Value Drift could be killing your sales. Here are the warning signs.
Whether you are responsible for your company’s overall growth strategy, or are a salesperson with a quota, it’s crazy-making when customers don’t “get” the value of your amazing offering.
If you are confident that your B2B product or service creates significant business value for customers, and yet you are seeing any of these 3 fact-based warning signs, your business may be experiencing value drift.
Sign #1: Sales activity is increasing, but conversion rates are slipping
When I work with a sales organization that is doing more meetings, demos or trials, but the conversion rate from those activities is decreasing, it often indicates that customer value is growing fuzzy.
Sign #2: Your proposal-to-close win rate is less than your industry average
It’s possible that your win rate may not be trending down, and your value has been loosely connected for some time. One indicator is how your proposal-to-close win rate compares to others in your industry. Although there are differences by type of business, inbound-generated opportunities should close at 20% or higher, and you should be winning at least 14% of outbound opportunities. Those figures are the floor, and well-tuned revenue engines can often produce win rates of 30% – 40%, and sometimes even higher. How does yours compare?
Sign #3: Your Founder (or a top salesperson) can sell 3-4x what the average salesperson produces
If some people in your organization can sell that much, it means that the offering is valuable and it’s possible to connect that value to customers. But it’s also difficult, and only a few can pull it off. This tells us that the means to connecting customer value are not well understood or reduced to practice. Statistically, you have high variation in your sales process. This is costly, but fixable.
If you want to understand the causes of value drift and how to address it, please sign up to watch the recording from this 5-part webinar series devoted to helping high growth B2B businesses build scalable Revenue Engines.