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CMO/Marketing Strategy • Demand Generation • Marketing Operations
Up to 60% of deals in sales pipelines are currently not being lost to the competition, but are being lost to the status quo – the do nothing buyer. This malaise is costing millions in lost sales, and represents the single greatest opportunity for driving your 2012 sales and marketing success.
As we have been reporting for some time, the Great Recession has led to a fundamental and permanent change in B2B buyers, who are more overloaded, skeptical and frugal than ever before – Frugalnomics is in full effect. As a result, many buyers are forced to do-more-with-less, and are more risk adverse. These buyers are more apt to stick with their current state than change, even though they know their legacy solutions are not ideal.
If they are like the majority, your buyers are unduly assigning extreme cost and risk to any proposed changes, so your prospect needs to be convinced as to the overwhelming, quantifiable reasons to consider new solutions, or they will simply do nothing. As a result, up to 60% of your sales pipeline is currently frozen in place, content on sticking with the status quo rather than change.
What is the Do Nothing buyer currently costing your organization? The numbers may surprise you.
Consider a typical $500M revenue software company. The estimated pipeline for this firm is typically 1.3x annual sales, or $650M. With 60% of the pipeline stalled at status quo, some $390M of sales are stalled in status quo. Breaking the status quo represents the potential to boost sales 78%, the single greatest opportunity to drive incremental sales.
What if you could convince your buyer as to:
- “Why Change?”, proving that there is a substantial cost-of-doing-nothing,
- “Why Now?”, that your proposal represents significant incremental value, especially compared to all other proposed projects.
Implementing provocative sales and marketing tools, to answer “Why Change?” and “Why Now?”, has been proven to break the status quo. Using these tools to help you advance just a small percentage of these stalled deals from Do Nothing to Yes could reap you millions in additional sales revenue.
Currently, most sales and marketing efforts have focused more of the messaging, tools and training to win the competitive bake-off phase of the buying decision. Shifting just a small percentage of the investments to the earlier part of the buyer’s journey, answering the “Why Change?” and “Why Now?” questions for the buyer via provocative sales and marketing tools, represents your greatest opportunity for success.
For a $500M software company, making such provocative sales and marketing tool investments can help address a substantial part of the stalled deals. Drive just five percent of the deals from Do Nothing to Yes can yield almost $20M in incremental sales revenue, while advancing 1 in 10, could yield $40M in incremental sales.
Some key numbers you should determine today, to size what addressing the status quo could mean for you:
VN:R_U [1.9.7_1111]Up to 60% of Deals are Lost to the Status Quo,
- What percentage of your current deals are currently lost to the status quo?
- What is the sales revenue impact of the status quo?
- What could provocative sales and marketing tools mean to break the status quo and drive incremental sales?
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