Has your business been experiencing a decline in sales recently?
Have the customers been abandoning your business due lately?
Has your overall revenue growth come to a screeching halt?
What may be causing all these mishaps? Not quite sure? Read on to find out.
Unrealistic expectations:
There are instances of senior management placing unrealistic expectations on sales, in a desperate attempt to increase revenues which unexpectedly leads to a decrease in the profits. Other reason responsible may be, consumers not reacting to an offering as per the expectations of the company.
Ineffective salespeople:
Ineffectiveness of salespeople means the sales management is unable to achieve the goals set by the company. Such a situation calls for performance-improvement plans with regular reviews and mentoring.
Poor sales pipeline:
A poor sales pipeline can also affect the performance adversely. Sales organizations pressured to show immediate sales are likely to focus on the back end of the pipeline, where the deals are closed.
Poor economy:
A poor economy, such as a recession, is yet another factor responsible for a dramatic downfall in the profits. Organizations caught in this situation may have no choice but to scale back operations or change pricing models and product lines until the economy is back to normal.
Buyers treating your offerings like a commodity:
As a result of a tremendous speed of change and intense global competition, products, and services these days can quickly lose their competitive edge. Companies need to build perceived value and stand out from the crowd when buyers treat their product like a commodity that is similar to others in the market.
An Increase in price pressure:
As a matter of fact, 83% of companies suffer from increasing price pressure and margin erosion. 49% state that they are actively engaged in a price war. While 60% of executives cite stronger competition from low-priced players to be the major reason for increasing price pressure.
What do you think is responsible for your business’s sales decline?