- Client budgets constraints
Another reason why prospects are no longer buying is they don’t have the budget to buy. Or, they need approval from too many decision makers about the purchase.
You might think that you can’t do anything about budget constraints like these, but you can. The problem indicates a failure to attract the right leads.
So make sure the leads you generate have the budget to accommodate your products or services. Changing your data gathering efforts should make your B2B negotiations easier.
- Price of your product or service
It’s rare to see B2B sales dropping off because of pricing. Usually, a drop off happens when a new product innovation appears or when a competitor drops their prices without warning.
Having a firm knowledge of your industry price points comes in handy. You should know exactly what everyone else in your industry is doing price-wise. Then price your offerings accordingly.
So Should You Panic?
Sales drop off for many reasons. Sometimes it's something fundamental. Sometimes it's not. How you react to the drop off is critical.
First, don't panic. Panicking doesn't help. Plus, it often leads to poor decisions. Instead, look at each of the four areas described above, then implement changes based on that review.
If nothing happens, you could have a flaw in either your product or your target market. It’s up to you to find out which applies to your situation.
But one thing's certain. If sales are dropping off, you need to turn things around quickly. Entrepreneurs have ruined themselves by persisting with business strategies that don't work.
To survive long term in today's hotly contested environments, you need to determine when to improve your offering and when you need to put an end to it. And you need to do it as soon as possible.
How are you going to make sure that your sales figures stay high over the next twelve months?