Bad Sales Experiences Could Cost Millions

— July 30, 2014

Results from a global survey, “The Metrics of Bad Sales Interactions: A Sales Experience Benchmark Report," examines the impact of "bad" sales experiences and highlights the various disconnects and misperceptions between sales and marketing teams.
 
Marketing and sales professionals reported that 72% of bad sales experiences result in a loss of revenue, while 70% admitted it takes months if not years to recover from the damage the experience inflicts on prospect relationships.
 
The study was commissioned by Showpad—a provider in mobile sales enablement—and was administered by analyst firm, Demand Metrics.
 
Key findings include:

High Revenue and Opportunity Cost

  • Sales professionals fail to convert a sale about 70% of the time they engage with a qualified prospect. One bad experience has long-term effects.

  • Fifty-nine percent reported that a bad sales experience results in immediate opportunity loss—impacting B2B companies that have long sales cycles (many of which occur only once every few years.) 

Employee Disconnect
There's disconnect between sales and marketing teams that create a large financial impact throughout organizations.

  • Sixty percent of sales reps blame price as the cause for losing a deal. Marketing reported that sales should overcome price concerns through relationships and skills, while sales believes marketing should mitigate price by providing collateral that emphasizes value and de-emphasizes cost.

  • Marketing and sales are also misaligned on the value and usefulness of marketing assets. A majority of sales pros (64 percent) think marketing content is neutral to ineffective, while 76 percent of marketing pros rate their collateral as effective.

We Can All Get Along
Achieving sales and marketing collaboration is worth the work as the survey reveals that organizations more closely aligned, deliver better revenue performance.

  • Teamwork Trumps Silos: Sales and marketing collaboration results in won business.

  • When collaboration between sales and marketing increased, bad meeting frequency went down while close rates went up.

"The results of this recent survey clearly show that companies across the board are consistently losing revenue because of bad sales experiences, said Jerry Rackley, Chief Analyst, Demand Metric. "We've been able to derive some valuable insights that can help the marketing and sales functions understand how to better collaborate to ensure that bad sales experiences become a thing of the past."

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