Ten Trends That Will Make or Break Your Revenue Engine

 

The new year finds the world of business facing a storm of changes that will stretch and challenge even the most seasoned and talented sales organizations. These changes can be summed up in a set of 10 current or coming trends that will either make or break your revenue engine before this year is over.

1.Commoditization is dramatically increasing; relationships are the only answer

When markets achieve an equilibrium of competitiveness – i.e., when computers from HP or Lenovo or Acer or Toshiba all look the same, perform the same and cost the same – even your top of the line products and services are suddenly viewed by customers as plain old commodities rather than distinctive assets. What is the antidote to this potentially fatal shift to commoditization? In a single word, the answer is – relationships. Knowing how tobuild strong customer relationships will set your organization apart from the rest.

2. Customers will continue to get smarter

With the Internet providing the matrix, and lightening fast computers and hand held devices providing the medium, customers are now able to collect and analyze data on every aspect of the products and services they want. It is now possible for your customers to know more about your company, your products and services, and your competitors than you do. How will your company respond to this challenge?

3. Sale processes must adapt to new purchasing patterns

Armed with access to better information and more powerful tools, customers are now taking charge of the purchasing process like never before. This access to information and technology also will increasingly impact the length of the sales cycle in a number of markets. Now that customers can more effectively shop on their own– even for expensive capital outlays involving sophisticated technologies– they may be ready to move more quickly even on major purchases. They will definitely require that the account rep be more responsive, especially when it comes to providing complete and timely proposals and supporting data.

4. Sales and marketing functions are aligning

With the world shrinking and every market overflowing with aggressive competitors, organizations cannot afford to waste valuable time and resources by having the marketing group and the sales group working out of sync with each other. Historically, the marketing group’s efforts to recruit good prospects have been conducted more or less independently from the process used by the sales group to transform these prospects into customers. Marketing tends to focus on long term strategies for reaching a general pool of potential new customers, while the sales group is very much concerned with closing as much business as possible, as quickly as possible, with as many high value customers as possible. This misalignment of needs, goals and strategies can lead to significant inefficiencies within the organization, and it can also create frustration within both groups. Companies must find ways to correct this imbalance.

5. Talent will become even more scarce

Organizations that track labor trends estimate that one-fifth of America’s leading corporations could lose as much as 40 percent or more of their top-level talent in the next five years. Boomers by the millions are now poised to exit the workforce every year. The Bureau of Labor Statistics confirms that by 2008 the number of young adult workers ages 25 to 40 years old will decline by 1.7 million, reversing a historic growth rate for this age range that once topped 54 percent. During the next 20 years the growth rate in this age range is expected to be no better than 3 percent. By 2010, the U.S. will face a 10 million worker labor shortage.

6. Four generations in the workforce at once

For the first time in the history of the US labor market, there are four distinct generations in the workforce: Traditionalist– born before 1946, Baby Boomers – born between 1946 and 1964, Gen Xers – born between 1965 and 1980, and Millennials (also known as Gen Yers) – born between 1980 and 1999. Throwing together such a diverse group of needs, experiences and values can create unique challenges for any organization striving to hone a competitive edge

7. Travel budgets will be slashed

The American Express 2008 Global Travel Forecast estimates that business travel costs will rise by at least 7% over the next 12 months. This growing intrinsic cost of business travel is creating concern for CFOs and others who are seeking ways to cut operating expenses and remain profitable under the pressure of relentless competition. Given the global scope of doing business, these increases present major challenges to the company bottom line.

8. US economic growth will slow

While some observers are still crossing their fingers and hoping the economy won’t sink as low as it could, most business leaders are preparing now for the likelihood of an economic slowdown that may have already started and could last at least through all of 2009. There is still a great deal of uncertainty because, even after months of analysis and hand wringing, it is still not clear just how much damage the economy has suffered as a result of the subprime debacle. What does this mean for your business? Cost of doing business is going up; access to lines of credit will be harder to come by; competition for accounts becomes even more fierce; pressure from customers for you to discount products and services becomes worse than ever; margins are likely to shrink.

9. Good is not good enough

Simply put, the standards you found acceptable in the good old days are no longer good enough. In the eye of the coming storm, the stakes are too high, the challenges are too formidable and the competition is too intense. You must radically refine your standards to demand more of yourself and your organization. Not only is it imperative to address these trends immediately, it is critical that you find outstanding solutions for each one that will set you apart from your competitors and create exceptional value for your customers and your organization.

10. Selling 2.0 will separate the winners from the losers

Yes, a storm is definitely upon us, yet, the storm itself creates powerful new opportunities for those who know the best way to harness the power of the wind and waves. While others are simply hoping to ride it out, 2.0 Sales Leaders are discovering and leveraging new tools and skills to put miles between themselves and the competition. Selling 2.0 is the marriage between selling/marketing skills, processes and new web-based technologies created to advance the effectiveness of not only the sales professional, but the entire revenue generating engine of your company. We look forward to telling you all about it.

At Baker Communications, we see these trends and the resulting market shifts as a tremendous growth opportunity for those who are prepared to exploit them. Visitwww.bakercommunications.comfor solutions that will prepare you for the coming storm, or attend one of the Conquering Uncertainty; Selling in the Eye of the Storm events coming to a city near you.

 

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