Beyond price, other frequently cited reasons for failing to close sales include failure of the sales team to perform (35% of survey respondents), lack of a compelling product or service (31%), difficult business terms or conditions (21%), and failure of the marketing team to perform (18%).
Below, additional key findings from the report, which was based on data from a survey of 182 marketers, sales professionals, and presidents/CEOs. (Some 67% of respondents work for B2B-focused companies; 25% for B2B-B2C hybrid companies; and 8% B2C-only companies).
The Blame Game
- Aside from price, there is little agreement between sales and marketing professionals about why deals fail to close with qualified prospects.
- Sales professionals cite the lack of marketing assets and support as the top reason they fail to close deals.
- Marketers' view of the top cause of failure—lack of empowerment to negotiate—is more sympathetic to their Sales colleagues. However, the second-ranked cause is not: lack of sales skill or ability.
Sales Closure Rate
Sales professionals say they "strike out" around 70-80% of the time they engage with a qualified prospect (the median sales closure rate of respondents is between 21% and 30%).
Ayaz Nanji is an independent digital strategist and a co-founder of ICW Content, a marketing agency specializing in content creation for brands and businesses. He is also a research writer for MarketingProfs. He has worked for Google/YouTube, the Travel Channel, AOL, and the New York Times.
LinkedIn: Ayaz Nanji