Will the Current Situation in Sales Be the New Normal?

Economic challenges and increased financial scrutiny have shaped the sales landscape in the past three years. In 2020, the global economy was rocked by the COVID-19 pandemic, lowering the world’s GDP by 3.8%. Despite an initial recovery in 2021, 2022 and 2023 also saw record inflation. 

This economic downturn created a new standard in decision-making and spending for companies. These changes in buying behaviours have also resulted in changes in the sales world, which may become the new normal as we head into 2024.

The New Normal in Business?

Businesses today face considerable challenges due to the economic climate. A survey by the National Federation of Independent Business Research Foundation highlighted that 33% of companies cite inflation as their most critical problem​​. 

This reflects an environment where businesses are increasingly cautious about growth-related decisions and spending. These economic concerns mean buyers are more hesitant and can only afford to make investments if they consider what the product can do for them.

The Emergence of Buying Committees

Over 80% of enterprise companies use a buying committee when purchasing software. These committees can consist of up to ten decision-makers, each with unique needs and concerns​​ that must be addressed. 

This is a departure from the traditional approach of engaging with a single point of contact, necessitating a more comprehensive and multi-faceted sales strategy.

The approach of sales teams has changed, too. Now, the salesperson is engaged for only 17% of the buying discussion. Empowering a deal champion to navigate a buying committee in the absence of a sales rep is crucial.

The Importance of ROI Justification

In today's harsher economic environment, the justification of Return on Investment (ROI) is more crucial than ever. Businesses are focused on making financially responsible choices, and as a result, CFOs are starting to be much more involved in purchasing decisions.

A strong business case will demonstrate value to a CFO and ultimately help get the deal across the line.

Financial Accountability for All

Financial prudence is becoming a standard practice across businesses of all sizes. Inflation and supply chain issues are causing a more cautious approach to spending. 

It’s important to provide accurate and accessible pricing models so prospects so can manage their financial resources effectively.

Building Solid Business Cases

Creating compelling business cases that demonstrate the impact of products and solutions on KPIs has become more important. 

Sales teams are now required to tailor their business case to address the specific pain points of each buying committee member, ensuring that the final decision is made with a comprehensive understanding of the value proposition.​​ This process requires a deeper engagement with customer stakeholders, utilising a collaborative strategy to make the business case as relevant as possible. 

“A business case will always be better than no business case. A business case built with the customer's stakeholders goes even further.”

Old Standards, New Tech 

The current economic landscape is marked by concerns about inflation, supply chain issues, and labour challenges, resulting in the world of sales changing.

But how different is it really? 

It should be normal for businesses to care about their investments and prioritize ROI justification. The last five years felt like an anomaly. According to Forbes, over half of enterprises waste more than 10% of their budget on SaaS and cloud infrastructure. The “new” standard, although spurred on by the modern economic climate, may simply be a return to older, solid business principles of diligence and prudence. 

Fortunately, technology, especially AI, has advanced rapidly in the past 5 years. Sales teams incorporating these newer developments while operating in a more traditional landscape will perform better.  

As enterprises return to financial conscientiousness, sales teams will need to address the needs of buying committees and provide accurate and relevant justification to their prospects with solid business cases.

Minoa helps address these challenges by facilitating individualised and adjustable ROI calculations and building collaborative business cases that allow sales teams to not only adapt to the current economic climate but thrive in it. 

If you’d like to learn more about how Minoa can help you navigate the changing world of sales, please book in a demo here.